Why it’s important to check your credit score

 In Accounting & Business Advisory, Finance, Mortgage & Loans, News

Your credit score is like going to the doctor for many – you don’t have a check-up unless you absolutely need to. The Veda Australian Credit Scorecard, surveying the credit behaviour of people nationwide, proves this to be true for Aussies, with only 30 per cent of people concerned about what’s in their credit history.

This is unusual when you delve deeper into the data – Veda also found a quarter of Australians spend money on things that they will struggle to repay. Keeping track of changes in your credit score is an essential part of a healthy financial life. To do that, people need to change their mindset on how important their credit score is and check it more regularly.

The benefits of checking your credit score regularly

  1. Knowing where you stand

They say knowledge is power. This is particularly true with your credit score. If you want to borrow money or get a new credit card, financial institutions will check to see if you’re a suitable customer based on this score. Know what you are dealing with, and you can plan your application around it.

  1. Insight into your spending

By checking on your credit score regularly, you can see what spending habits hurt your budget. This can help you plan for a more financially secure future.

  1. Ensuring your data is accurate and protected

No one is better qualified to ensure your credit and personal information is accurate than you. Plus, a regular check minimises the risk of identity theft or other credit issues.

  1. Fixing mistakes

Periodically checking your credit score also improves the accuracy of the financial information. Any mistakes, even minor ones, can have a significant impact on your score, so keeping on top of it is a good idea.

How to check it and how often

Credit agency Equifax recommends checking your credit score as regularly as you like, but no less than once a year. This strategy ensures everything is above board and any issues are rectified before you need a good credit score for a loan application.

The Australian Securities and Investments Commission (ASIC) note you can get free credit checks from a number of online providers, including:

ASIC also mentions you should check your score on more than one platform to ensure all the data is consistent. Once you’re certain of your credit score, you can start to work out a strategy for improving it!

For more information on your credit score loan and how it can help you get a better rate, speak with our team today!

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