Group of business owners having happy discussion at a cafe Group of business owners having happy discussion at a cafe
Group of business owners having happy discussion at a cafe

Why Have A Regular Credit Score Check-Up?

Just like an annual check-up at the doctor, experts say that you need to be checking your credit score on a regular basis.

By regularly checking in on your credit file, you can keep an eye on a number of important details like:

  • Making sure that nobody is making enquiries on your file that you don’t know about (fraudulent activity)
  • Work towards a credit score goal that will see you qualify for a lower rate loan in the future (your Lending Specialist can help with setting this goal with you)
  • See when previous defaults or credit issues have been removed from your file

Research shows that almost 66% of Aussie’s don’t know their credit score with most of them claiming that they would be worried about what their score is.

Most of these people were worried that their credit score would hinder them getting a loan and some of these people surveyed claimed that it was to save themselves the embarrassment of their partner or friends finding out that they had a bad credit score.

A misconception that some people have is that checking their credit score negatively impacts their score, but this simply isn’t the case.  What can impact your credit score is applying multiple times for loans and credit cards, whether that’s in the bank branch or online.

We recently had a Client of ours that had a credit score over 750 which is deemed to be a good credit score. Before consulting with a professional they then went shopping online to find a low rate personal loan for an overseas holiday. They found plenty of online lenders with various low rate personal loan ads to click on. While sitting on their lounge in front of their TV for 30 minutes making 3 enquiries online they successfully reduced their credit score by over 150 points within this 30-minute timeframe. Little did they know that this 150-point reduction in their credit score could likely mean the difference between a Loan Approval and a Loan Decline.

With technology today, most lenders have very simple online application or “enquiry forms” designed to get some very basic information from a client to ascertain if they fit the bank’s “perfect customer” mould.  What a lot of consumers don’t realise is that by putting some very basic details into the online enquiry form they could be adding hits onto their credit file which then in turn lowers their credit score each time they hit submit.

There is a way to avoid lowering your credit score unnecessarily and that’s to speak with a Financial Professional who can explain your current credit score to you. This will then give you the opportunity to explain to them what your financial goals are before applying for a loan.  By having a Finance Specialist in your corner guiding you through the process you can ensure that your loan enquiry is going to the best possible lender for your situation the first time, giving you the best chance of getting your loan approved without damaging your credit score along the way.

Our team can provide you with a free copy of your credit file to ensure you’re aware of how your financial footprint is viewed by lenders and Banks. Call us today to run through your credit file, or have us reach out to you.

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