How To Improve Your Credit Score
Having a deposit may not be enough to get you a loan if your credit history is not good!
Lenders are ready to scrutinise your purchasing behaviour before approving a personal loan. Be ready to show your future lender 6 to 12 months of bank statements that will scrutinised from every possible angle.
Unfortunately, when it comes to credit rating, your word is just not enough for your lender. It is your responsibility to establish a perfect credit score before lodging your application.
Before you start to panic, if your expenditure in the past has not been ideal, there is time to introduce some disciplines into your day to day life that will prepare you for that loan application!
Your credit history reflects not only how you spend your money, but also how you approach other loan repayments, credit cards and timely payment of bills.
There are three major companies in Australia that produce credit scores, Equifax, TransUnion and Experian.
What Is A Credit Score?
A credit score is a three-digit number, typically between 300 and 850, designed to represent your credit risk, or the likelihood you will pay your bills on time. In general, a higher credit score represents a higher likelihood of responsible financial habits.
Each of the three larger credit reporting bodies use slightly different methods of calculating scores.