Credit Repair Solicitors

signs to fix your credit score

10 signs it’s time to fix your credit score

Credit scores aren’t set in stone. They can go up and down depending on your financial behaviour. But what are the signs that you may need to get back on track with yours? 

1. You get rejected on loan applications

Many lenders check your credit score when they assess your suitability for a loan. If they don’t think it’s high enough, they may turn down your application. 

2. You only get offered high rates

Lenders typically view a borrower with a low credit score as risky. So they’ll often jack up the interest rate they offer to minimise their risk.  

3. You get calls from debt collectors

It’s a big red flag that your credit score is in trouble when the debt collectors start calling. Don’t ignore the problem. Rather, contact us for help with debt negotiation.  

4. You don’t pay bills on time

Whether it’s caused by forgetfulness or a lack of funds, making late payments can do some serious damage to your credit score. If the debt is for $150 or more and overdue by more than 60 days, it gets marked as a default and stays on your report for five years. 

5. You’ve made a lot of credit applications

If a lender checks your credit file, this gets recorded on your history as a ‘hard enquiry’. While having a few hard enquiries is fine, too many in a short space of time can drag down your credit score. 

6. You avoid looking at your financial statements

If the sight of your bank or loan statement fills you with dread, it’s often a sign that financial trouble may be brewing. 

7. You’ve maxed out your credit card 

Maxing out your credit card isn’t a great move when it comes to your credit score. That’s because lenders often look at your debt-to-credit ratio when they calculate your score. 

8. You use payday loans

Using payday loans to get through the month can be a risky business. They usually come with high interest rates that may add to your debt burden. 

9. Your creditor is taking you to court

Creditors can sue you if you don’t pay your bills. If the court rules in their favour, a judgement will be listed on your report and wreak havoc with your score. As solicitors, we can represent you if this is happening to you. 

10. You make back-to-back balance transfers

Credit card balance transfers can be a good way of managing your debt. However, if you don’t pay down the debt but instead transfer it to a new card, this may affect your credit score. 

Got bad credit? At Credit Repair Solicitors, we’re experts in Australian credit reporting and credit repair laws. Contact us for your free no-obligation consultation today.

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