How to Fix Your Credit Rating in Australia
Your personal credit rating in Australia can make the difference between approval for credit and an application being declined. If your credit rating is low, there are several ways to fix your credit score, including checking for errors on your credit report and ensuring your bills are paid on time.
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Instructions
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Apply for your credit report online. The Australian government has given authority to two credit reporting agencies: Dun & Bradstreet and Veda Advantage (see Resources). Both agencies are required to provide a free copy of your report by mail, and your report takes about 10 days to arrive. You must provide personal information to credit reporting agencies as outlined by Australia's Office of the Privacy Commissioner (see Resources). If you'd rather view your report online, you can for a fee.
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Look for errors on your report-correcting errors is the quickest way to start fixing your credit rating in Australia. Contact the lender and the credit reporting agency to explain what the error is. Your credit report will be amended in about a week. If you are not satisfied with the response you can make a complaint. There are two official organizations that you can complain to in Australia: the Credit Ombudsman Service or the Financial Ombudsman Service (see Resources).
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Pay as much as you can on your credit cards, and make payments on time. Reducing the amount owed on each credit card to less than 50 percent of your limit will help fix your credit rating. Your payment history and available credit limits with Australian lenders will be shown on your report. You'll be able to identify to which lenders you've missed payments or made late payments.
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Use your credit cards regularly, but wisely. A dormant credit card will result in a low credit score, but stop using cards if you're above 50 percent of your credit limit.
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Pay your bills for electricity, water and telephone on time. Australian utility companies report to credit reporting agencies.
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Tips & Warnings
If you apply for your credit rating using a subscription method, you will usually be offered a trial period before you pay. Get your report free then cancel the subscription if you don't want to get regular updates.
Only apply for your credit rating from the two official credit reporting agencies as authorized by the Australian Government; Dun & Bradstreet and Veda Advantage (see Resources). Many websites suggest you can get your report for free, but will actually charge for it, and you run the risk of becoming a victim of identity theft.
References
Resources
- Photo Credit scissors and credit card cut in two image by Warren Millar from Fotolia.com
