Keep Your Credit Report Healthy

by TK

Credit report is a document records your credit history from how many times you applied for credit and which loans were opened, your repayment history, defaults and how much loan you have available.

Therefore, whether it’s your first home loan or the next, new mobile or post-paid contract, or a new credit card, the credit provider will access your credit report. A healthy credit report can make you more creditworthy to the credit providers such as banks, credit union or finance companies.

Here are few tips to keep the most important report healthy!

Find out whats in your credit report

Most Aussies never checked their credit report. However, it’s important to know what’s in your credit report. It will help you to better understand and take control over it. Usually most of the credit reporting body will give you a free copy once in a year.

Track your credit score

It’s like a summary in numeric that represents your credit position. The higher the score, the lower the risk will be and better prospect for getting credit. Tracking this score will help you to understand how your actions are helping to improve your credit health.

Don’t forget to make repayments

Well this is where we usually stumble. Delaying one repayment may not totally impaired your credit report but it will be there and the credit provider may consider it before approving your credit. Try to set up automation such as direct debit to pay the minimum amount on time and refrain if you fall behind on regular basis.

Talk to your credit provider if you are really struggling

Many credit providers and other business that sells goods on credit like phone, gas and electricity company may help and work with you if you inform the your struggle.

Be reasonable with credit

Try to use your credit wisely and borrow up to which you need. It is wise to close down all the accounts that you don’t use. The credit report will mention the credit amount available you to use.

Remember, the information on your credit report should be accurate, up-to-date, complete, relevant and not misleading. You can also ask your credit provider or credit reporting body to fix errors if any in your credit report.

Note: *The above information provided is general in nature. It is not to be relied upon as personal financial advice. As it has not considered your personal circumstances, needs or objectives.

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