As a broker, it can be frustrating when you’ve put a lot of work into a client’s loan application only to discover they have a poor credit score. If they then get rejected, you’ll miss out on your commission payment.
But if you can help your client improve their score, it increases their odds of getting a loan in the future. And who will they likely turn to to help arrange them this new loan? Yes, you – the broker who solved their problem!
Here are five ways you can help your clients with their credit scores. Encourage them to:
1. Schedule payments for bills
The best way to improve a credit score is by paying bills on time. But, some people are just plain forgetful or accidentally skip payments when they go away. Direct debits and reminders are an easy way to solve this.
2. Fill out credit applications consistently
Most people don’t realise that the information they put on a credit application makes its way to their credit report. So if they are inconsistent with their details, it can set off red flags.
3. Pay existing outstanding debts
Outstanding bills over $150 are recorded as defaults on people’s credit files once they are 60 days overdue. These stay on file for five years, so can have a big impact. If your client can’t afford to pay the bill in full, encourage them to negotiate a payment plan with the lender as this shows financial responsibility.
4. Visit a quality credit repair agency
Talking of defaults, creditors sometimes make mistakes or don’t follow the proper processes when they put black marks on files. Credit repair agencies can find and remove these inaccurate listings, which may improve your client’s credit score.
5. Close unused credit accounts
The total amount of credit your client has access to can have a negative impact on their score. So closing unused accounts and lowering limits may give them extra points.
Partner with Credit Repair Solicitors today and help your clients solve their credit problems by emailing info@crsolicitors.com.au
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