RW - foRWard Health & Wellbeing eMag - May 24 - Flipbook - Page 60
The Impact of Your Credit Score
A robust credit score can unlock
many doors, o昀昀ering access to
be琀琀er loan terms, lower interest
rates, and higher borrowing
limits. Conversely, a low score
might lead to loan rejec琀椀ons or
high-interest rates, a昀昀ec琀椀ng your
ability to 昀椀nance major purchases
or manage emergencies.
Checking Your Credit
Score and Report
In Australia, you’re en琀椀tled to a free
copy of your credit report once a
year from major credit repor琀椀ng
agencies like Equifax, Experian,
and illion. Reviewing your report
regularly is crucial for catching
errors or fraudulent ac琀椀vity that
could harm your score.
According to Finder data, the
older you are, the higher your
credit score is likely to be. Baby
boomers have an “excellent”
credit score on average, with
an average score of 846. Gen X
have an average credit score of
760, which is considered a “very
good” score, followed by gen Z
at 741 and millenials at 713.
Tips for Improving
and Repairing
YOUR CREDIT HISTORY
Improving your credit score doesn’t happen
overnight, but with pa琀椀ence and discipline, it’s
en琀椀rely possible. Learning how to build and
manage credit is important. Some universal
strategies include:
Pay Your Bills on Time:
Late payments can nega琀椀vely impact your credit
score. Se琀�ng up automa琀椀c payments or reminders
can help ensure you never miss a due date.
Reduce Credit Card Balances:
High credit u琀椀lisa琀椀on can hurt your score. Aim to
keep your credit card balances below 30% of your
credit limits.
Limit Credit Enquiries
Each 琀椀me you apply for credit, it’s recorded on your
report. Too many applica琀椀ons in a short period can
signal 昀椀nancial distress.
Diversify Your Credit:
A mix of credit types (e.g., mortgage, car loan, credit
card) can posi琀椀vely a昀昀ect your score, showing you
can handle various credit responsibili琀椀es.
Regularly Check Your Credit Report:
Review your report for errors or inconsistencies.
If you 昀椀nd any, contact the credit repor琀椀ng
agency to have them corrected.