There are a number of reasons why your finance application may have been declined, but one of the most common is bad credit. If you have defaults, court judgements or fraudulent enquiries on your credit report, this can all cause lenders to view you as a high-risk borrower and reject your application.
What is bad credit?
When somone refers to ‘bad credit’ they are referring to things such as credit defaults, court judgements and fraudulent enquiries. These listed on your credit report create a negative credit file or ‘bad credit’ and can cause you to be declined finance. This also lowers your credit score which can make it even more difficult to get approved for any loan or credit application.
Yes, bad credit can cause you to be declined for finance in Australia.
We understand how frustrating and stressful this can be but our team of credit repair experts can help you by removing these listings from your credit report, so you can improve your chances of being approved for future finance applications.
What cannot be removed from a credit report?
We cannot help with certain things, these include:
- Credit defaults that have been listed correctly and the client did not pay on purpose
- Enquiries that are legitimate and were made by the client
- Any previous address information or identity information
We make sure we are able to fix your credit report before accepting you as our client, this is done through an investigation into a copy of your credit report to determine what exactly is listed on your credit report and whether or not we are able to clear it. Once we accept you, we will work hard to remove any and all negative listings on your report and clear credit. If we are unsuccessful in helping you clear your bad credit, you will receive a full refund of our one set fee.
Does declined finance from bad credit impact your credit score?
Your credit score is one of the most important factors that lenders look at when considering a loan. A bad credit score can lead to your finance application being declined which in turn, can also drop your credit score more. Being declined finance from bad credit does drop your credit score. However, there are a number of ways to improve your credit score. These can include:
- Limiting your credit applications and enquiries
- Ensuring all accounts are paid on time and you have no late repayments
- Removing any defaults
- Removing any court judgments
- Checking all identity details are up to date
If you have discovered you have bad credit or a low credit score the first thing to do is check your credit report. This can be done by visiting any of the credit reporting agencies websites in Australia which include; Equifax, Illion and Experian.
After obtaining your credit report, it is good practice to read through it and ensure all the information is correct. If you do discover bad credit or negative information on your report, that is when you contact a credit repair company like the team at Clear Credit Solutions.
