Bee Sure Financial

Credit is a liability, but it can be used effectively to improve your financial standing. Credit scores are determined by many factors – and improving your credit score isn’t too hard when you know how.  Credit scores have now become a basic part of life.  Credit reports are used in deciding whether you get insurance or employment; rent an apartment or buy a car; even if you can apply for a loan for a house or business. Banks and Non Bank lenders will often request a credit check while approving any housing loan.

Steps to Improve Your Credit Scores:

1. Fix Credit File Mistakes

One thing that can absolutely tan your credit rating is credit mistakes. Credit mistakes can include late payments, infringements or fines, which are placed on your Credit file. Credit companies who check your Credit Report will use this information to decide if they will lend you money or agree to provide credit facilities. If you spot an incorrect listings in your report, contact your creditor or the credit reporting bureau that you ordered your report through to have them removed.  If it is a mistake, they can fixing it with the credit reporting body. Reviewing your report periodically can help ensure there are no errors. Every now and then mistakes can happen during your credit report, particularly if you are mistakenly credited for a family member’s history or when there has been an identity theft case.  If errors ever show up, the first step is to dispute it with the bank or lender that reported it. Check your score online for free through Illion.

2. Don’t Miss Payments

Improve your credit score by following these steps: To improve your credit score, be sure to pay all your bills on time. This includes paying for utilities and other services you might forget about each month. This is a great way to boost your credit score and ensures you have a clean record. It will help you because it shows how you are doing. But be sure to make the bills in your name, so they show up on your credit report.

3. Catch Up On Past-Due Accounts

If you have any accounts that are past due, make sure that you pay them quickly. How it helps you improve: Credit bureaus look for a record of timely payments when calculating your credit scores. Longer-term accounts help you positively by making an account out of date and less meaningful to the calculation.

4. Pay Down Revolving Account Balances

One strategy you can consider is paying more frequently (monthly instead of every other month).  Also paying slightly above the minimum shows that you are actively trying to pay down the debt.  Consider paying a small monthly payment to reduce your debt. You can also pay more when you make payments to shorten the payoff time. If you pay off your credit card, then you will be able to plan and you can take control over your money. You will also have less debt.

5. Limit How Often You Apply for New Accounts

It’s best to apply for new credit no more than once every three months. Applying for many types of new credit too often can hurt your credit score. “New research finds that an alarming number of Australian’s are at risk with their barely-there savings.” A potential lender might perceive too many applications as a sign you are on the hunt for more credit and not great at paying back existing debt. In comparison to taking out new credit, which may negatively impact your score, a pattern of not applying for any new credit may appear as an effort to reduce your debts and increase the score. Opening too many credit accounts at one time can damage your credit report and hurt your score. Your credit score isn’t really concerned with how much money you make on a monthly basis – but instead is focused on whether or not YOU can manage YOUR debt compared to other people in similar circumstances who don’t carry debt.

6. Lower the limits on your credit cards

If you’ve set your credit limit too high on a card that you never get close to hitting, reconsider the limit. Keeping a good gap between what is owed and how much of the line of credit is used should be beneficial for your score. How it helps you: Not only will this help you reduce your debt, but improving and stabilising your financial situation can have a positive impact on your credit score too.

7. Demonstrate stability

Try not to move house or job too often as lenders want evidence that you’re a stable person. One way to increase your credit score is by staying at the same residence and workplace.

If you would like more information about how Bee Sure Financial can help you contact us today on 0434 113 962.

Have any questions?

info@beesurefinancial.com.au



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