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Boost your credit rating by following our tips below!
When you pay an overdue debt, the negative listing doesn’t disappear until after seven years have elapsed. Paying your bills on time and meeting your loan repayments is the simplest and most effective way to improve your rating.
In order to establish a history, you need to have a form of credit. Credit cards are easier to apply for than loans. Sign up for one with a small limit (to make small purchases and re-payments on time).
Get in touch with all your service providers (banks, utilities, internet service providers) to make sure your bills are redirected to your new address. If you don’t it can be seen as a ‘clear out’ and possible deliberate debt evasion.
According to the office of the Australian Information Commissioner (2013), 30% of Australian’s have errors on their file. Jump onto veda.com.au and check your score. If any information listed there is incorrect, contact the relevant provider and seek an amendment.
Improve your score by eliminating small balances on existing cards. These balances although they are small, can be polluting your credit report.
The longer your lines of credit are open, the better the rating.
If your card issuer forgot to mention that they increased your limit, request that this be removed to avoid any unmanageable debt.
Too many credit applications can damage your rating. Do your research ahead of time and minimise the amount of applications you’re making.
Aim to keep your credit used below 30% of your available credit. In doing so, you’re effectively boosting your credit history.
The advice in this article is of general nature. To solve specific issues or to put a personalised plan in motion, speak to us today!
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Important information and disclaimer
This publication has been prepared by Leigh Stafford, Penny Collicoat, Little Miss Stonnington Pty Ltd (trading as Edge FP) Authorised Representative(s) of Apogee Financial Planning Limited ABN 28 056 426 932, an Australian Financial Services Licensee (“Licensee”), Registered office at 105 –153 Miller St North Sydney NSW 2060 and a member of the National Australia Bank Limited group of companies (“NAB Group”). Any advice in this publication is of a general nature only and has not been tailored to your personal circumstances. Accordingly, reliance should not be placed on the information contained in this document as the basis for making any financial investment, insurance or other decision. Please seek personal advice prior to acting on this information. Information in this publication is accurate as at the date of writing (July 2015). In some cases the information has been provided to us by third parties. While it is believed the information is accurate and reliable, the accuracy of that information is not guaranteed in any way. Opinions constitute our judgement at the time of issue and are subject to change. Neither the Licensee nor any member of the NAB Group, nor their employees or directors give any warranty of accuracy, not accept any responsibility for errors or omissions in this document. Case studies in this publication are for illustration purposes only. The investment returns shown in any case studies in this publication are hypothetical examples only and do not reflect the historical or future returns of any specific financial products. Any general tax information provided in this publication is intended as a guide only and is based on our general understanding of taxation laws. It is not intended to be a substitute for specialised taxation advice or an assessment of your liabilities, obligations or claim entitlements that arise, or could arise, under taxation law, and we recommend you consult with a registered tax agent. If any financial products are referred to in this publication, you should consider the relevant Product Disclosure Statement or other disclosure material before making an investment decision in relation to that financial product. Past performance is not a reliable guide to future returns as future returns may differ from and be more or less volatile than past returns.