Business Loans Australia :: Articles

5 Credit Killers

What are the top factors that can damage your credit score?

5 Credit Killers

The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.

A good credit score speaks volumes about your financial habits. It's the evidence most creditors need to evaluate your credit worthiness.
Interestingly, there are some credit killers that even people maintaining good credit scores would unwittingly be a part of, which will be their undoing when applying for credit facilities in the future.
These mistakes may seem to be insignificant, but when the time comes, you may face more problems than you expect.

Avoiding Debt

Creditors need to evaluate your financial history to approve any credit facilities.
If you have no previous or existing debts, it might adversely affect your case, as creditors have no way of checking out how you'll handle the credit you get from them.

Shopping For Rates

Looking around for the best rate may actually turn out to be bad.
Debt Stressed?
Image for Debt Stressed?If you're struggling to pay your debts and covering living expenses, we're here to help. Through our national panel of Debt Management specialists, we can help customers with $10k or more in debt by consolidating your existing loans, stopping Debt collectors from contacting you and re-negotiating repayments on your terms!
Too many inquiries within a short period could damage your credit score.
Usually, if you do more than 3 or 4 inquiries within a single month, you are likely to scare the lenders. For the same reasons, transferring the balances on your credit cards could be a bad idea as well.

Assuming There's a Grace Period

If you are late on a payment by even one day, you are late, period.
Never assume there's a grace period for late payments, because it only affects your credit score negatively.

Closing Old Accounts

Because your relevant transaction history also gets erased when you close your old accounts, your credit history is shortened and it may lower your credit score.
If you want to close your old accounts, close everything except the oldest account, which will leave a longer history.

Co-signing Loans

The obvious problem here is that the primary borrower's mistakes will end up on your credit report as well.

Published: Sunday, 1st Aug 2021
Author: Paige Estritori


Business Loans Articles

How to Improve Your Credit Score Before Applying for a Business Loan
How to Improve Your Credit Score Before Applying for a Business Loan
Your credit score is a crucial factor that lenders examine when you apply for a loan. It acts as a numerical representation of your creditworthiness, helping lenders to determine the risk involved in offering you a loan. Essentially, it helps them predict your ability to repay the loan based on your past financial behaviour. - read more
Common Mistakes to Avoid When Evaluating Your Refinancing Options
Common Mistakes to Avoid When Evaluating Your Refinancing Options
Refinancing can be a powerful tool for small and medium enterprises (SMEs) in Australia. It offers an opportunity to restructure debt, potentially secure better interest rates, and the possibilities of improved cash flow - all critical elements for maintaining and growing a business. Given the dynamic nature of financial markets, refinancing can provide businesses with a strategic advantage to manage their finances more effectively. - read more
Alternative Funding Options for Your Australian Business
Alternative Funding Options for Your Australian Business
When it comes to starting or expanding a business in Australia, securing funding is often a top priority. However, traditional funding options, such as bank loans or government grants, can be difficult to obtain for small businesses. - read more
Maximizing Your Chances of Approval for a Startup Loan in Australia
Maximizing Your Chances of Approval for a Startup Loan in Australia
Securing financing is a pivotal step for any startup looking to establish itself and grow. In Australia, the startup lending landscape is buoyant, offering a mix of traditional and innovative financing options. The financial ecosystem is robust yet competitive, and understanding how to navigate it is crucial for new business owners. - read more
From Application to Expansion: The Complete Roadmap to a Successful Business Loan Journey
From Application to Expansion: The Complete Roadmap to a Successful Business Loan Journey
For many Australian entrepreneurs, a business loan is a vital step towards achieving growth and success. Access to capital can fuel expansion, help manage cash flow, and provide the necessary resources to capitalize on new opportunities. However, navigating the journey from application to approval, and eventually, to expansion, presents its own set of challenges. - read more
Unlocking Cash Flow: How Equipment Leasing Can Benefit Your Australian Business
Unlocking Cash Flow: How Equipment Leasing Can Benefit Your Australian Business
In the ever-evolving landscape of Australian business, equipment leasing has emerged as a pivotal financial tool for companies across the spectrum. Whether you're a small start-up or a well-established corporation, the agility to pivot and adapt to market changes is critical. This introduction seeks to shed light on the concept of equipment leasing and its significance in bolstering the operational efficiency of Australian businesses. - read more
Secured vs Unsecured Business Loans: Which is Right for You?
Secured vs Unsecured Business Loans: Which is Right for You?
In Australia, business loans are a crucial tool for companies looking to grow, expand, or manage cash flow. From small enterprises to large corporations, securing funding can mean the difference between success and failure. The financial landscape is diverse, offering various loan options tailored to different needs and business models. - read more

Finance News

Renown Lending Boosts SME Funding Pool to $400 Million
Renown Lending Boosts SME Funding Pool to $400 Million
30 Mar 2026: Paige Estritori
In a significant move to support small and medium-sized enterprises (SMEs) across Australia, Renown Lending has expanded its funding pool from $250 million to $400 million. This increase aims to provide fast and flexible financing solutions to businesses nationwide, addressing the growing demand for accessible funding options. - read more
NAB Continues to Lead Australia's Expanding Business Lending Market
NAB Continues to Lead Australia's Expanding Business Lending Market
30 Mar 2026: Paige Estritori
Australia's business lending landscape has reached a significant milestone, with authorized deposit-taking institutions (ADIs) reporting a combined total of $1.2 trillion in loans to non-financial businesses as of January 2026. This marks a 9.3% increase over the previous year and a substantial 53.9% growth since January 2020. - read more
RBA Reports Surge in Non-Bank Business Lending
RBA Reports Surge in Non-Bank Business Lending
30 Mar 2026: Paige Estritori
The Reserve Bank of Australia (RBA) has observed a notable increase in business credit, particularly from non-bank lenders, in its February 2026 Bulletin. This growth is attributed to heightened competition among established lenders and the expansion of specialist non-bank and private credit lenders. - read more
Liberty Financial's Expansion in SME and SMSF Lending Markets
Liberty Financial's Expansion in SME and SMSF Lending Markets
22 Mar 2026: Paige Estritori
Liberty Financial Group has reported significant growth in its lending to small and medium-sized enterprises (SMEs) and self-managed super funds (SMSFs) in its half-year results ending December 31, 2025. The company's net profits after tax rose to $76.4 million, up from $67.7 million in the previous six months, driven by increased lending in these sectors. - read more
Rate Money's Competitive Edge: Lower Rates for Self-Employed Borrowers
Rate Money's Competitive Edge: Lower Rates for Self-Employed Borrowers
22 Mar 2026: Paige Estritori
Rate Money, a non-bank lender specializing in loans for self-employed individuals, has announced significant reductions in interest rates across its 'Evolve Easy Doc' range. Effective June 30, 2025, new rates start from 6.64% per annum, with the 'Easy Doc One Year' product now beginning at 6.09% per annum. - read more
NAB Continues to Dominate Australia's Expanding Business Lending Market
NAB Continues to Dominate Australia's Expanding Business Lending Market
06 Mar 2026: Paige Estritori
In January 2026, Australia's business lending landscape reached a significant milestone, with authorised deposit-taking institutions (ADIs) reporting a combined total of $1.2 trillion in loans to non-financial businesses. This marks a 9.3% increase over the previous year and a substantial 53.9% growth since January 2020. Among the major players, National Australia Bank (NAB) continues to lead, boasting a loan book of $261.1 billion, reflecting an 11.6% year-on-year growth. - read more
Westpac's Bold Move to Reinforce Its Business Lending Focus
Westpac's Bold Move to Reinforce Its Business Lending Focus
06 Mar 2026: Paige Estritori
In a strategic effort to bolster its presence in the business lending sector, Westpac Banking Corporation has announced a significant restructuring of its operations. The bank plans to replace a substantial number of in-branch tellers with business bankers, aiming to enhance support for small and medium-sized enterprises (SMEs) across Australia. - read more

Need Help Finding a Loan?
Loan Amount:
Postcode:

All quotes are provided obligation-free by a participating broker from our national referral partner network. We respect your Privacy.

All finance quotes are provided free (via our secure server) and without obligation.
We respect your privacy.

Knowledgebase
Subprime Loan:
A type of loan offered to individuals with poor credit scores, typically at a higher interest rate.