How To Increase Credit Score In Australia?
Are You thinking about applying for a personal loan or credit? Then you should make sure that your credit score is in order. A Good credit score is a major factor in taking a loan. There are many reasons that can decrease your credit score. Avoid these things below. It can decrease your credit score.
- Not paying bills on time.
- Missing on loan repayment
- Too many applications for credit
- Any notice from the court on financial payment
- Defaulting a loan
All over we have shared the basic reasons for decreasing your credit score. Keep trying to avoid these things.
Below we have shared what you should do to increase your credit score.
Get a copy of your credit reports
In Australia, the first thing you have to do is get a copy of your credit report. There are many numbers of credit reporting bodies like Equifax, Experian, CheckYourCredit, etc. You need to contact me to do this.
As a general rule, In Australia, you can request your credit report once in every 12 months.
Make sure there aren’t any errors
After receiving your credit report you need to ensure that there aren’t any errors. Because sometimes lenders or banks record wrong information that has already been resolved.
If it happened to you then you need to contact them to ask to remove the wrong listing. If there is a deep mistake then the bankers or lenders will get in touch with the credit reporting body so they can remove the error from your report as well.
So always try to clear your credit report, it will help to increase your credit score.
Pay off any outstanding debts
Your unpaid debt can deteriorate your credit score badly. So, If you have an unpaid bill that you haven’t paid, put it at the top of your priority list.
In Australia, if your bill amount is $150 or more and 60 days have passed since the debt collector contacted you then it will be listed as credit default and it will stay on your report for 5 years.
Even if you pay it off, it will still stay in your report. So it’s best not to let it get your credit score to that point and pay off your outstanding debts on time, it will increase your credit score.
Pay Your bills on time
You need to pay all your debts, and credit product applications on time. It will give you an opportunity to win the lender’s favor if you are responsible with your money.
Always remember that you can’t undo your past mistakes and lenders are always checking if you are on the right track.
So try to Pay your bills on time, that will increase your credit score.
Minimize New Credit Applications
There is a reason you should not apply for too many credit products in a short period of time. Because all time you do this you rack up what’s known as a ‘hard inquiry. And all will be recorded in your credit report. A single hard inquiry is not anything to worry about.
If you made too many in a short period of time then it will send a message to lenders that you are financially reckless or desperate for credit.
So try to avoid these kinds of shits, it will increase your credit score.