In Australia, any lending institution will check your credit rating to determine your ability to pay a new loan or credit card or even if you want to increase a loan amount or credit card.
Here are our top 3 list on keeping your credit rating healthy :
1. Check your credit rating once a year
Each year, you are able to request a free copy of your credit rating (you may need to wait up to 10 days to receive it). If you want it faster, then you may have to pay for it.
Once you receive your credit report, check that all loans or debts listed are yours and check that your details (name, address, DOB etc.) are correct. If you find that something is incorrect, you can have it updated for free. However, this is only free for inaccurate or out of date listings.
See here for a list of the credit reporting agencies where you can access the credit report.
2. Limit your credit applications
Each time you make a credit application, it ‘can’ negatively affect your credit rating. Perhaps you lodged an online application to request a loan or credit card. Every request you make – this will cause a credit check to be done.
As part of the credit rating report, credit providers are able to see how many requests for credit you have made. If you have made one too many recently via various lending institutions – someone will probably ask the reasonable question, “What are you doing?”
3. Pay on Time
The simplest way to ensure that your credit rating is healthy is to pay your bills on time and meet your loan repayments. This ensures that when a lending institution checks your credit rating, you don’t flag as a risk.
To see more, visit https://www.moneysmart.gov.au/borrowing-and-credit/borrowing-basics
Tags: credit rating