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How to Repair Your Credit Score
our credit score is the number that reflects your creditworthiness. It’s calculated based on information from the individual credit report like the history of your loan and whether or not you have made timely repayments. If you have a low credit score, lenders are likely to perceive you as a risky venture and might refrain from lending out to you.
Do you feel that your credit score is not as high as you desire? Here are a few tips that can help in repairing your credit score.
1. Pay debts and loans right away
It goes without saying that having a record of punctual and consistent payments can help build a stronger credit score. With the introduction of positive credit reporting, timely repayments of loans are included on the credit reports. This means, if you miss the payments by any chance, it will also be recorded and have a negative impact.
2. Carefully consider before applying for new credit
No matter whether your loan is approved or not, the application itself will show up on the credit report. Those who make numerous applications within a short span, it will have a negative impact on your credit score. With that being said, taking out a credit card with a balance transfer or applying for a personal loan to combine all existing debts can help in improving credit score.
3. Reduce the upper bar on your existing credit cards
In case you have credit cards in your name, you have to consider bringing down the credit limits. Also, you should hold on to those credit cards only that you can manage. This will repair your credit score by aiding you to showcase a positive repayment history.
In most cases, the reason why people in Australia wish to improve their credit score is because they want to apply for a loan. People having a higher credit rating are regarded as lower risk candidates and are considered more eligible applicants and thus, you should consider repairing your credit score without delay.