All The Ways Bad Credit Affects Your Life [Infographic]

As we march forward into a new financial year, many Australians are beginning to wonder what their credit reputation is like — something that isn’t always 100% clear. This infographic from Credit Savvy breaks down the dos and don’ts that can affect your credit rating over the course of a year.

The below infographic was produced by Credit Savvy in a bid to teach Aussie consumers about how their behaviours can positively or negatively impact their credit score in a given year.

“This year, we expect to see lenders opting in to comprehensive credit reporting,” Dirk Hofman, managing director at Credit Savvy said in a statement. “For the average Australian, this means that more information about their credit arrangements and credit history can be shared between lenders, which makes active management of your credit reputation a priority.”

The infographic charts an imaginary year in the life of a typical Australian — with examples of how both good and bad credit accumulates. Some of it’s pretty obvious (not paying bills can affect your credit score) while others may surprise you (being a victim of identity theft could lead to credit applications being recorded that you had nothing to do with.)

If you’re worried about your credit reputation, you can request a free credit score review from Credit Savvy. In the meantime, check out how “Jake” fared in the last financial year below.

If you prefer easily-digestible lists to winding infographics, Credit Savvy has also supplied the following steps that will improve your credit rating in short(ish) order:

• Pay your bills & loan repayments on time
• Don’t apply for too much credit in a short time frame
• Stay away from specialty finance providers like payday lenders
• Monitor your credit score over time
• Check your credit file for errors that may be unfairly impacting your credit reputation
• Be patient – it takes time to improve your credit health

[Via Credit Savvy]