If you have received a copy of your credit report and credit score from Equifax and realised it’s not as high as you would like, what do you do? Some people may accept that is what their score is however others may need a higher credit score in order to approved for finance applications. That is why people look at ways to improve their Equifax credit score.
There are a number of ways you can improve your credit report and Equifax credit score in Australia.
Improving your Equifax credit score
Pay your bills and loans on time
Timely payments are crucial for a good credit score. Consider setting up direct debits and scheduling loan repayments for your payday to ensure you never miss a payment.
Manage your credit applications
Be cautious when applying for new credit. Multiple applications in a short period can negatively impact your score. Do your homework before applying and keep track of your credit commitments.
Keep your information updated
Notify lenders, utility providers, and phone companies if you change your address or email. This ensures you receive all bills and avoid potential credit infringements due to missed payments.
Monitor your credit report
Regularly check your credit report for errors or signs of identity theft. You can obtain a free credit report once a year. Consider subscribing to a monthly service to monitor changes and receive credit alerts but this will cause you to be charged to check your credit report.
Maintain low credit-utilisation
Keep your credit card balances low relative to your credit limits. Aim for a credit utilization ratio below 30% to positively impact your score.
Keep older credit accounts
The age of your credit accounts matters. Keeping older accounts open can demonstrate your experience in handling credit responsibly.
Proactively address financial problems
If you’re struggling to meet repayments, contact your credit provider. They may be able to assist you with alternative arrangements.
Use reputable lenders
The new Equifax Score considers the type of credit providers you use. Opting for larger, more reputable lenders can positively influence your score.
Avoid short-term unsecured loans
These types of loans can negatively impact your credit score. Instead, focus on more traditional forms of credit from established lenders.
By consistently following these strategies, you can work to improve your Equifax credit score in Australia over time.
