04 Jun 2020
Trying to get a loan but have a bad credit score? There are steps you can take to stop your past from impacting your financial future. Learn more here.
Worried about your credit score? From increased interest rates to rejected loan applications, the consequences of a bad credit score can impact your financial freedom in a range of ways. If you've made mistakes with money in the past and have a less than perfect credit history, there are steps you can take to improve your credit score. It may take time, but everyone has the potential to make up for financial missteps.
Different countries follow various procedures when it comes to credit ratings, but here's how to improve your credit score in Australia.
Falling behind on household bills is one of the quickest ways to wind up with a bad credit score. Late or missed payments will send your credit score spiralling, which is why it's crucial to pay on time. Credit scores work like a grading system, so every time you fail to pay a bill (or pay it late), your score will be impacted. Paying a few days late once or twice won't seriously damage your credit score, but making a habit of falling behind on bills could have a lasting impact.
If you're short on money and can't pay on time, always contact your lender or service provider so they're aware of the situation. They might not be willing to negotiate on the payment date, but taking the initiative and reaching out to them may help your situation.
Or you could just take out a small cash loan to pay your bills and get back on top of your budget.
Knowing where you stand financially is essential if you want to improve your credit score. After all, how will you know your score needs improvement if you're not sure what it is? Whether you suspect your credit score may have taken a few hits or you're confident your financial history is flawless, it's worth taking a look.
You can find out your credit score by contacting a credit reporting agency, such as Equifax Australia or Credit Savvy. Working with these agencies and others like them is an important step in learning how to improve your credit rating in Australia.
Applying for lots of loans in a short amount of time can have a negative impact of your credit score. Not realising the negative implications of multiple loan applications is one of the most common mistakes people make when researching lenders. Rather than applying for multiple loans at once, take it one loan at a time.
Keep in mind that each loan you apply for could be shaving a little bit off your credit score. If your first application gets rejected, investigate the reasons for this and learn from the experience.
Even if you've got a bad credit score, you may still qualify for a loan with Sunshine Loans. Our bad credit loans can help you out when other lenders won't give you a chance. Learn more about our bad credit loans today.