Credit Report Workout
The credit report is a list of all your past financial behaviours used by banks and other financial institutions to determine whether to lend you money or issue you financial products like credit cards. Over the course of this series we’ll tackle topics aimed at helping you achieve financial fitness.
Today, we’ll start with the basics - giving your credit report a proper workout.
Before we jump in, if you haven’t yet had a chance to check your credit scores with WisrCredit make sure you do before beginning the bootcamp – it’s a great way of tracking your financial fitness during the next six weeks and beyond.
Step 1: Test your credit score knowledge.
Step 2: Understand why your credit score is important.
Your credit score helps play a part in determining your eligibility as a borrower when it comes to getting a loan approved. It tells prospective lenders how reliable you are as a borrower, based on your credit history and how reliable you are at making payments when it comes to taking out a loan.
Your credit score could help get you a lower interest rate loan to take control of your finances, or buy the things that matter most to you. It’s that important.
Another important document is your credit report, which is a much more detailed view of your financial history - such as previous credit activities, missed payments, defaults and applications for credit, even if not successful.
Whilst credit reporting agencies go to great lengths to ensure this information is correct; mistakes can and do happen. Unfortunately for a borrower, these mistakes might mean being refused a loan or paying a much higher interest rate.
Fortunately it’s relatively easy and inexpensive to see if there are any mistakes on your credit report, as all Australians are entitled to one free credit report per year from each of the three major credit reporting agencies.
To get your free credit report, visit each of the links here:
Step 3: Use our credit score checklist.
Once you’ve received your reports, use the WisrCredit Bootcamp checklist to make sure you’ve covered everything off. If you find any information on the reports that doesn't look right, you should raise this with the relevant credit reporting bureau immediately. It takes just a few minutes and could save you in the long run.
Step 4: Stay up-to-date.
That's it for this week.
Keep an eye out on your inbox for Week 2! If you've got some feedback on the program, drop us a line at firstname.lastname@example.org
Disclaimer: This article contains general information only, and is not general advice or personal advice. Wisr Finance Pty Ltd does not recommend any product or service discussed in this article. You must get your own financial, taxation, or legal advice, and understand any risks before considering whether a product or service discussed in this article may be appropriate for you. We have taken reasonable efforts to ensure that the information is accurate at the time of publishing, but the information is subject to change. We may not update the article to reflect any change.