Our service as a guarantor loan provider was created and developed precisely because so many of our customers came to us looking for a loan after being denied through traditional means due to a poor credit score. If you have an adverse credit score you can still acquire a loan or other credit, but it is good practice to look at ways in which you can improve your credit score over the coming months and years.
Having a bad credit score can create barriers that are difficult to overcome. You can build a positive credit score with some hard work and dedication. First, it is important to understand the things that affect your credit score and how you can change habits that alter your credit score.
This is perhaps the biggest thing you can do to build a good credit score. Always ensure that you pay your bills on time or before the scheduled payment date. By displaying that you are a consistent payer, and always on time, will go some way to rectifying a poor credit history. The bigger the payment, the more important it is that you pay on time, as anything over $150 could eventually lead to being marked as a default on your credit report if you fail to pay within 60-days on the due date.
If you are not stressed and overstretched through paying out multiple debts it will help you to have peace of mind and greater finances. On top of that, paying off your existing debt will help your credit score. Also, having a high debt balance consistently will look bad for your overall credit history, so think about consolidating your debt in one place, or looking for ways to transfer debt. For instance, if you have a credit card and you are struggling to pay off the interest alone, look for lower interest rates or promotional 0% periods and use a balance transfer service.
If you make any attempt to secure new credit it will appear as a search on your credit file. If you are turned down for an application, this could negatively affect your credit score. The Australian credit agencies each determine a credit score in different ways, but if you are already in a situation where you have poor credit, and you apply for more, this does not give a good impression.
If you have maintained a positive credit account for a long period of time without any negative reports attached to it, this will help to increase your credit rating. Good practice if you can get into the habit of religiously sticking to it, is to pay for certain regular items (such as groceries) on your credit card, always paying off the full amount on or before the scheduled payment date.
It is important to fully understand your credit score and to know how to deal with your debt in a way that keeps your credit file heading in the right direction. If you would like to find out more about the Clear Loans guarantor service, please feel free to speak to a friendly member of our team on 1300 430 935.
