Building long-term wealth isn’t just about saving or investing. It starts with having a strong financial foundation. One of the most overlooked parts of that foundation is your CREDIT RATING. Whether you’re buying your first home, refinancing, or investing in property, your credit score plays a major role in your financial freedom.
If you live in Australia and aren’t sure how to check or manage your credit report, here are three simple steps to get started.
1. Do a Credit Check-Up
You’re entitled to, one free copy of your credit report each year from an authorized credit reporting body. We recommend starting with withhttps://www.oaic.gov.au for guidance on how to access it.
Once you have your report, check that all the details are accurate and up to date.
You need to confirm that:
- All debts listed are yours (duplicates sometimes happen).
- Loan repayments in default under 60 days late aren’t incorrectly recorded.
- Closed or paid accounts are marked correctly.
A clean, accurate credit report. Will save you headaches and money when applying for future loans.
2. Borrow Responsibly
Responsible borrowing is key to maintaining and improving your credit health. As well as creating future wealth.
- Make repayments on time — even small delays can lower your score.
- Only borrow what you need – For example, if you need $2,000, don’t apply for a $10,000 credit limit “just in case.”
- Limit how often you apply for new credit – Remember frequent applications can make lenders wary.
Remember, not all credit carries the same weight . A mortgage has a much greater impact on your credit profile than a store card or small loan.
3. Correct Any Mistakes
If you spot an error, don’t ignore it. Contact both the, credit reporting agency and your credit provider to have it fixed. You might need to provide reason for why you think it is incorrect.
If the issue isn’t resolved, you can reach out to the Financial Ombudsman Service or the Australian Financial Complaints Authority (AFCA) for assistance.
And if you suspect identity theft report it to the police immediately.
Why Your Credit Matters for Wealth Creation
Many people don’t realize how much their credit score affects their ability to grow wealth. Missing a few small payments or neglecting your report can quickly drag down your rating. As well as your financial opportunities.
Taking a few minutes each year to check and maintain your credit isn’t just about borrowing. It’s about taking control of your financial future and setting yourself up for true wealth and independence.
I’m not in Australia
That doesn’t matter. Your credit score is something that all financial institutions will look at when deciding to give you credit. There are similar reporting/authority bodies in every country that you can get a copy og your credit report from.
Its the credit your credit health, process that matters.
