Over 1.5 million defaults are listed on the credit files of Australians. Some of these are genuine defaults and some are products of a lost bill, a dispute or a mistake.

Individuals with paid or unpaid defaults on their credit file are severely restricted in their ability to borrow. Some loans are completely out of their reach while others are far more expensive and require a greater level of security.

It is no wonder that Australians are looking for legitimate ways to clean their credit history and Repair their Credit standing.

Credit Repair is the process of removing bad credit entries off you credit report if these entries have been placed there through fraud or error.

Steps Involved

1. Obtain a copy of your credit report to identify the problem entries on your report.
    
2. If the report has any errors or items that you hold no responsibility for, contact the credit reporting agency to have these items removed. You may be asked to provide various forms of evidence to support your claims. These will need to be collected if and when required.
    
3. If the report has any unpaid defaults for which you are responsible, make sure these are paid ASAP. It takes some years for these defaults to com off your report so the sooner they are paid the sooner this will occur.

Credit providers view a clean credit report more favourably than one that has defaults listed. A clear credit report will guarantee you the best available loan deals when borrowing money. If you do not have a clean record your options are more limited.

Repairing your credit can only really be done in a logical step-by-step manner. If you don't approach credit repair in such a way debts can easily grow out of control and become worse.