10 Ways to Help Your Clients Protect Their Credit Files in 2022
Promoted by Credit Fix Solutions.
It’s the start of a new year and people are taking their lives into their own hands. This includes finding ways to secure a better financial future. Victoria Coster, CEO of Credit Fix Solutions, explains how you can help your clients protect their credit reports.
The last two years have been difficult for everyone, but many people are taking the opportunity to review their plans and put in place positive measures for their financial affairs. They have hopes and dreams of taking a vacation as well as buying, building or renovating a new home. Part of this process should include ensuring that credit reports are protected and that your customers are doing their best if they ever need to take out a loan.
here is 10 tips you can share with your clients to help them protect their credit report:
- Do not apply for financing online
As a credit repair service provider, we see many consumer reports every week and we see many people make the mistake of applying for finance online. In some cases, they panicked and inquired 10 or more times over a weekend for a personal loan or credit card, which negatively impacted their credit score and credit report . The harsh reality is that these requests can only be removed if they are fraudulent or incorrect and the only thing you can do is wait for the effect of these requests to wear off over time, which can take six months or two years. depending on the damage. caused.
- Check your credit report and score regularly
We have three credit reporting agencies in Australia for consumer reporting: Equifax, Experian and Illion. Credit grantors can be inconsistent in how they check credit reports. We know it’s more common for lenders to check Equifax’s report, but you can’t be sure they check Illion and Experian. The best thing to do is sign up to get your score every month, which costs around $10 a month.
- Remember buy now, pay later loans
Buy now pay later short term loans that are quick and easy to take out can be bad for our credit scores. In fact, a single salary survey can lower your score by up to 150 points. A better approach is to save your money and buy with your savings, which doesn’t affect your credit report.
- Make sure you pay your bills on time
Make sure you know your due dates for payments so you don’t hurt your credit report with an accidentally missed payment. Missing a refund can damage your credit report and credit score with refunds on most accounts now listed on a credit report for 24 months.
- Set up direct debits for your invoices
A great way to take the worry out of bills is to set up direct debit for your repayments.
This way, you don’t have to worry about missing a refund and destroying your credit report. You can also avoid direct debit payment fees, compared to paying by credit card which can have hidden fees.
- Contact your credit provider if you are having financial difficulties
Consumers have a grace period of 15 days to make a payment from the due date of the debts.
This means that if you know you can’t make your payment this month, you have some time to contact your credit provider. Call or email them to request temporary financial assistance that will protect your credit report from any negative repayment history information.
- Arrange loan deferrals if you need them
In 2022, many lenders are still offering deferred repayments. You can also request a temporary freezing of accounts for 3 to 6 months. Call your credit grantors or email them and ask for help, because making arrangements before difficulties can save your credit report for the future.
- Set aside savings if you can for emergencies
Most families live hand-to-mouth, so when a crisis hits, it’s hard to cope. Setting aside $50 a month can help if something unexpected happens, especially in today’s environment where there is so much uncertainty.
Beware of fraud
Many more consumers have contacted us recently because of fraudulent data on their credit reports. The deletion of this data is possible, but it takes between 4 and 8 weeks. Make sure your customers check their reports regularly and keep their personal online data secure. A great way to protect yourself is to use two-way authentication.
- Pay off your credit cards if possible
You can improve your credit report by lowering your credit card limits. Also, be sure to pay extra on your credit card so you can reduce your balance.
Feel free to share these tips with your customers today. Credit Fix Solutions offers a variety of educational materials for download from our website at https://creditfixsolutions.com.au. Or our BDMs Emilija Grubisic NSW|ACT, 0426 869 534, Mary Dagres QLD|VIC|TAS 0415 707 957, Sharmeen Rakhi WA 0415 530 293 are also available to help with your enquiries.