How to build credit and achieve a good credit score

At some point in your life, you may come across a default or negative listing on your credit report and will need credit repair. A credit default or adverse information on a credit file can impact your ability to move forward with a finance application. That is why a service like ours at Clear Credit Solutions is vitally important. Clear Credit Solutions can assist in helping remove any adverse listings from a credit report in Australia. That way there is nothing stopping a finance application from proceeding.

However, not all listings can be removed from a credit report. Only some listings can be removed and checking your file first along with a follow up phone call or enquiry to Clear Credit Solutions is best practice. Our friendly team can assist with any enquiries from client’s or brokers about adverse credit defaults or information.

Along with a team of friendly staff, we at Clear Credit Solutions are the proud winners of the Product Review Award for Best Credit Repair Company in Australia for 2020, 2021, 2022 & 2023. We have a range of useful articles like this one about how to obtain a good credit score to assist you.

Achieving a good credit score is essential if you care about your overall financial health. When you have good credit, you increase your qualification odds for credit cards and receive some of the best interest rates on various credit products. But building good credit doesn’t happen overnight. Instead, you need to consistently practice responsible credit behaviour, such as paying bills on time and limiting debt.

How to build credit
  • Understand what is a credit score
  • Learn how credit scores are calculated
  • Pay bills on time and in full
  • Maintain a low utilisation rate
  • Limit new credit applications
  • Alternative ways to build credit
What is a credit score?

Your credit score is three-digit number, ranging from 300 to 850, that is the result of an analysis of your credit file. Lenders use your credit score to judge your potential credit risk and ability to repay loans. Credit score ranges vary based on the model used and the credit bureau (Illion, Equifax ) that pulls the score. Credit scores are used in 90% of lending decisions, so those ranges are listed below, using estimates from Equifax. Good Credit Score

  • Very poor: 300 to 579
  • Fair: 580 to 669
  • Good: 670 to 739
  • Very good: 740 to 799
  • Excellent: 800 to 850
How are credit scores calculated?

Credit scores are calculated by looking at five key factors. Good Credit Score

  1. Payment history (35%): Whether you’ve paid past credit accounts on time
  2. Amounts owed (30%): The total amount of credit and loans you’re using compared to your total credit limit, also known as your utilisation rate
  3. Length of credit history (15%): The length of time you’ve had credit
  4. New credit (10%): How often you apply for and open new accounts
  5. Credit mix (10%): The variety of credit products you have, including credit cards, instalment loans, finance company accounts, mortgage loans and so on

Source: Select

Here at Clear Credit Solutions, we are the credit repair experts and can help when it comes to negative listings on your credit report as well as provide advice on credit scores. Do you need a good credit score?

Then get in contact with our friendly staff for a free credit assessment. There are no admin or investigation fees, no charge per default and a full refund guarantee so there is no risk! You can either call 1300 789 783 or fill in our enquiry and we will call you today.

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