What’s a Girl with Bad Credit to Do?
Hi Scott,
In my early twenties I had a drug addiction which resulted in me having my car repossessed and taking out huge loans I could never repay. Three years on, I am in a reliable job (earning $55,000 p.a.) and have paid off all my debts. However, as you can imagine, I have terrible credit. I want a chance at buying a house, but what’s a girl with bad credit to do?Please help!
Tegan
Hi Tegan,
You’ve been able to beat drugs and you’ve been able to repay your debts, so I have no doubt you’ll eventually buy your own home. You’re a fighter!
I’d suggest you grab a copy of your credit report (go to www.checkyourcredit.com.au and following the links to get a free file sent out in the post) and make sure any debt you’ve repaid is marked as ‘settled’. If not, you can ask your creditor to do it for you.
Honestly, though, there’s no way to ‘clean’ your bad credit file, despite what those dodgy ‘credit repair’ companies claim. It’s really a waiting game: overdue accounts and defaults drop off your file after five years, while more serious matters last for seven years.
What’s done is done. Instead, focus on increasing your income and boosting your savings. You’ve got this!
Scott