Close this search box.

How To Clear Bad Credit

Discover top tips on how to clear bad credit here! Millions of Australians are held back by bad credit each year, but there are solutions...
how to clear bad credit

If you are wondering how to clear bad credit, then it is likely that you have tried applying for a loan and been told no. Many people let a bad credit history bring them down – but it doesn’t have to. Bad credit is often the result of a few poor financial choices could be something that is completely out of your control. Things happen in life that you can’t plan for, from car accidents to home repairs.

These can leave you in a position of bad credit, but it doesn’t mean you have to let it hold you back. From rebuilding your credit history to taking out bad credit loans, there are plenty of options available to you. Here are some top tips when it comes to working out how to clear bad credit.

What Is Bad Credit?

Wondering how to clear bad credit? Firstly, we have to take a look at exactly what it is. Having bad credit can actually impact your chances of being able to take out a loan. When you apply for a loan with a lender, one of the first things they will do is request a copy of your credit score. If you have a low credit score, then this reflects poorly on you as a borrower. Many lenders are unlikely to take a chance on you.

Your credit score is actually determined by the listings on your credit file. The more negative listings you have, the lower your score. Here are some of the things that can result in a negative listing:

  1. Missed repayments
  2. Defaulting on a loan
  3. Court judgments
  4. Bankruptcy
  5. Fresh credit history – the longer, the better!
  6. High credit utilisation ratio

Knowing this, you may be wondering how to clear bad credit. There are a few steps you can take to get your credit report back on track and up your credit score.

clear bad credit

How To Clear Bad Credit

If you are wondering how to clear bad credit, then the simplest answer is to change your financial habits. There’s no doubt that finding yourself in a position of bad credit can become a never-ending cycle. It’s one that can be hard to get out of. Here are a few steps you can take to start making some positive changes:

  1. Request a copy of your credit report: this isn’t something you want to do too often. It’s free, as long as you only request it once a year. Requesting more frequently can result in a fee. By looking at your credit score and credit report you will be able to see which areas need attention.
  2. Proceed with credit repair: If your credit score is being dragged down by defaults, credit enquiries or court judgments then credit repair could be your best option. This is a fast and affordable solution which can completely wipe your slate clean so you can apply for loans again. We recommend proceeding with Clean Credit. They are one of Australia’s most respected and successful credit repair companies.
  3. Consider different types of credit: the more diversity of credit you have, the better it reflects on your credit score. This includes credit cards, home loans, personal loans and so on.
  4. Make your repayments on time: it can help to set up the repayments to come out of your account on a schedule. This can make sure you never miss one.
  5. Plan for a rainy day: having a bit of money saved up can go a long way to helping you out when you need it most. Life can be unpredictable, so having a cash buffer can help stop you from missing repayments. Online budget calculators can be a great tool in helping you to manage your finances.
loan options

Other Options For Loans

While it is important to focus on how to clear bad credit, there are times you need a loan – fast. Whether you have an emergency you need to fund or are simply struggling to change your credit score around, there is another option. You can consider no credit check loans. As the name suggests, these are a certain type of loan you can take out, which won’t require a credit check.

They can be taken out on the spot, however, they do generally come with higher fees. These include an establishment fee, monthly service fee, missed payment fees, dishonour fees and more. It’s important to shop around and make sure you are getting the best value if you decide to go with this option. Look at both the fees involved, along with the interest rates charged to get a full understanding of what the loan will cost you.

Depending on your circumstances, No credit check loans have many benefits:

  • You can take one out with a low credit score.
  • As long as you can prove you are able to pay back the loan (usually with bank statements) then it can be approved straight away.
  • They can help boost your credit score in the long term, as long as you make the repayments on time and don’t default on the loan.

You can fill out a form online within 30 seconds with Bad Credit Loans. If you qualify, you could have your loan approved and receive funds within as little as 24 hours!.

Find The Help You Need

If you are looking to take out a no credit check loan or a bad credit loan, then speak with the experts today. Bad Credit Loans have a number of options available depending on your circumstances, to help you to get the cash you need when you need it.