Keeping your credit record in tip-top condition is very important. Here are six ways to make sure yours is in good shape.
1. Look at your credit file
It’s something a lot of people never do, but knowing what’s in your credit file can help you sort out erroneous information, see patterns of debt and plan for the future. It can also help you avoid bad surprises in the form of being denied on applications. Sign up to view your credit report through Veda and set up alerts to stay aware of any changes to your file.
2. Report inaccuracies
It helps to immediately report anything on your file that is incorrect. Include the account and reference number when notifying the credit bureau. An incorrect listing may be the one thing stopping you from having a loan or credit application accepted.
3. Set up a clearance plan
Default overdue accounts stay on your file for five years, while clear-out overdue accounts remain for seven, as do bankruptcies. If these situations have marred your credit history, knowing when they will clear or appear as resolved will help you plan for your future.
4. Consider repaying default loans in full
It’s worth asking a lender if it will completely remove your delinquency from your report if you pay in full. Consider getting it in writing in case the lender doesn’t deliver on its promise – that way, you can at least show the credit bureaus, says Finance Comparison.
5. Consolidate your debt
One way to keep track of and pay down all your debts is to roll them into one payment. Commonwealth Bank offers personal loan options to help you pay your debt faster. Check out the Personal Loan section of the website to see if this choice is right for you.
6. Keep lines of credit open
Try to resist the urge to close your credit cards once you pay off the balance. The longer you’ve had an account open, the better your overall credit history will appear.
Finally, if you want to be a good candidate for credit from your bank follow these three steps: show good account behaviour, get your salary paid into your account and become a regular saver – even if it’s small amounts – they add up.
What are your tips for maintaining healthy credit?