Whether you are looking for a home loan or a personal loan, your credit score can affect the amount you pay over the life of the loan. We take your financial situation seriously at Smartline Rockingham and want to make sure you are able to obtain the right terms and lowest interest rates possible.

You can save up to 2% interest on a personal loan with a good credit score. However, 80% of Australians have never checked their credit score. This is extremely important in the light of the fact that identity theft is now costing Australians $1.6 billion a year. Negative entries such as defaults can stay on your file for seven years. So can credit applications.

Everyday Events that can Affect Your Credit Score

Some of the things you take for granted can affect your credit score. Negative and positive events can affect your credit score, but it is the negative ones that often affect it the most.

Overdue Bills and Late Payments

If a bill is overdue for long, a default is filed. Late payments are also filed for credit cards and other loans. This stays on your record for five years.

Loan Applications

Whenever you apply for a loan, whether it is a personal loan, an auto loan, a home loan or a payday loan, it goes on your record. Too many loan applications can lower your score. That is why we are selective with the lenders we apply to in your name. Some brokers use the “shotgun method,” applying to all of their lenders. This can damage your credit.

Credit Cards and Balance Transfers

Every credit card you apply for is recorded. If you receive it, your debt is also recorded and goes against your assets when determining your ability to pay another loan.

How to Keep it Clean

Pay all of your bills on time. Try to pay off smaller, high interest accounts such as credit cards and store cards.

To learn more, call Smartline Rockingham today: (08) 9527 1800.