In this article, we are going to talk about how important it is to check your credit on a regular basis. The majority of Australians don’t grasp the genuine significance of checking their credit record so that they could be able to prevent further mistakes or problems that might occur when they want to get approved for a loan, for instance.
If it happens you miss a few payments you have to make on a monthly basis, this will leave a bad mark on your credit history! And badly enough, it could affect the interest you will get next time you apply for a loan. Banks and lenders have access to this information, and they will ask for your credit report to test your reliability. Thus, it is very important to check your credit before you wreck it.
Check your credit
Checking your credit regularly is a positive idea so that you make sure everything is in perfect order and up to date. There are cases in which incorrect information can detrimentally harm credit records. And of course, you don’t want these possible issues to harm your credit record and deter you from getting approved for a loan.
What affects my credit rating?
Before March 2014, aspects that were added to the credit rating included paying a bill 60 days late, for instance. However, ever since that date, the laws have been altered. Now other aspects are included in these credit ratings. Information such as whether you have made repayments on time or not, whether you exceeded your credit limit or not and much more are recorded on your credit file.
Moreover, when it comes to mortgages, investment loans, home loans, and car loans, the same principle applies. Whether you have or have not made repayments on time will be the information held on your credit history that will imminently affect your rating. For instance, information regarding bankruptcy will remain on your credit history for five years’ time. Information concerning delaying to make payments on time will be held on your credit history for two years.
How to fix mistakes on your credit report
Believe it or not, 30 percent of the Australians that asked for a credit report indicated mistakes. So, our advice is, don’t underestimate the importance of checking your credit at least once a year. If you notice any irregularity, contact the credit provider. As soon as the problem is fixed, you will be notified. Still, be it the case you will have complaints, you can make a complaint to the Office of the Australian Information Commissioner.