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.

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

How Vehicle and Equipment Finance Works in Australia

Vehicle and equipment finance can help Australian individuals, sole traders and businesses access cars, utes, trucks, machinery and other assets without paying the full purchase price upfront. This guide explains common finance structures, key costs, risks and application factors to understand before applying. - read more

Step-by-Step Guide to Navigating the Loan Application Process

Welcome to our step-by-step guide to navigating the loan application process! Whether you're seeking a home loan, personal loan, or business loan, the journey can seem overwhelming. - 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

Your Complete Guide to Debt Consolidation Down Under

As Australians navigate their personal financial journey, understanding how to manage debt effectively becomes crucial. From dealing with various lines of credit to juggling personal loans, the concept of debt consolidation often emerges as a viable strategy to regain control of financial health. This guide delves deep into the heart of debt consolidation's landscape in Australia, offering a comprehensive examination of what it entails, its benefits, and its potential drawbacks. - read more

Tips to Improve Your Loan Eligibility in Australia

For many self-employed Australians, securing a loan can feel like a daunting task. Unlike salaried employees, self-employed individuals often face unique challenges when it comes to proving their income stability and financial health. - read more

Finance News

Why loan purpose can still change the rate you pay

16 Sep 2026: Paige Estritori

Recent personal and vehicle loan rate updates are reinforcing a practical message for Australian borrowers: the reason you borrow, the asset involved and the strength of your application can still make a meaningful difference to the price you are offered. - read more

Why SME Borrowers Still Need to Shop Carefully for Finance

09 Sep 2026: Paige Estritori

The latest Reserve Bank lending-rate data gives Australian small business owners another reason to look beyond the first offer on the table. While business credit has continued to expand through 2026, the price paid by smaller borrowers remains highly dependent on loan structure, security, trading history and lender appetite. - read more

Business Credit Is Still Moving Despite Rate Pressure

02 Sep 2026: Paige Estritori

The Reserve Bank’s latest financial aggregates add another chapter to the borrowing story that has been building through 2026. The July update indicates that private sector credit is still expanding, with business lending remaining an important source of momentum. For SMEs, sole traders and self-employed borrowers, this extends the pattern seen in the earlier June credit data: demand for funding has not disappeared, even while interest rates and lender scrutiny continue to shape approval outcomes. - read more

RBA Minutes Signal a Longer Wait for Easier Borrowing Conditions

26 Aug 2026: Paige Estritori

The Reserve Bank’s latest meeting minutes have added more detail to the message borrowers heard after the earlier August rate decision: policy makers are not yet ready to declare victory over inflation, even if some parts of the economy are clearly slowing. For households, sole traders and SMEs, that means borrowing plans still need to be built around current lending conditions rather than expectations of a quick fall in rates. - read more

What the August RBA Decision Means for Borrowers

19 Aug 2026: Paige Estritori

The Reserve Bank of Australia’s August decision to leave the cash rate unchanged at 4.35% keeps a familiar message in place for Australian borrowers: relief may come eventually, but loan decisions still need to be made on today’s numbers. For households, sole traders and SMEs, the practical issue is not only where rates sit now, but how lenders assess affordability while policy remains restrictive. - 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

Portfolio:
A range of investments held by an individual or institution.