Improve Your Credit Score Using a Few Simple Steps

Due to the double-dip recession that dragged our bankers through the muck, they are now becoming stingy about who they lend money to. If you don’t have an angelic credit history, you might find yourself unable to attain a mortgage. Now is the time to give your credit score a boost, with a few, simple tactics that will make you more attractive to the big banks.

Be a Voter

Strangely, if you are on the electoral roll, a bank is far more likely to lend you money. This is something banks use to protect themselves from fraud and check your identity, as it proves you are who you say you are - it’s easy to enlist and update your details online.

Create a Good Credit Rate

Six months before you plan to apply for a mortgage, take out a credit card. Always pay off the monthly charges without fail and you’ll get yourself a great reputation. This is risky, however, if you struggle to make payments. Credit cards can be a one-way-ticket to debt and an even worse credit score if you don’t resist temptation well or aren’t so great with money. Misuse and abuse your credit card and you’ll have to say goodbye to car loans Australia or a mortgage.

Cancel Out of Date Credit Cards

To get the best rates, people often hop from one credit card to another. However, failing to cancel old credit cards can be a huge mistake, as these credit cards will still appear on your file, and lead to banks wondering just how large your debt really is.

Check The Facts

Study your file and make sure that all the information is up-to-date and correct. Mistakes do happen, and you may be held accountable for information that needs updating.  If there is something wrong on your file, contact Experian or Equifax straight away to get things rectified. Keep an eye out for the tell-tale signs of identity fraud too.

Be Consistent

Double check, in all your applications, that the facts are correct. If a bank spots inconsistencies in your application form, they may take it as attempted fraud.

Leave No Openings

When shopping around for loans, credit cards, or mortgages, make sure that you don’t let any old company go through your credit history. People accessing your credit details actually counts against your credit score, so don’t allow businesses to do so, unless absolutely necessary. Lenders see this as a sign that you’re desperate for credit, and it makes them nervous.

Always Go Into Detail

Don’t be shy about discussing your previous credit issues at length, especially if they were due to a particular issue, such as divorce. You can explain why you fell on hard financial times and provide proof that you are now in a good fiscal position.
If you’ve been a victim of fraud in the past, make sure that the credit problems have been removed from your history. If you didn’t cause these financial issues, they should not show up on your file.

This article was written on behalf of Fincar, car loans Australia


  1. Improving your credit score is a long, sometimes difficult process, but working with a money manager can help you get your finances in order so you can get started.

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