What Is A Credit Score & How You Can Improve It?
Your credit score is one of the most important pieces of information that lenders look at when deciding whether or not to lend you money. You can’t obtain a fast cash loan with us if your credit score is too low. It takes into account your financial history and helps to determine your borrowing power. Your score does not transcend countries (different countries have different criteria), hence your credit score could be completely different in another country.
In Australia, the two main credit reporting agencies are Experian and Equifax .
The higher your scores, the more likely you are to qualify for loans and credit cards at the most favorable terms, which will save you money.
How Is It Calculated?
Your credit report contains a summary of your financial history, and your credit score is a reflection of how reputable that history is. You are scored with a number between 0 and 1200 (1200 being the best)
How To Improve Your Credit Score?
If your credit history is not where you want it to be, you’re not alone. Improving your credit scores takes time, but the sooner you address the issues that might be dragging them down, the faster your score will go up. You can increase your scores by taking several steps, like establishing a track record of paying bills on time, paying off debt and taking advantage. Here are a few recommendations by Experian:
- Pay Your Bills On Time
You can positively influence this credit scoring factor by paying all your bills on time as agreed every month. Paying late or settling an account for less than what you originally agreed to pay can negatively affect credit scores.
- Pay off Debt and Keep Balances Low on Credit Cards and Other Revolving Credit
- Apply for and Open New Credit Accounts Only as Needed
- Don’t Close Unused Credit Cards
Keeping unused credit cards open—as long as they’re not costing you money in annual fees—is a smart strategy, because closing an account may increase your credit utilization ratio. Owing the same amount but having fewer open accounts may lower your credit scores.
- Don’t Apply for Too Much New Credit, Resulting in Multiple Inquiries
Too many hard inquiries can negatively impact your score, though this effect will fade over time. Hard inquiries remain on your credit report for two years.
- Dispute Any Inaccuracies on Your Credit Reports
Incorrect information on your credit reports could drag your scores down. Verify that the accounts listed on your reports are correct.
Get Credit Score recommends these ways to improve your credit score
This video from Finder will give you a better idea