Your credit score can decide which lenders will deal with you, and on what terms. It isn’t fixed. Ordinary habits move it, and most are in your control well before you apply.
What drags it down
- Missed repayments. Loans and cards, but phone and power bills too. Late payments get reported.
- Defaults and court judgments. An unpaid bill that goes to collections can sit on your file for years.
- Balances near the limit. Maxed-out cards and buy-now-pay-later drag your score down even when you pay on time.
- Constant changes. Frequently changing address, job or bank makes your file look unstable.
The enquiries that close doors
Every application leaves a hard enquiry, and a cluster in a few weeks looks like financial stress. Some enquiries do far more damage than others:
- Buy now, pay later. Signing up to Zip Pay, Afterpay, Klarna, PayPal Pay in 4 and the rest leaves an enquiry that can knock off as much as 50 points, and some lenders won’t deal with you at all if they see one. Old, unused accounts can keep re-checking your file, so close them.
- Payday lenders and cash loans. Places like Cash Converters put an enquiry on your file even if you were only looking. We’ve had strong customers we couldn’t place the way they deserved because of a single one.
- “Funded in 24 hours” business lenders. In our experience a loan, or even just an enquiry, closes the door with most mainstream lenders. If the business needs cash, look at the cheaper structured options first.
- “See what you can borrow” tools. They record a credit enquiry, and two of them can put some lenders off entirely, even if both were big banks. We can check what you’d qualify for without touching your file: see shopping for finance without wrecking your credit file.
Your personal file counts for the business too
Even when the loan is in your company or trust name, lenders almost always read the director’s personal credit file. On most business asset finance the director personally guarantees the loan. Keep your personal file clean and the business borrows more easily.
How to lift your score
- Check your report. Each credit reporting body (Equifax, Experian and illion) offers a free report, usually once every three months. Errors are common, and disputing a wrong listing is often the fastest win.
- Pay down card and overdraft balances, even without closing the accounts.
- Pay everything on time, including phone and utility bills.
- Stay put. A stable address, and an ABN with a solid trading history, both help.
There’s no legitimate shortcut. Be wary of anyone promising to “repair” your score for a fee.
Need finance before your score catches up?
A larger deposit or a low-doc option can open approvals that wouldn’t otherwise be there. With a panel of 40+ lenders, we match your file to a lender whose policy fits, rather than you applying blind.
We’re brokers, not a credit repair service, and we won’t promise an outcome before we’ve seen your file. Buying a truck, vehicle or equipment? Run the numbers on our calculators, then call us.
General information only, not personal credit advice. Talk to us or a qualified adviser about your own situation.
Common questions
How long does it take to improve your credit score?
There’s no fixed timeline. A corrected error can lift it within weeks, lower card balances show up over one to a few billing cycles, and most negative listings fade over one to several years.
Does checking your own credit score lower it?
No. Checking your own score or report isn’t a credit enquiry, so check it as often as you like, ideally a few months before you apply.
What credit score do I need for a car loan?
There’s no single number. Each lender sets its own minimum and looks at your whole file, and a higher score opens up more lenders and often a better deal.
Does your credit score affect your interest rate?
It can. Some lenders price loans by credit score, while others set a minimum and price everyone who clears it the same way.
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