Getting up to speed on most things including credit scores and credit reports is something that you should always be thinking about. Your credit score affects your whole life in Australia, including your credibility, sense of responsibility, and reliability. Creditors and lending companies like banks, house mortgages, and even bad credit car finance often check your credit score and report upon application and approval.
When you have a bad credit score, it automatically shows up on your credit report. This can often lead to your loans being denied, as this can mean that you are not credible and responsible enough.
Research found that a whopping 65 percent of Australians are often misinformed about credit reports. They are not usually up to speed on why and how credit scores and reports are important, which is a little bit alarming. A huge percentage of this number constitutes the millennials, which are usually between the ages 18 to 29. Many do not get the concept of credit score and credit reports, and this is certainly alarming simply because these things are extremely important to take note of.
Here are some of the most common misconceptions about credit scores and reports in Australia:
A Pay Increase Will Boost Your Credit Score
Many Aussies think that having a pay raise automatically boosts their credit score. It definitely won’t, but it may increase your chance on getting a loan.
Requesting My Credit Report Costs Too Much
Actually, it won’t cost you anything. It’s totally free, all you have to do is go to Credit Simple’s website, sign up, and that’s it! It won’t take long, it will actually take you 60 seconds, more or less!
I Might Get Called Out for Checking My Credit Score too Often
You have the right to know your credit score. Check it whenever you like, you can even use the internet for that! You will not be penalised for doing such, as long as all you are doing is checking it. However, requesting for a physical copy of your credit report might cost you a few dollars, so make sure to request for a hard copy only every once in a while.
My Credit Score Would Not be Affected Even if I Apply for Multiple Loans
Sure, you can apply for multiple loans and credit cards, as long as you do not do it all in a short period of time. Getting declined will affect your credit score, so make sure to apply for loans and cards that you are confident you are going to get approved. Also, see to it that you can pay your bills on time, as late payments will cause a serious dent on your credit score.
Being Too Carefree
Do not be too confident and nonchalant about your credit score, as this can lead to your credit report being off track. Research shows that almost 2 out of 3 in 2,000 Australians had a below average credit score, which is quite alarming. 29 percent of this population are millennials, and it is said that they usually overestimate their credit score. Make a change by getting a copy of your report today, and focus on the things that you should be improving.
With all of these in mind, we hope that you would give more importance to your credit score and report. Step up by being more wary of it, start today, and tell your family and friends about it.