Your credit score is one of the most significant factors in whether a lender approves your application — and what interest rate they may offer you. The difference between a 'good' and 'excellent' score can potentially mean thousands of dollars over the life of a loan.
What Lenders Actually Look At
Australian lenders use comprehensive credit reporting, which means your file shows both positive and negative information: repayment history, credit enquiries, defaults, court judgements, and the types of credit you hold. A good broker will review your report before submitting any applications.
7 Ways to Strengthen Your Score
- 1Consider paying every bill on time — even small utilities and phone bills. Late payments generally stay on your file for 2 years.
- 2Consider reducing your credit card balances. High utilisation (using more than 30% of your limit) may signal risk to lenders.
- 3Try to avoid applying for multiple credit products in a short period. Each application typically triggers a hard enquiry.
- 4Consider keeping old credit accounts open — a longer credit history can often help your score.
- 5Check your credit report for errors. Inaccurate defaults or wrong personal details are more common than you might expect.
- 6Consider paying off any outstanding defaults if possible. Even partial payment may help in some cases.
- 7Give it time — consistent, positive behaviour over 6–12 months can make a measurable difference.
What NOT to Do Before Applying
- Apply at multiple lenders simultaneously — this can stack hard enquiries on your file
- Take out new credit cards or buy-now-pay-later accounts where possible
- Miss repayments on any existing obligation, even if it may seem minor
- Change jobs immediately before applying — some lenders may require 6 months in a role
- Make large unexplained cash deposits or withdrawals from your bank account
Credit Sense — Know Before You Apply
Our Credit Sense service gives you a full picture of your credit profile before any application is submitted. We identify issues, advise on timing, and structure your application to give you the best chance of approval at the best rate.
How Long Does It Take?
Improving a credit score generally takes time. Minor improvements from paying down balances may show within 30–60 days. Negative listings like defaults typically stay on your file for 5 years, though their impact may diminish over time with consistent positive behaviour.
If you're not sure where you stand, the best first step is to request a free copy of your credit report through Equifax, Experian, or Illion — you're entitled to one free report per year from each.
Smartway Finance Team
Gold Coast Finance Broker · ACL #566769
