Tips to improve your creditworthiness

How to improve your creditworthiness

Here are our top tips for improving your creditworthiness. Learn more about creditworthiness and why it matters.

1. Check your credit score on your credit report to see where you stand

Access your credit report, check your credit score and see if there’s an area you need to address. The credit reporting bodies we use are:

• illion (formerly trading as Dun & Bradstreet Australia), opens in new window
• Equifax (previously known as Veda), opens in new window
• Experian Australia, opens in new window

It’s worth getting a copy of your credit report yearly to make sure it’s correct (you’re entitled to a free copy every 12 months).

Sometimes people notice errors in their credit report. This may be due to a mistake by credit providers or the credit reporting agency, or could indicate identity theft. If there’s a mistake on your report, the Government’s MoneySmart, opens in new window website offers help on reporting errors.

2. Pay bills and rent on time

It’s important to pay bills like your phone, electricity and rent on time. This could be before or when they’re due. Missing due dates can happen to anyone, but if it becomes a habit it can impact your credit score.

Missed payments may lead to referral to a debt collector or to a default being recorded on your credit report.

If you’re worried about forgetting or missing a due date, most service providers can set up a direct debit to pay your bill or a set amount on time. Other ways to keep on top of your bills include using BPAY®, creating regular payments or banking with us at Australia Post.

3. Pay loans and credit cards on time

Regularly paying off at least the minimum amount on credit cards, personal and home loans is a great way to show you’re in control of your debt.

Some products let you pay off more than your scheduled repayments. If you’re able to pay more on an eligible product, this helps reduce monthly interest charges and helps improve your creditworthiness. Remember, you can avoid credit card interest charges by paying off the full amount by the due date.

Want to learn more about different payment options that could suit you? Get tips on credit card and personal loan repayments and managing your home loan.

If you’re struggling to meet minimum repayments on your NAB credit card or loan, reach out to NAB Assist for support.

If money’s tight, it can be hard to keep on top of regular bills and repayments. Money Smart, opens in new window can help you understand your options and get on top of debt. 

4. Limit how many credit applications you make

Each application is added to your file and temporarily lowers your score. Multiple credit applications within a short time can be seen as a risk and impact your creditworthiness.

5. Consider the kind of credit you apply for

It’s important to research online and talk to lenders to best understand the right product for you and your financial circumstances before you apply.

6. Build up your savings

If you have money regularly coming in, maintaining a savings buffer will give you reassurance that you’ll still to be able to pay bills on time if something unexpected happens. Learn about the importance of building an emergency fund.

This is also a great way to demonstrate you’re a good credit risk when applying for a credit card, personal loan or home loan.

Everyone has a different approach when it comes to saving money. Our money saving tips and savings goals can help you to become a better saver.