Tips to Keep your Credit Report in Good Shape.

Your credit report is a written history that notes exactly what loans and credit facilities you’ve sought in the past and monitors how well you’ve repaid these credit and loan facilities. It records any overdue repayments (60 days), as well as personal bankruptcies, court judgements, debt agreements or insolvency agreements organised in your name.

When you apply for a loan, lenders look at your credit report to better understand how well you manage your debts. Having a good credit report plays an important role when lenders decide to offer you finance or credit. If you have poor credit, lenders may see you as a liability. In saying this, if you have a good credit report, this can also help speed up the process of applying for a loan.

It is important that you always consider your credit report when managing repayments. Maintaining a strong credit report makes you attractive to lenders, increasing the likelihood of securing a competitively priced loan.

Some tips for avoiding unwanted black spots on your credit report include:

1. Set up automatic direct debits for loan and credit card repayments
2. Schedule loan repayments for pay days
3. Keep track of all your credit commitments.
4. Apply for a loan or credit only when you really need it.
5. If you are likely to have trouble meeting loan repayments, contact the lender before the payment is due to request an extension or negotiate payment terms. Don’t skip a payment.

In order to maintain your credit history, it is important to regularly review it. Here at Mortgage Choice Northern Rivers, we can request a copy on your behalf, saving you the hassle and best of all, our service is free. Even if you have no immediate plans to apply for a loan, you should still be taking this step annually. See us today and let us break your credit report down for you, so you know exactly where you stand with your credit history.

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