{"id":3045,"date":"2018-01-03T05:11:43","date_gmt":"2018-01-03T05:11:43","guid":{"rendered":"https:\/\/raizinvest.com.au\/investors\/6-ways-to-improve-your-credit-score-with-minimal\/"},"modified":"2024-04-21T05:11:49","modified_gmt":"2024-04-21T05:11:49","slug":"6-ways-to-improve-your-credit-score-with-minimal","status":"publish","type":"post","link":"https:\/\/raizinvest.com.au\/investors\/blog\/6-ways-to-improve-your-credit-score-with-minimal\/","title":{"rendered":"6 ways to improve your credit score with minimal effort"},"content":{"rendered":"
\"image\"<\/figure>\n

Bessie Hassan | Money expert at <\/b>finder.com.au<\/a><\/b><\/p>\n

Whether
\nyou have a great credit score, a bad one or you\u2019re confused as to what the
\nnumbers actually mean, improving your credit score will shape your financial
\nfuture for the better. A good credit score can help you get a discount on your
\nhome loan or help you secure new finance.<\/span><\/p>\n

Here
\nare six ways that you can improve your credit score with minimal effort.<\/p>\n

 <\/p>\n

1)\u00a0\u00a0Check
\nyour credit report<\/h3>\n

Your
\ncredit score is based on the historical borrowing and repayment behaviour
\nlisted in your\u00a0credit report<\/a>. Checking your credit report on your own
\nwon\u2019t have any impact on your credit score. However, if a lender requests your
\ncredit report, it may leave a negative mark. This is why you should be careful
\nof how many lenders you approach for a loan, as it will often prompt them to
\ncheck your report.<\/p>\n

Checking
\nyour history yourself allows you to see what activities have affected your
\ncredit score, giving you a better understanding of what you should and
\nshouldn\u2019t be doing. You might also be able to find any mistakes that have been
\nmade by credit reporting bodies and take action to correct them.<\/p>\n

 <\/p>\n

2)\u00a0\u00a0Make
\nsure you have a borrowing and repayment history<\/h3>\n

Having
\ndebt doesn\u2019t sound like it would improve your credit score but a completely
\nblank credit report doesn\u2019t assure lenders that you\u2019re a responsible borrower.
\nIf you don\u2019t have any loans, it might be a good idea to start using a credit
\ncard, even if you only use it to pay for petrol.<\/p>\n

 <\/p>\n

3)\u00a0\u00a0Pay
\nyour bills on time<\/h3>\n

Once
\nyou have debt, it\u2019s important to pay it off on time. Missed or late payments on
\ncredit contracts such as credit cards, personal loans and home loans can
\nnegatively affect your credit score. Making the minimum payment on time will
\nshow healthy borrowing behaviour.<\/p>\n

To
\nmake this easier on yourself, set calendar reminders on your phone or computer
\nso that you don\u2019t miss a due date. If you\u2019re sure that you\u2019ll always have
\nenough in your account to pay your bills, try setting up a direct debit to
\nautomatically pay the bills when they\u2019re due. Also make sure to let any banks
\nor lenders know your new address if you\u2019re moving. That way, you\u2019ll prevent
\nyourself from missing your bills and having them listed as defaults.<\/p>\n

 <\/p>\n

4)\u00a0\u00a0Lower
\nyour credit limit<\/h3>\n

A
\nrecent survey from finder.com.au found that two-thirds of Aussies believe that
\nonly your credit utilisation ratio (that is, how much of your credit that
\nyou\u2019ve actually used) affects your credit score. However, in Australia, only
\nyour credit limit is recognised rather than how much you\u2019ve borrowed out of it.<\/p>\n

For
\ninstance, if your credit card has a $6,000 credit limit and you\u2019ve only
\nborrowed $1,400, the only figure affecting your credit score will be the
\n$6,000. Therefore, it\u2019s a good idea to lower your credit limit to $2,000, or to
\nwhatever credit limit is just enough for you.<\/p>\n

 <\/p>\n

5)\u00a0\u00a0Consolidate
\nyour debt<\/h3>\n

If
\nyou have several loans, consolidating them all into one account can make it
\neasier to manage your repayments. It will also reduce the risk of any negative
\nactivity on your credit report and it can help you save on fees and get you a
\nlower interest rate.<\/p>\n

 <\/p>\n

6)\u00a0\u00a0Check
\nyour credit score regularly<\/h3>\n

The
\nfinal way you can actively improve your credit score is to check it regularly.
\nGetting your credit score doesn\u2019t require much effort or time. All you need
\nto\u00a0access your credit score for free<\/a>\u00a0is your email,
\nname, sex, date of birth, driver\u2019s licence and your address.<\/p>\n

Once
\nyou\u2019ve made an account, checking your credit score is easy. Generally, your
\ncredit score will change every month if there is any new activity on your
\ncredit report.<\/p>\n

\u2014<\/p>\n

Ultimately,
\nimproving your credit score comes down to proving that you\u2019re a responsible
\nborrower that can make punctual and regular payments. Ensuring that you borrow
\nwithin your means and never miss a due date can almost definitely lead to an
\nimproved credit score.<\/p>\n

 <\/p>\n

\n

 <\/p>\n

Don\u2019t have the Raiz App?<\/h3>\n

Download it for free in the App store or the Webapp below:<\/p>\n

\n
\"download-raiz-app\"<\/a>
Click to download the Raiz app<\/a><\/figcaption><\/figure>\n

 <\/figure>\n

Important Information<\/strong><\/span><\/em><\/p>\n

The information on this website is general advice only. This means it does not take into account any person\u2019s particular investment objectives, financial situation or investment needs. If you are an investor, you should consult your licensed adviser before acting on any information contained in this article to fully understand the benefits and risk associated with the product.<\/em><\/p>\n

A Product Disclosure Statement for Raiz Invest and\/or Raiz Invest Super are available on the Raiz Invest website and App. A person must read and consider the Product Disclosure Statement in deciding whether, or not, to acquire and continue to hold interests in the product. The risks of investing in this product are fully set out in the Product Disclosure Statement and include the risks that would ordinarily apply to investing.<\/em><\/p>\n

The information may be based on assumptions or market conditions which change without notice. This could impact the accuracy of the information.<\/em><\/p>\n

Under no circumstances is the information to be used by, or presented to, a person for the purposes of deciding about investing in Raiz Invest or Raiz Invest Super.<\/em><\/p>\n

Past return performance of the Raiz products should not be relied on for making a decision to invest in a Raiz product and is not a good predictor of future performance.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

Bessie Hassan | Money expert at finder.com.au Whether you have a great credit score, a bad one or you\u2019re confused as to what the numbers actually mean, improving your credit score will shape your financial future for the better. A good credit score can help you get a discount on your home loan or help […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mi_skip_tracking":false},"categories":[1],"tags":[61,67,65],"yst_prominent_words":[3291,3292,3285,3281,3278,98,3295,3288,3279,3289,3282,3293,3284,97,82,117,166,125,239,3286]}