If you have a few credit cards in your wallet, have fallen behind on the occasional bill payment, or have recently made a few personal loan applications, you may be creating a credit reputation…and not in a good way.
Nearly 80% of Australians don’t know their credit score — apparently — (Credit score advocate, Credit Savvy, told us). Your credit score is a number that represents your credit worthiness and lenders can use it to determine if you’ll be able to repay a loan in the future.
Credit Savvy’s Managing Director, Dirk Hofman, is urging young Australians to take a minute to find out their credit score and be savvy about their financial behaviour. “One of the best ways of proactively 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 actions might be affecting your credit score,” Mr Hofman explained.
Five key tips for a better credit record
1. Pay your bills & loan repayments on time2. Don't apply for too much credit in a short time frame
3. Stay away from specialty finance providers like payday lenders
4. Be patient – it takes time to improve your credit health
5. Sign-up to www.CreditSavvy.com.au to track your credit score for free
