How to Fix a Bad Credit Score in Australia
Imagine standing in front of your dream home or ready to drive away in that shiny new car, but your credit score stands in the way like a giant roadblock. It’s frustrating, right? The good news is that bad credit doesn’t have to haunt you forever. Whether you’ve missed a few payments, defaulted on a loan, or just let things slide, there’s a way out.
At Credit Wipe Australia, we know your credit score is more than a number. It reflects your entire financial journey from the moment you started using a credit card. And while that journey may have some bumps, the destination is still well within reach. Let’s figure out how to fix a bad credit score in Australia and return to financial freedom.
1. Check Your Credit Report & Score
The first step in fixing your credit is to check your credit report. In Australia, three major credit reporting bodies manage your financial history: Equifax, Illion, and Experian. Equifax and Illion hold most of the data, while Experian is relatively new to the market. You are entitled to a free credit report from each agency once every 3 months and once every time your credit report is amended or if you’ve been denied for credit.
Examine your report closely for any inaccuracies. Check your credit score, too. Generally, credit scores range between 0 and 1,200 in Australia, and anything under 500 can be considered a low score. Once you know your score, you can create a plan to fix it.
(Be careful to avoid credit scoring companies which offer their won credit score. Not only are these completely inaccurate, they often only hold information from one of the reporting bodies and re in the business of offering you financial products for maximum profits)
2. Identify What’s Hurting Your Credit Score
To fix a bad credit score, you need to identify what’s dragging your score down. The most common culprits include missed payments, defaults, court judgments, and multiple credit enquiries. Even small things, like being late on your phone bill, can impact your score negatively.
In Australia, a bad credit score often comes from unpaid debts or defaults recorded on your credit report. Court judgments and bankruptcies can also tarnish your score for up to five years. Knowing exactly what’s contributing to your bad credit will help you map out a solution to fix your credit score in Australia.
3. Remove Negative Items from Your Credit Report
Now that you’ve identified the issues, it’s time to remove negative items from your credit report. Defaults and court judgments are extremely damaging, so they need to be addressed first.
Please note that paying your default does not removed it. The listing only gets updated to paid, but you will still have bad credit.
Some lenders in Australia are known to place inquiries on your credit report, even for small amounts, under $5,000, or from low-tier lenders. These inquiries can harm your credit score.
4. Amend Late Payment History
Your payment history will reflect if you’ve consistently been late on bills. Unfortunately, this part of your credit report can also drag your score down. However, amending your late payment history will make a significant difference. Going forward, ensure that all your payments are made on time. Set up automatic payments to prevent missing deadlines.
Employing a professional credit repair service like Credit Wipe Australia can help you to remove defaults, court judgments, and other negative listings from your credit report. We specialise in helping Australians clear their bad credit history in Australia and start fresh.
5. Build Your Credit Score
Once you’ve cleared negative items from your report, the next step is to build your credit score. Start by managing your credit responsibly. Here are some tips to help you boost your score:
- Avoid applying for multiple credit accounts within a short period.
- Keep your credit card balances low and pay them off on time, every single time.
- Pay all your bills on time and in full each month.
- Building a good credit score takes time, but every positive step you take helps improve your score.
For example, suppose you’ve recently fixed your credit score in Australia by removing negative marks, maintaining a low credit utilisation ratio, and making timely payments. In that case, your score will be further enhanced. Remember, each action towards responsible credit use is a step towards a stronger financial future
Common Myths About Fixing Credit Scores
There’s a lot of misinformation out there about how to repair your credit. Here are some common myths:
Myth 1: You can fix your credit overnight.
Reality: Improving your credit score takes time, but with the right steps or professional help, you can see significant improvements within months.
Myth 2: Paying off all your debt will immediately fix your credit score.
Reality: While paying off debt helps, it doesn’t wipe out past mistakes.
FAQs About Credit Repair in Australia
Can I Fix a Really Bad Credit Score?
Yes, you can fix a really bad credit score. No matter how low your score is, there are strategies to improve it. It’s possible to rebuild your credit from disputing inaccurate listings to improving your payment habits. However, the time frame varies depending on the severity of your credit issues.
What Is the Fastest Way to Fix Your Credit Score?
There’s no magic solution for fixing your credit score quickly, but here are a few things that might help speed up the process:
- Dispute inaccuracies: If errors are on your report, correct them immediately.
- Clear outstanding debts: Pay off any overdue accounts affecting repayment history immediately.
- Manage your credit responsibly: Keep your balances low and pay on time.
How Long Does a Bad Credit History Last in Australia?
In Australia, a bad credit history can stay on your report for up to seven years, depending on the type of negative listing. Defaults and court judgments last five years, however clearouts, serious credit infringements, bankruptcies & Part 9 Debt agreements can stay for 5 to seven years, or even longer in bad circumstances. The good news is that companies have been removing bad credit for decades now and with time and responsible credit management, your can have a great credit score in little to no time!
What Are Credit Repair Services?
Credit repair services like the ones Credit Wipe Australia provide specialise in helping individuals clean up their credit reports. These services remove defaults, court judgments, inquiries, and other negative listings from your report. They can also offer advice on how to rebuild your credit score, negotiate debt after removal and re-apply for finance.
When Should I Use a Credit Repair Company?
There are many times when hiring a credit repair company makes sense. If your credit report is filled with defaults, court judgments, or other negative listings that you can’t resolve, you need professional help. At Credit Wipe Australia, we’re experts in removing negative items and helping you achieve a clean slate. We’ve helped to remove over 10,000 defaults in 6 years. Get in contact for a free credit report assessment to see if you we can help you too!
What Can Be Repaired?
Credit repair services can help to remove the following from your credit report:
- Defaults
- Court Judgments
- Credit Inquiries
- Late Repayment History
- Merged Files
- Incorrect Personal Information
- Clearouts
- Serious Credit Infringements
- Inaccurate Bankruptcies & Part 9/10 Debt Agreements
However, it’s important to note that not everything can be removed. However, get in contact with us on 1300247030 to see you qualify for help and get your free credit file assessment today!
How much does credit repair cost?
The cost of credit repair can vary depending on the extent of the issues on your credit report and the company you choose to work with. Some services charge a flat fee, while others may offer tiered pricing based on the work required. Typically, prices can range anywhere from a few hundred to a few thousand dollars, depending on the complexity of your case. Researching and choosing a service that fits your needs and budget is important. But understand that not all companies are created equal, and what you may save on price, may cost you the service you need.
Can I pay to fix my credit score?
Yes, you can pay for professional credit repair services to help improve your credit score. These services can assist in removing negative items like defaults, judgments, and unnecessary inquiries, as well as negotiating with creditors on your behalf. While you can work on fixing your credit yourself, hiring professionals can streamline the process and may achieve results more efficiently. Remember that not all issues can be removed, and choosing a reputable service is essential.
Take Control of Your Credit Today
In short, repairing your credit score is a long-term investment in your financial future. Whether you work on it yourself or consult professional help, your steps today will make a lasting impact. At Credit Wipe Australia, we believe fixing your credit gives you a second chance at financial freedom. Since 2018, we’ve been committed to making the credit repair process faster, simpler, and more effective than ever before.
We’re here to guide you every step of the way. Contact us today to learn more about how we can help you on your journey to a better credit score.
