If you need to repair bad credit it can seem pretty daunting and overwhelming but it doesn’t have to be. We have outlined some simple steps that will get you on the road to recovery from bad credit.
Repair Bad Credit:
1. In order to repair your credit rating you need to know exactly what your credit history says about you and the only way to do this is by looking in detail at your credit file. You can get a copy of your credit file for free from Veda which should arrive within 10 working days of receipt of your request. You will need to provide them with:
- full name
- date of birth
- driver’s licence number
- two forms of identification including a copy of your driver’s licence, passport, birth certificate or Proof of Age card, as well as a document issued by an official body which includes your name and address (i.e. rates notice, utility bill or bank statement).
- your current residential address (and any previous addresses for five years)
- your current employer or a previous employer
- the name of the organisation to which you last applied for credit
- a daytime telephone number
- your signature
Send the request to Veda Advantage Public Access via post to: PO Box 964 North Sydney NSW 2059 or fax: (02) 9278 7333. You can also get a copy of your file within a day but there is a fee involved: find out more here.
2. Once you have received and read through the credit report contact the lenders who have listed overdue accounts ny way of either a “payment default” or a “clearout”. Do all that you can to repay any outstanding money as soon as possible. Once you have done so ask that the lender update your file stating that the account was either bought up to date, paid in full or settled. Unfortunately correcting the default will not have the entry removed from your report; clearouts (or confirmed missing debtor as they are also known) will remain on your credit file for 7 years while defaults will remain for 5 years.
If an overdue account on your credit file has been paid but has not been updated to reflect it is finalised, then contact the credit provider and ask them to contact Veda Advantage to update their entry. Your credit file will be updated within five days of the credit provider notifying them that the account is finalised. If you are unable to make contact with the credit provider, contact Veda about this and forward along with evidence of payment. They will verify the information with the credit provider and advise you of the outcome within 30 days along with providing you with a copy of the amended file. The fact that an account has become overdue and has since been paid becomes part of your credit history.
3. Get organized. Do a budget and stick to it. Set alarms and reminders in your phone and calenders to ensure that you pay your bills on time. Staying on top of due dates will make sure that no further defaults are added to your file, which would only compound your issues.
4. Contact your local bank manager at that bank where your salary or wages are deposited and request a meeting. Be open and honest about your credit history issues as well as the steps you have taken to repair the damage. Discuss the possibility of a secured credit card to help re-establish your credit standing.
While these tips will no more grant you an instant approval credit card for bad credit as magically remove the blemishes from your credit file, they are necessary first steps to repairing a bad credit rating, for those who are serious about making amends.
