22 Oct 2021
What Credit Score Do You Start With?
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Bad credit can seriously hamper your future plans. From getting a car to owning your first home, bad credit can prevent you from meeting your life goals.
Fortunately, just because you have bad credit now, that doesn’t mean you’ll have bad credit forever. There are firm steps that you can take to begin repairing your credit.
Nearly every Australian adult has a credit file, which contains a detailed record of your financial history. Lenders look at this file to determine the risk they’ll take when lending you money. If you’re not a risk, then they’ll be more likely to lend you money with low-interest rates. But if you are a risk, they’ll charge higher interest rates, and may not lend money to you at all.
Anyone with a credit score between 0 and 550 is considered weak or below-average. Events such as late payments, overdue accounts, bankruptcy, and even too many credit inquires can lower your score, earning you a bad credit designation.
In short, you can improve your credit by showing lenders that you’re no longer a risk. To do that, you’ll need to fill your credit file with evidence of reliable borrowing.
You can create that evidence by taking these steps:
No one wants to have bad credit, but it’s always possible to improve. We at Mortgage House are here to help, so contact us today!