Upcoming Events

There are currently no events, please check back soon.

Book a FREE financial
health check today!

Recent Articles

Music to your ears

  Would Christmas be the same for you without the smooth croon of Crosby and Sinatra around the BBQ? Or carols along the most decorative boulevards of your neighbourhood? Or perhaps you are more likely to wince every time 'All I Want for Christmas Is You' comes on for the third time only to remind you how long you've been...

Read More ...

Separating needs from wants

  Even those of us who have been paragons of responsibility for 51 weeks of the year can be tempted to take a budgeting holiday when Christmas and the summer vacation roll around. Unlike overindulging at the Christmas lunch, this has more than short-term consequences.
  Last December, Australians spent $25.6 billion in ret...

Read More ...

Opportunities in the cooling property market

  Things are looking up for first home buyers for the first time in years as house price growth begins to slow across the country. While prices have been on the slide for some areas in the West and the North since the end of the mining boom, the housing market in Sydney and Melbourne also appears to be losing steam.   At...

Read More ...

Healthy Apple Crumble

  You'll need: Filling 6 medium sized apples approx 1 kg (pink lady, fuji or golden delicious)
1 cup 100% apple juice
1 teaspoon vanilla extract
1/2 teaspoon ground cinnamon
zest from 1/2 orange
Crumble topping 1 1/2 cups rolled oats
50 g organic desiccated or flaked coconut
1/2 teaspoon ground cinnamon...

Read More ...

< Previous | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | Next >
Articles via RSS rss

Are you a young professional?


Keeping score of your credit rating

Written on the 7 June 2017 by Arrow

Keeping score of your credit ratingIn many ways, applying for a loan has never been easier. Interest rates are comparatively low and competition among lenders for new business is intense. So it can come as a shock when a loan application is turned down. The reason is often a bad personal credit score, but few people understand what that is, let alone how to improve it.

Having a good credit score can help you secure the best financial deals, but first you need to understand what your credit score is and what steps you can take to improve it.  

What is a credit score?

Your credit score is based on information collected by credit reporting agencies and documented in your personal credit report. This information includes personal details such as your age and where you live, how much you've borrowed and who from, the number of credit applications you've made and any unpaid or overdue payments. These could relate to a bank loan, rent, mortgage or even an overdue phone bill.

Lenders and credit providers such as banks and credit unions use this information to work out how risky it is to lend you money.

How do you find your credit rating?

The good news is that you can get a copy of your credit file once a year for free as well as your credit score from online sites such as Creditsavvy, Equifax (previously called Veda) and Finder (which uses Equifax scores).

Depending on the credit reporting agency, you will receive a number out of 1000 or 1200 that's broken down into five categories, from excellent to below average. If you fall into one of the lower categories, lenders may ask for more information or deny you credit.

It's worth checking your credit file before you apply for a loan to make sure the information is accurate and that you haven't been the victim of fraud or identity theft. If there are mistakes, credit providers and reporting agencies are legally obliged to investigate and correct them free of charge.

How to improve your credit score

You can increase your chances of being approved for a loan by understanding your score, correcting any errors and improving your creditworthiness with some simple actions.

  • Pay your bills on time.
    When you're busy or on the move it's easy to overlook an electricity bill or to forget a payment. One way to avoid this is to set up automatic payments.
  • Lower your credit card limits.
    You may think having a high credit card limit is a mark of success, but it can count against you. Lenders consider your credit limit as a liability even if you never use the full amount and pay your balance in full every month.
  • Consolidate your debt.
    By consolidating several personal loans or credit cards into one it can make it easier to keep track of repayments and save on fees and interest.
  • Avoid making multiple credit enquiries.
    Making lots of enquiries in a short space of time has a whiff of desperation about it and can lower your credit score. Do your homework, only consider a new loan or credit card when you need it and then apply for the options most suited to your needs.
  • Notify your credit providers if your circumstances change.
    If you move be sure to notify your bank, other lenders and utilities so your bills will be redirected and you won't inadvertently miss a payment. The same goes if you change financial institutions you need to contact loan providers to switch over automatic payments.


If you are about to start house-hunting or see an attractive investment, then timely access to credit is critical. Knowing your credit score and improving it if necessary can not only speed up your loan approval but also help you negotiate the most competitive rates.

If you would like to discuss ways to tackle debt and get your finances in shape, give us a call.

Author: Arrow

When can I retire?

Have you started planning for retirement yet? Whether its decades off or looming around the corner, you will need a solid plan in place and Arrow Focus on Wealth can help you to create that, even if you plan on retiring early...... Read More

Our Investment
Beliefs eBook











 

Arrow Focus on Wealth Pty Ltd is a Corporate Authorised Representative (CAR) No. 270472 of GPS Wealth Ltd (GPS) , www.gpswealth.com.au , AFSL no. 254 544 and Australian Credit Licence no. 254 544, ABN 17 005 482 726 . For more information please refer to · Combined Financial Services and Credit Guide (FSG), GPS Privacy Policy , GPS Complaints Process
General Advice Warning:
The information contained on this website has been provided as general advice only. The contents have been prepared without taking account of your objectives, financial situation or needs. You should, before you make any decision regarding any information, strategies or products mentioned on this website, consult your own financial advisor to consider whether that is appropriate having regard to your own objectives, financial situation and needs.
Whilst Arrow Focus on Wealth Pty Ltd is of the view the contents of this website is based on information which is believed to be reliable, its accuracy and completeness are not guaranteed and no warranty of accuracy or reliability is given or implied and no responsibility for any loss or damage arising in any way for any representation, act or omission is accepted by Arrow Focus on Wealth Pty Ltd or GPS Wealth Ltd or any officer, agent or employee of Arrow Focus on Wealth Pty Ltd or GPS Wealth Ltd.
Tell a FriendPrintBookmark SiteSend an enquiryBook a consultation