It’s interesting how many people still don’t understand that financially speaking, your clean credit score is your greatest asset.

Every day we receive dozens of inquiries from Australians looking for an unsecured personal loan or mortgage refinancing. People simply do not understand why a default, which is now paid, continues to affect their ability to borrow. In fact, a paid default will remain on an Australian’s credit report for a period of 5 years. Therefore, any loan application that person makes during a 5-year period will be considered Bad Credit Applications.

We live in a very lenient society and people have a ‘lazy’ attitude towards their bills and make sure they make their payments on time. Often a customer will say, yes, we always pay our bills, but we’re always a little late. This is much more serious than you think.

First of all, despite all the hype you may see in the media, it is almost impossible for an Australian to get an unsecured personal loan if they have a history of bad credit. Even a small paid credit card default will result in a decline. It doesn’t matter if the breach was his fault, if he was sick at the time, if the bill was lost in the mail, etc. Once a default finds its way to your credit report, the only way to qualify for a personal loan is to do everything you can to have the default removed.

If, in fact, the credit problem was the result of a lost letter, an error from your credit provider, identity theft, or something else beyond your control, your best chance of addressing this problem is to try to remove the entry. bad credit of your credit. report. To do this, you must contact the provider that placed the noncompliance on your report and explain the circumstances that led to your noncompliance.

If you can convince the credit provider and remove your default, you will be able to reapply and qualify for a personal loan. If you fail to remove a default from your report, you will be ineligible for unsecured financing for a period of 5 years.

Many Australians are blissfully unaware of this and cannot borrow even relatively small amounts for a rent, furniture or education bond. There will certainly come a time when children are taught the basics of credit history in school. Until then, articles like this should be published to educate the unwary.

If you want more information on how to clean up your credit or apply for a bad credit refinance, you can learn more by researching online.