Your credit score is more than just a number — it’s a key factor lenders use to decide whether to approve your loan and what interest rate to offer. A strong score can help you access lower rates, better terms, and faster approvals. A weak score can mean higher costs and fewer options.
Why It Matters
Even a small difference in your interest rate can add up to a large amount over the life of a loan. For example, on a $500,000 mortgage over 30 years, a borrower with a strong credit score might secure a 5.8% rate, while someone with a weaker score may only qualify for 6.2%. That 0.4% difference could cost tens of thousands of dollars in extra interest.
How Credit Scores Are Calculated
Credit scores in Australia are generally based on:
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Your repayment history (on loans, credit cards, and bills)
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The number and frequency of credit applications
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Your total level of debt and credit limits
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Negative listings such as defaults, bankruptcies, or court judgments
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Tips to Improve Your Credit Score
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Check your credit report annually and correct any errors.
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Pay all bills and repayments on time, even small amounts.
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Limit the number of credit applications you make within a short period.
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Keep your credit utilisation low, ideally under 30% of your limit.
The Bottom Line
Maintaining a healthy credit score is one of the most effective ways to reduce your borrowing costs. By improving your score, you strengthen your position when negotiating with lenders and potentially save thousands over the long term.
Contact Us for a Free Loan Health Check:
Call/WhatsApp: +84 96 275 92 07
Email: support@sw-globalfinance.com.au