Essential Tips to Avoid 5 Common Credit Killers and Boost Scores

5 Credit Killers

What are the top factors that can damage your credit score?

The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.

A good credit score speaks volumes about your financial habits. It's the evidence most creditors need to evaluate your credit worthiness.

Interestingly, there are some credit killers that even people maintaining good credit scores would unwittingly be a part of, which will be their undoing when applying for credit facilities in the future.

These mistakes may seem to be insignificant, but when the time comes, you may face more problems than you expect.

Avoiding Debt

Creditors need to evaluate your financial history to approve any credit facilities.

If you have no previous or existing debts, it might adversely affect your case, as creditors have no way of checking out how you'll handle the credit you get from them.

Shopping For Rates

Looking around for the best rate may actually turn out to be bad.

Debt Stressed?

If you're struggling to pay your debts and covering living expenses, we're here to help. Through our national panel of Debt Management specialists, we can help customers with $10k or more in debt by consolidating your existing loans, stopping Debt collectors from contacting you and re-negotiating repayments on your terms!

... start your free debt analysis ...

Too many inquiries within a short period could damage your credit score.

Usually, if you do more than 3 or 4 inquiries within a single month, you are likely to scare the lenders. For the same reasons, transferring the balances on your credit cards could be a bad idea as well.

Assuming There's a Grace Period

If you are late on a payment by even one day, you are late, period.

Never assume there's a grace period for late payments, because it only affects your credit score negatively.

Closing Old Accounts

Because your relevant transaction history also gets erased when you close your old accounts, your credit history is shortened and it may lower your credit score.

If you want to close your old accounts, close everything except the oldest account, which will leave a longer history.

Co-signing Loans

The obvious problem here is that the primary borrower's mistakes will end up on your credit report as well.

Published: Sunday, 1st Aug 2021
Author: Paige Estritori

Rate this article

0 Comments

No comments yet. Be the first to share your thoughts.

Finance Articles

Mastering Money: Strategies to Boost Your Financial Health

Financial health is a crucial aspect of overall well-being, particularly in the ever-evolving economic landscape of Australia. The capacity to manage personal finances effectively not only provides a sense of security but also opens doors to opportunities that might otherwise be out of reach. As such, mastering the art of money management is an indispensable skill for Australians from all walks of life. - read more

Understanding Interest Rates: How to Get the Best Deal on Your Loan in 2024

As we step into the year 2024, the financial landscape continues to evolve, bringing to the fore the ever-critical subject of interest rates. For anyone considering taking out a loan, whether for a car, a home, or personal expenses, understanding the mechanics of interest rates is not just beneficial; it’s essential. - read more

Smart Saving for Big Purchases: Training Your Dollars to Work Harder

With the rising costs of living and the all-too-familiar financial hurdles, saving for large purchases can seem like a daunting task for many Australians. From buying a new car to securing the deposit on a home, significant expenses require a level of financial commitment and foresight that goes beyond everyday spending. - read more

The Impact of Credit Scores on Loan Applications: How to Borrow Smartly

Credit scores play a crucial role in loan applications, determining eligibility and interest rates for borrowers. Understanding how credit scores are calculated and the impact they have on loan applications is essential for anyone who wants to borrow smartly. - read more

Smart Borrowing in the Digital Age: Navigating the World of Online Loans

In today's digital age, the landscape of borrowing has evolved with the emergence of online loans. The convenience and accessibility offered by online lenders have made them an increasingly popular choice for Australians seeking financial assistance. However, it is essential to approach online borrowing with caution and make informed decisions to ensure smart borrowing practices. - read more

Finance News

Cochlear's Profit Warning Sends Ripples Through ASX 200

25 May 2026: Paige Estritori

The Australian stock market experienced a notable decline following Cochlear's announcement of a significant reduction in its profit guidance. The S&P/ASX 200 index closed 105.8 points lower, a 1.18% decrease, marking the largest single-day fall in over a month. Cochlear, a leading medical device company, slashed its FY26 earnings outlook by approximately 30%, citing challenges in key markets and increased competition. - read more

P&N Bank and Bank Australia Set to Merge

25 May 2026: Paige Estritori

P&N Bank has announced plans to merge with Bank Australia, aiming to establish a $30 billion mutual lender. This move comes less than six months after a previous merger attempt with Great Southern Bank was unsuccessful. The proposed merger is expected to enhance the combined entity's ability to offer competitive products and services to their members. - read more

RBA's Latest Rate Hike: What It Means for Australian Borrowers

17 May 2026: Paige Estritori

The Reserve Bank of Australia (RBA) has announced an increase in the official cash rate to 4.35%, a move aimed at curbing the nation's rising inflation, which currently stands at 4.6%. This decision marks a continued effort by the RBA to stabilise the economy amid persistent cost-of-living pressures. - read more

Non-Bank Lenders Push for Access to Government's Economic Support Program

17 May 2026: Paige Estritori

Non-bank lenders are advocating for inclusion in the Australian government's $1 billion Economic Resilience Program, emphasising their critical role in providing finance to small and medium-sized enterprises (SMEs). This push highlights the evolving landscape of SME financing and the need for inclusive policy measures. - read more

Understanding the 2026 Federal Budget's Impact on Your Household Expenses

17 May 2026: Paige Estritori

The recently unveiled 2026 Federal Budget introduces several measures poised to influence the financial landscape for Australian households. Key areas affected include groceries, fuel, utility bills, and taxation. - read more

Click for more Finance News

Need Help Finding a Loan?

Find out now if you qualify and compare rates, offers and options from multiple lenders - without a credit check!

All finance quotes are provided free (via our secure server) and without obligation.
We respect your privacy.

Knowledgebase

Derivative:
A financial security whose value is dependent upon or derived from an underlying asset or group of assets.