What is credit repair?

By Angela Monroe - November 22, 2018

What is credit repair?

If you need to borrow money, it’s likely that a potential lender is going to look at your credit score. If your credit score is low or you know that you have bad credit, you may want to start looking at ways to repair your credit.

Credit repair refers to repairing your current credit score and improving it for future borrowing. This can be done in a number of ways but it’s important to understand what is credit repair before you begin your search.

Sometimes credit repair can be done through simple steps, which you can take yourself – but often it’ll be best to ask for expert help to get a quick and effective solution.

Understanding your credit score

There are many reasons why you might have bad credit including:

  • Previous unpaid loans
  • Defaults on previous loans
  • Multiple credit applications

All of these will mean that you have a lower credit score which can make it difficult for you to get a loan or convince a lender that you are a suitable candidate to borrow money.

So what is credit repair and how can it help you? Well, it’s worth starting with our free credit check and seeking specialist advice on what can be improved.

Potential risks of debt companies

There are many reputable debt companies who want to help you with credit repair and who can help to get you back on track if you’re looking to borrow money.

Unfortunately there are also debt companies who have been known to take advantage of those looking for credit repair services and it’s really important that you stay away from companies who promise a lot but ultimately fail to deliver.

Look out for:

  • Debt companies who don’t tell you the full story – if they promise they can repair your credit but forget to tell you something important such as they can’t help with bankruptcy related loans, get your money back and walk away.
  • Any debt company, which tells you to change or remove information on your credit report, which you know is correct – this could end up with you getting into much greater trouble further down the line.

Things you can do to help your debt

The good thing is that there are things you can do to help yourself – think of it as ‘DIY Credit Repair’.

  • Request a copy of your credit report and make sure all of the information is correct. If it’s not, you can request that the information is changed or removed.
  • Always make sure that you pay all of your bills on time. If you haven’t done this in the past, make sure you start immediately – generally you can expect your credit score to improve within 3 months of regular repayments.
  • Clear any outstanding debts – although this can take time, it’s important you do this so that you can start any credit applications with a blank slate as well as showing evidence of repaid bills or loans.

The next steps

By now you likely understand how credit repair works. Yet you might still have doubts around how you can improve your credit score and benefit from credit repair by yourself.

It’s really worth asking for expert help. You’ll be saving yourself time, money and a huge amount of stress by working with experts within the industry who have the knowledge and expertise to help you with credit repair.

At Loans for People With Bad Credit, we have decades of experience helping people with bad credit to get the right loans for them. Call 1300 769 384 and we’ll give you instant access to a wide range of lenders who can help you on your journey to getting a loan with bad credit.

Angela Monroe
Angela Monroe is the Community Manager at The Positive Group, specialising in giving people the information that they need when they need it, and putting you on the path to a fair financial future. She has 8 years of experience in helping Australians find the right finance solutions, and regularly contributes articles to empower Australians with the knowledge they need to become financially healthy.

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