Is bad credit a common concern for you? Do you suspect that your loan application could be rejected because of that? If you’re uncertain, here are the top signs that show you are in desperate need of credit repair.
- It is difficult to get a loan
A lender will almost always check your credit history before granting you a loan because that tells him/her if you are a trustworthy borrower. After looking at your credit report, the lender will already know the fate of your loan application.
If your loan application has been rejected, then bad credit is one of the main reasons. People nowadays have no idea how easy a credit history can be ruined. You might be surprised to find out that even one late or missed payment can be to blame. So, be careful always to pay your bills on time.
- Your credit card application has been rejected
A common aspect that indicates that your credit is not the best is having your credit card application denied. The explanation is that lenders avoid approving applications from people who are not very good at managing their money. Since your bad credit proves that you are a bad payer, there are big chances that you will not be able to pay the fees for your credit card.
Typically, credit card companies must inform their clients why their applications were rejected. In the case in which that happens due to the information mentioned in your credit report, you have the right to ask for a free copy of the report.
- Debt collectors try to track you down
If you have debt collectors calling you, it could mean that your creditors have renounced trying to make you pay your bills. Generally speaking, collection accounts are included in your credit report and could jeopardise your capability of getting approved for loans or credit cards. Credit repair could mean paying off those collection accounts or contesting them in the case in which they aren’t correctly attributed to you.
Receiving phone calls from debt collectors can significantly raise your stress levels and make your debts seem even more terrible than they really are. If you haven’t taken any action until now, this would be a good moment.
- Landlords reject your applications
Landlords may check your credit rating to evaluate the reliability of the applicants. That being said, it’s best to aim at improving your credit history before looking for a new rental if you don’t want to waste your time and receive a rejection that will burst your bubble.
- Your interest rates are on the increase
As a general rule, credit issuers tend to increase interest rates depending on the information found on your credit report because they consider you a risky borrower. In other words, whenever you’re late on payments, or if a new collection account shows on your credit report, this means you could receive an interest increase letter anytime. On that note, choosing a decent credit repair company to assist you in this respect could aid you to prevent such a scenario from occurring. At Clean Credit, we deliver first-class guidance to Aussies struggling with bad credit. So, feel free to give us a call for a free consultation or start your credit repair process.
- Card issuers close your credit cards
Although having a single credit card closed doesn’t seem to be a tragedy, when this happens more than once, it is a clear sign that points the importance of having credit repair. It’s best to discuss with the credit card companies to address the source of the problem.
On a final note, repairing your credit could open a handful of opportunities to you. As you can see, bad credit does not affect you only when you are trying to apply for a new loan, like many people seem to think. Your credit score can either open some doors for you, or close them, depending on your situation.
So, keep in mind that it is never too late to start the credit repair process. However, it would be better if you do not wait until the situation gets worse.