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]