Find out some of the reasons behind the highs and lows of a credit score.
Many of us know we should pay our bills on time, but did you know that making too many credit applications in a short time frame could negatively impact your credit reputation?
That’s just one of the scenarios this infographic created by Credit Savvy considers. It visualises how your credit reputation could be affected by a range of factors – including some you might never have considered!
This financial year, we are likely to start seeing lenders opting in to comprehensive credit reporting. In other words, for the average Australian, this means more information about your credit arrangements and credit history can be shared between lenders – yet another reason to care about your credit score and proactively manage your credit reputation.
One of the best ways of monitoring your credit reputation is to track your credit score and check your credit file regularly. That way you can take steps to correct any errors and also understand what might be affecting your score.
Here are some handy hints:
- Pay your bills & loan repayments on time
- Don’t apply for too much credit in a short time frame
- Stay away from specialty finance providers like payday lenders
- Monitor your credit score over time
- Check your credit file for errors that may be unfairly impacting your credit reputation
- Be patient – it takes time to improve your credit health
Do you have any questions about credit scores? Let us know what it is in the comments below and we’ll do our best to answer it.
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