Whenever you apply for credit, Lenders will take a close look at your credit score.
Your credit score is basically a record of how you have handled borrowing in the past.
Your credit score takes into account your repayment of past loans and gives a description of the type of risk you are as a borrower.
Many people don't realize that some of their spending habits can adversely affect their credit score. This can make it harder to get financing and could see you paying higher interest rates on future loans.
On Thursday, September 22, 2022, the hack of Optus that resulted in the breach of nearly 10 million customers' information caused an uproar on the Internet.
Although the hackers now claim to have dropped the ransom and apologized to Optus and its users, many people are still upset. After all, these leaked details are already enough in Australia to be used for the 100-point ID required to create a false identity.
So how do you make sure your credit score is not affected?
Late or Missed Payment
If there's one thing you need to do to maintain a good credit score, it's to make sure you always pay your debts and bills on time. Missed payments or consistently late payments can negatively affect your credit score and result in late payment fees and additional interest charges.
If you want to maintain or even improve your credit score, it's a good practice to pay your bill as soon as you receive it. It's also worth considering scheduling automatic payments to ensure you don't miss a payment.
Apply for credit too many times
Every time you apply for credit, it will be recorded as an inquiry on your credit report. This is a lesser-known factor that can affect your credit score.
If you apply for credit too many times in a short period of time, this will affect your credit score and could be a red flag for the lender. It's important to research lenders ahead of time so you can apply for the best loan for your personal and financial situation.
If you're not sure of all your loan options, talking to your Mortgage Broker who can compare different lenders and loan products is a good idea to help you protect your credit score.
Track your credit score
Tracking your credit score has never been easier, contact us to get your latest credit report.
In addition to monitoring your scores, it is critical that you look for any errors on your reports, such as late payments, incorrect charges or late bills.
There is also information such as your name. It is easy to get our names mixed up due to similar or homonymous names, which is the most common mistake made by credit reporting agencies.
These questions are not your fault but may hurt your score.
If you find any errors, you can contact the credit reporting agency to make inquiries and make corrections.
If you continue to pay your bills on time and diligently monitor your credit score, you can gradually improve it and help your chances of getting financing when you really need it.
Leakage and theft of personal information
Typically, identity thieves steal your personally identifiable information and use it to obtain credit cards in your name or to engage in other illegal activities.
Be sure to investigate any bills you receive for purchases and services that do not belong to you without requesting them.
Check your credit report regularly to check your personal information.
Contact us for a free copy of your latest credit report