Credit scores are a financial grade that banks and other lenders use to work out whether to give you a loan.

If your credit score is lower than 600 you will usually be rejected, but this changes from lender to lender as they all have their own criteria.

Sometimes lenders relax their criteria and approve higher risk applications and at other times, like now, they tighten up their lending and are much stricter about who they lend to.

The bottom line is, the better your credit score, the more likely you are to be approved.

But what factors lead to a great credit score?

No Defaults

If you have a default (overdue account) on your credit file this will significantly lower your credit score and you will very likely be rejected for finance.

No Court Actions

If you have a court judgment on your credit file it’s as bad as having a default. Judgments become public information and this is added to your credit file.

No Negative repayment history markers (RHI)

 If you have been late with any payment on a banking or finance loan in the last 2 years it will show up on your credit file as a number next to the particular month you were late in paying. This lowers your credit score and makes lenders nervous about lending to you.

Low number of recent loan applications (enquiries) 

If you have submitted more than 5 loan applications in the past year or if you have applied to high risk lenders (think fast cash loans) in the last 5 years this will lower your credit score and make a new lender very nervous about providing you with more credit. 

No Bankruptcy

If you have entered a part 9 debt agreement or have been forced or have willingly become bankrupt this destroys your credit score for 5 years as that information becomes public and is added to your credit file.

Do not despair at this point!

There are good solutions that can increase your credit score without having to wait out the 5 years that most paid or unpaid listings remain on your credit file. 

Defaults, judgments, enquiries and RHI can be questioned and in many cases erased from your credit file which will improve your credit score immediately.

Call us now on 1300 070 672 or send us an email to help@solvemydebtnow.com.au so we can provide you with the best solution to improve your credit score.

To find out your current credit situation, please order all of your credit files for free by following these links:

1. Equifax: https://www.mycreditfile.com.au/products/equifax-credit-report-formerly-known-my-credit-file

2. Illion: https://www.creditcheck.illion.com.au/

3. Experian: https://www.experian.com.au/order-credit-report 

Once you have your 3 credit files please send them to help@solvemydebtnow.com.au for a free assessment. We will also provide you with a quote to fix your poor credit score. 

We Can Help You – Today

Book your FREE Consultation now and talk to one of our qualified SMDN Advocates that will help put you back on the road to financial freedom!