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Quiz: what impacts your credit score?

Aussie Home Loans blog

Mortgage Resource

5 years ago

Whether you’re looking to secure a home loan in the near future or further down the track, it’s always a good idea to keep your credit score in mind. With the rollout of Comprehensive Credit Reporting (CCR) in Australia since July 2018, your responsible credit behaviour will be recorded and will influence your credit score.

Different factors can affect your credit score in both positive and negative ways, and with the arrival of CCR, there’s no better time to get credit savvy!

This article was originally published in February 2018.

If your application for credit does not get approved, what should you NOT do to maintain your credit score?

Do some more research to find out which credit would suit you best.

Apply to a few other banks to see if they will approve your application.

Wait until your financial circumstances have improved.

Check your credit score and track your recent behaviour.

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What credit card behaviour will weigh most heavily on your score?

Keeping a credit card for emergencies.

Having multiple credit cards.

Getting rid of cards you don’t use anymore.

Putting too much on/maxing out your credit card.

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How often should you check your credit score?

Only when you apply for credit.

Quarterly (every three months).

Whenever you feel like it.

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You suspect there is an error in your credit report, you should...

Worry about it later.

Change it when you next apply for credit.

Leave it, it’s only a small error.

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You and your partner alternate payments for shared utilities but they often forget to pay on time. What should you do?

Just remind them for next time.

Let them know that consistent late payments will negatively affect their credit score.

Look into direct debits or a shared account. Defaults can affect your credit score.

Doesn’t matter too much, they only forget every now and then.

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Once you’ve paid off a credit card, you should:

Cancel it. You don’t need it anymore.

Leave it open as long as there’s a low balance and it’s paid on time.

Increase the limit, in case you need it for emergencies.

Look at other options that are available for you.

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It looks like you’ve been overcharged on your utilities bill. Should you…

Dispute it with your supplier to avoid being overcharged.

Pay the balance on time, then submit a dispute later.

Pay what you are usually charged.

Pay the full amount.

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