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.

The Great Aussie Truck Buyer's Handbook: A Practical Guide to Heavy Vehicle Finance

Buying or financing a truck in Australia can affect more than the monthly repayment. The loan structure, fees, deposit, balloon payment, vehicle age and intended use can all shape cash flow and total borrowing cost. This practical guide is written for sole traders, tradies, logistics operators, fleet managers, small business owners and personal truck buyers comparing truck finance options. It explains commercial and personal truck loans, leases, chattel mortgages and hire purchase arrangements in clear, general terms. Inside, readers will find repayment factors, eligibility considerations, cost checklists, planning examples, case studies and questions to ask before making an informed finance enquiry.

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

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Knowledgebase

Margin Call:
A demand by a broker that an investor deposit additional money or securities into the account to cover possible losses.