Regular Credit Checks
It’s a good idea to do regular credit checks so that you can have a clear understanding of your finances and your borrowing power before you apply for any new loans or credit cards. Your credit report contains information about your credit history, such as how you have handled previous credit accounts (like loans), as well as any defaults or bankruptcies and enquiry information. Credit reports are used by lenders to help them decide whether to offer you a loan or not.
Your credit score is a numerical representation of the information in your credit report. Lenders look at this score to determine:
Whether you could afford to meet loan repayments
How much they’re willing to lend you for a home
What interest rate to charge you
What your credit limit should be on a credit card
Whether you should be approved or rejected for a loan or a credit card
Checking your credit score regularly can help you keep on top on your financial reputation and improve your chance of a credit application being approved, whilst checking your credit report also ensures you have a comprehensive understanding of your credit history and allows you identify and address any errors. As well as affecting your ability to get credit, incorrect personal details or listings can alert you to things like identity theft, where other people use your personal information for financial gain.
You may have a report with more than one Credit Reporting Agency, so you should check with all three of the major credit reporting bodies in Australia – Equifax, Experian and illion. You can get free copies of your credit report directly from the Credit Reporting Agencies, alternatively, Fix Bad Credit can order your credit reports on your behalf, at no cost.
Doing a credit check before you apply for credit will enable you to feel more confident that you will be offered good credit. If there is a problem with your credit report the Fix Bad Credit consultants can conduct a free comprehensive credit review of your financial situation and advise personalised, tailored credit or debt solution options specific to your situation.
On-going credit checks will enable you to regularly review and reassess your credit report, so you can continue to improve your credit score and identify any potential problems early, before they cost you money.