A&B Financial Planning - Blog

Your credit score is an important financial tool, especially when you decide to approach a lending facility for a loan. But do you know what may affect your score? We've listed a number of factors which you should avoid if you want to maintain a good credit rating:

• Missing a payment - not just loans. Other bills in your names such as utilities can affect it too.
• Maxing out your credit limit.
• Applying for balance transfers.
• Applying and being rejected for a loan product.

It's important to note that if you own a credit card and have paid it off in full it can be favourable to keep the card, rather than cancel it. It can provide evidence of positive credit behaviour. Other ways to improve or maintain your credit score are:

• Successfully managing debts - meaning paying your loans, credit cards, etc. off on time or even early.
• Using your credit card - this can be an excellent way of building your rating, so long as you are able to pay it off.

The information above is general in nature and does not consider your circumstances. Before acting on such information you should consider the appropriateness to your own objectives, financial situation or needs.

That said, if you have any further questions in regards to how you can budget to pay off any existing debts or you would like help managing your financial situation in general, give us a call on (02) 6980 9000.