Have you ever bought anything on hire-purchase and had that feeling of trepidation when the salesperson goes to get approval from the loan company and you’re left wondering whether it’ll be a yes or a no? An uncomfortable and potentially embarrassing moment perhaps? 

Your history of failing to repay a loan on time, or late payment of a utility bill, or an unpaid parking fine can come back to bite you years later. 

A poor rating can not only affect your ability to borrow, but could end up costing you significantly more in interest payments, especially for larger purchases such as property. 

A blot on your credit history doesn’t always mean that you can’t borrow money. But you may find that fewer lenders will want your business and those that do are unlikely to offer their best interest rates. 

It can also affect your ability to work in some industries as more and more employers conduct credit checks before hiring. If you haven’t demonstrated decent financial responsibility, they may be hesitant to hire you. 

So how do you ensure a good credit score? 

Firstly, and most obviously, make sure all bills and loan repayments are paid by the date they are due. Even late payments will affect your score. 

Second, protect your rating by doing your own checks to make sure that the information contained in your credit record is correct. 

Don’t allow mistakes or even a case of identity theft to affect your credit history. You can get a free check once a year by going to GetCreditScore.com.au

The importance of having good credit can’t be understated. From finding a home, to qualifying for a great interest rate, to landing a preferred job, good credit makes life easier and less expensive.