An important score to be aware of

Written by Ronald Pratap

on October 4, 2017

From a university entrance exam to the premiership match for your sports team, there are a few critical tests in every person’s life where the final score can feel like a make or break moment. But there’s one important ‘game’ that many Aussies aren’t even aware they’re playing. And unlike the final tally when you’re out golfing, you want your score to be as high as possible. That’s right – we’re talking about your credit score. 

What is a credit score?

Your credit score is a number that represents your creditworthiness. It’s something that banks and other lenders use to determine your eligibility, how much you can borrow, and at what interest rate.

How do you access your credit score?

If you don’t know what your score is, or you’ve never seen your credit file, you can look it up now for free. Under Australian law, you are entitled to check your credit report for free once every 12 months. It’s a good idea to check it on a regular basis to ensure that the information on your record is correct and that you are aware of any issues affecting your ability to get credit which may include identity theft, where other people use your personal information for financial gain.

What counts towards your credit score?

Credit agencies take lots of things in to account when they’re calculating your credit score. Your credit file is a record of all the arrangements you have had with different suppliers or lenders where you’ve been given credit in some form or another. For example, your file could include your utility providers, phone/internet contracts, personal loans, and more. Your file will also generally list applications you’ve made.

If you’ve ever been seriously late with repayments or defaulted on a loan, that will be there too. The good news is that these black marks don’t affect your credit score forever. Repayment history info sticks around for two years, defaults for five years, and overdue accounts listed as ‘serious credit infringements’ last seven years.i

Is it possible to improve a credit score?

If you’re worried about future plans to borrow money for something important, like buying a home or starting a business, there’s some good news. It’s possible to improve your credit score.

The first thing you should be aware of is that some companies out there claim to offer ‘credit repair’ services, where they’ll ‘fix’ your credit score. Keep in mind, the only way your score can be changed immediately is if you’re able to prove that something negative on your file is incorrect, so be wary of any service promising miracles.

Aside from that, there are a few things you can do to improve your credit score (or keep your current high score). If you are new to the world of credit it’s important to develop a credit history so that lenders have some assurance that you are a responsible borrower. You could start by opening a mobile phone or internet account, registered to your name and address.

Be aware that applications for credit are not viewed favourably and do take points off so only apply for credit when you are confident of getting approval.

The most obvious way to improve your credit rating is to pay bills on time. If you’re always forgetting due dates, consider setting up direct debit arrangements. Be aware that any payment defaults show up so it’s worth being proactive in negotiating a payment plan if you are experiencing financial hardship.

Finally, ensure that incorrect details or fraudulent activity in your name is not bringing your score down. Jump online and check out your score now; it could save you a lot of financial heartache in the future.

 

 

 

i https://www.equifax.com.au/personal/articles/how-long-does-information-stay-my-credit-file

Ronald Pratap

Principal Financial Planner at RP Wealth Management | Financial Planning l SMSF I Insurance l Property Advisory. Our purpose is to provide our clients with sound advice and direction to assist with their financial affairs and help them make the best choices in achieving what is important to them.

Latest Posts

December Market Update

December Monthly Market Research Update

December 7, 2021
cryptocurrency_mining_ato_guidance_wealthaccumumation_moneymanagement_rpwm

So how does the ATO treat Cryptocurrency

December 7, 2021
superannuation_smsf_financialadvice_financialplanning_retirement_rpwm

Choosing a good super fund

December 7, 2021
What Clients Are Saying About Our Financial Planning Services
Ron and team are very professional, patient and very transparent.Very happy to have found Ron and working on my needs.
Vinodh Kumar Ravinder
Vinodh Kumar Ravinder
17:52 24 Feb 21
Ronald is very informative and professional and I have no hesitation to recommend him highly.
Chris Bakalian
Chris Bakalian
04:30 02 Jun 20
Ron and the team are extremely professional and knowledgeable, complimented by exceptional customer service.
Michael Ferella
Michael Ferella
04:11 27 May 20
Ron was able assist my husband with all the necessary information from start to finish with his plan. We found Ron extremely easy to get along with and communication was outstanding. As a family we can high recommend Ron to all.
Chloe Farnell
Chloe Farnell
04:01 02 Apr 20
Ron has been amazing for me and truly took the time to understand what my real needs and wants were to custom tailor not only my super and retirement plans but the options to diverse my investing to meet short term goals.He’s very relatable and down to earth so the whole process is enjoyable. Looking forward to working together in the many years ahead.
Shannon McDonnell
Shannon McDonnell
00:29 20 Feb 20
Ron is honest, intelligent, trustworthy, and hardworking adviser. Always goes above and beyond to ensure he gets the best outcome for his clients. Highly recommended!
Petra Novakova
Petra Novakova
12:25 06 Feb 20
Ron is amazing!! He is so easy to talk to and explains things so you can understand everything. If we had any questions about anything he was always there to answer our questions. Definitely recommend him.
Jessica Tree
Jessica Tree
09:05 11 Oct 19
Ronald is a great person to deal with...explains everything very clearly and goes through all your options...looks out only for his client not any personal gain..I feel confidence that my wealth management and finances are handled correctly with his guidance
Jordan Mijalkov
Jordan Mijalkov
07:57 24 Sep 19
Insurance within super and the whole superannuation mindfield is made simple when you enage with people who know their stuff.I highly recommend Ronald, he is flexible, committed and focussed on helping you to understand and have confidence in this arena.
Sandra Bartlett
Sandra Bartlett
04:50 29 May 19
Ron and his team have a wealth of knowledge in the industry and have referred relatives and clients, whom have been satisfied with his service to ensure that they are adequately protected.
Daniel Caldwell
Daniel Caldwell
22:24 07 May 19
I have referred many clients and used Ronald's financial planning services personally and couldn't recommend him highly enough. Very professional and knowledgeable in the financial services industry. I would not hesitate for a second to recommend Ronald’s services to anybody within my network.
Bradley Durrant
Bradley Durrant
03:22 03 May 19
Have had a great experience, have felt all meetings and communication to be very informative and honest in areas I was uncertain about.
Josh Saumatua
Josh Saumatua
08:34 22 Jul 18
Very knowledgeable and informative. Happy to answer all questions and always responds to my calls/emails. Takes control which makes for a simple and seamless process.
D Saumatua
D Saumatua
12:24 20 Jul 18
Ronald is so easy to deal with and helps you every step of the way to make it so efficient and quick to fill out paperwok. He is very professional and makes it all happen so quickly. He always picks up the call or gets back to you, What else can you ask for. Great guy and service
Mibu Medispa
Mibu Medispa
08:08 16 Jul 18
Very professional and consistent in his work with truckloads of knowledge in his industry. He helped me with my life insurance and did a fantastic job from start to finish. Walking me through the entire process and always following me up. I would not hesitate for a second to recommend Ronald’s services to anyone. Great guy. Great professional. Great service.
Caterina Romeo
Caterina Romeo
01:07 18 Apr 18
I met Ronald in a professional capacity, and his willingness to share his insights and his enthusiasm for the work that he does clearly shines through. I'd highly recommend connecting with him if you're looking for an adviser who holds great integrity in the way they support their clients.
Shannyn Merlo
Shannyn Merlo
08:32 23 Feb 18
Great service and very helpful
Dragan Jelic
Dragan Jelic
01:25 27 Oct 17
Ronald is great communicator and very knowledgable with his financial advise. He helped my wife and I structure a better protection plan covering life insurance, trauma cover and income protection. Easy to discuss any questions we had and generally very helpful. I highly recommend talking with Ron!
James Newman
James Newman
03:38 25 Sep 17
Ronald is a really easy going guy to deal with. He will go above and beyond to ensure he finds out all the details and gets you the best cover for your circumstances. Ronald made the process of getting Trauma Insurance and Life Insurance very easy - much easier than I thought and it was surprisingly cheaper than I thought it would be too. I really recommend you see RP Wealth Management.
Hayley Pieplenbosch
Hayley Pieplenbosch
05:55 28 Jul 17
I needed general financial advice and he delivered with the lingo I easily understood. Friendly guy and always approachable. Would highly recommend him to anyone!
Gorgi Serovski
Gorgi Serovski
13:09 22 May 17
A hard working and diligent professional, Ronald certainly places his clients needs first in all situations. Keep up the good work!
Shaun Pereira
Shaun Pereira
00:14 19 May 17
My Wife and I have known Ron for many years. He has always put our needs first and has always given 110% with giving us the best advice,solutions and above all exceptional results with our super and investments! Highly recommend Ron to anyone in need of financial guidance."I found Ronald to be very knowledgeable about all aspect of finance and being very helpful in overseeing my finances and making sure that I will live comfortably for quite a few years to come. his friendly nature comes from deep down and his clients are treated like family. I will not be afraid of recommending Ronald to all my relatives and friends."Thanks mate. Really appreciate it.
Deniz Sertlioglu
Deniz Sertlioglu
03:09 03 Jan 17
We've Been Featured In
Industry Recognition

TAL Rising Star Financial Planning finalist 2016

RI Advice Excellence award Finalist 2014

Subscribe To The RP Wealth Management Newsletter
You’ll receive the latest information about our business, services, new offerings and our marketing communications.
Book Your Consultation
Are you ready to secure your financial future today?
Get in touch with us to develop your strategic plan and achieve peace of mind.

© 2021 RP Wealth Management | Privacy Policy