How can borrowers maintain a healthy credit report?
A healthy credit report is an important step towards financial health.
Healthy credit report will make it attractive to credit providers when borrows need money or buy something on credit. Most Australian adults will look to borrow money or buy something on credit every so often. Whether it is a loan to buy your first home (or your next!), credit card or a new mobile phone on a post-paid contract, credit providers will access your credit report to decide, whether you’re creditworthy.
Here are some good tips to keep your credit report healthy:
- Don’t let forgetfulness make you miss payments. Talk to your credit provider about setting up a direct debit, to ensure your minimum payments are paid on time. While, forgetting a payment shouldn't impact your credit health too much. However, it can start to make you look worse to credit providers if you fall behind regularly.
- Talk to your credit provider if you are struggling to make your payments. Many lenders & other businesses that sell things on credit (e.g. phone, gas and electricity companies) must work with you, if you tell them that you are struggling with your payments.
- Keep your details up to date with your credit providers. They’ll send account statement, bills to the address that they have on your file. If you change your address without telling them, you might not know that you owe them money and it could end up as a default on your credit report.
- Only borrow what you need, use credit wisely & sparingly. Having too much credit could make it harder to get credit for what you really need. If you have more credit than you can comfortably afford, close down any accounts that you don’t use. Your credit report will show credit providers how much credit you have available, even if you don’t use it.
If you have any questions or need more clarification on the above, please contact Sam on 0414 963 626 at Easy2Mortgage for professional advice.
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