Improving My Credit Score In Australia 2022
How I can improve my credit score,
in Australia. Hi everyone,
this is Pasha from CRS, and today we
will discuss how to improve your
credit score. Having a great credit score is becoming more
and more important, as interests continue to rise. you want to be able to get
the loans you need for example, for that property or refinance at the
lowest interest rate possible.
To enable you to get a
high credit score, it's valuable to understand
how the credit scoring system works. It’s not possible to
know precisely precisely how the credit reporting
bureau algorithms work, but there are some
consistent themes. That is, there are some factors
that help to obtain and maintain a healthy
credit score. Credit scores, is a rating system generally spanning between 0-1200. A very, very good credit score is around 700 and above.
A score hovering around 700 generally will allow you
to be able to be considered by
top tier lenders. And that's where you want
to aim to be within. To get a very good credit score you have to do well in all the following factors. A large factor is ensuring you make all your credit facility
payments on time, as repayment history information (RHI) is recorded on your credit report
for two years. Aim to set up direct debits to pay at least the minimum
repayments on time. Another factor is credit utilisation. maxing out all the available
credit to you can also negatively impact
your credit. Aim to keep your credit card use to at least 70% of the amount
of the eligible limit. If you consistently max
out your credit, not only does it lower
your credit score, but you would be demonstrating
that you are a risky person to provide
additional credit too. If you have credit facilities that
are a few years old and are under control, don’t close them unnecessarily.
If you ‘close’ that account, then the positive history you have
built gets wiped. Think of it as building a solid foundation
for your credit score. Minimise the number of enquires you do. I have more informative videos available
regarding this topic, should you want to expand your
knowledge about this further. However, in short, your credit score goes down when you make a lot of credit enquiries, especially in a short period of time. So, if you are looking at getting a
home loan for example, it’s worth looking at your options, and then applying for a home loan
with one lender. Everytime you use a
Buy Now, Pay Later service it can impact your credit report. And also, as they are
short term products, it does not allow you to
build that long term good credit history mentioned previously. At the time of this video, you are now eligible to check
your credit reports 3 times per year, for free. Until last year, it was only
once per year and then you had to
pay for it.
So now is a great time to
review your credit. One of the most important factors is removing any adverse entries like defaults (paid or unpaid), judgements or late repayment history (RHI) off your credit report. These adverse entries stay on your
credit report for 5 years. At Credit Repair Solicitors (CRS) we specialise in removing adverse entries
and inaccuracies where possible. So be sure to contact us with
the information below as we provide a no-obligation,
legal analysis of your credit report, and
service Australia wide. Hope you found this
information beneficial. Be sure to subscribe and leave a comment below for any questions.
Thank you..
