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]


Comments

    Glad to see this article is Australian and actually relevant. Thank you.

      It may contain Australian content but it is just an advert.

      This is in no way an article and it would be great if they clearly marked adverts.

      Last edited 09/12/16 9:31 pm

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