Essential Tips to Avoid 5 Common Credit Killers and Boost Scores

5 Credit Killers

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

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?

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!

... start your free debt analysis ...

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

Rate this article

0 Comments

No comments yet. Be the first to share your thoughts.

Business Loans Articles

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

Commercial Property Financing: Top Strategies for Aussie Entrepreneurs

In the entrepreneurial world, securing the right type of financing can be the catalyst for substantial business growth and success. Commercial property financing in Australia encompasses a range of options tailored to meet the diverse needs of businesses, each with its own set of advantages and intricacies. This article delves into the heart of strategic financing, providing Aussie entrepreneurs with guidance on navigating this vital aspect of their business ventures. - read more

Understanding Business Loan Repayments: Fixed, Variable and Flexible Options

Business loan repayments are the regular payments made to repay a loan over an agreed period. Depending on the loan product, repayments may include both the loan principal and interest, and the repayment structure can vary between lenders. - read more

The Role of Refinancing in Sustaining Business Growth

Loan refinancing is a financial strategy where existing debts are replaced with new ones, usually with different terms and conditions. While it might seem like just swapping one loan for another, the nuances can be game-changers for businesses. Refinancing often provides a chance to improve borrowing conditions, such as reducing interest rates, altering loan durations, or switching to a more favourable lender. - read more

Breaking Down Barriers: How to Overcome Delays in Business Loan Approvals

Embarking on a business endeavor often requires substantial financial support, and securing a business loan can be a crucial step towards progress and expansion. A well-prepared loan application not only showcases your business in its best light but also significantly enhances the prospects of obtaining the needed funds. Attention to detail and a thorough understanding of the lending process can streamline your journey to approval. - read more

How to Compare Business Loan Features Before You Apply

Comparing business loan features is an important part of understanding the different finance options available to your business. Loan products vary between lenders, with differences in interest rates, fees, repayment terms, borrowing limits and eligibility criteria. - read more

Mezzanine Finance: A Strategic Tool for Business Growth through Acquisition

Mezzanine finance represents a sophisticated instrument within the realm of corporate finance, often utilized as a strategic tool when more traditional forms of capital are not ideally suited or are insufficient for a firm's needs. Inherently, it serves as a hybrid between debt and equity financing, tailored to support growth initiatives such as business acquisitions. - read more

Finance News

Small Business Tax Debt Crackdown Sharpens Cash Flow Focus

07 Jul 2026: Paige Estritori

Australian small businesses may soon face a more disciplined tax debt collection environment, after the Australian National Audit Office found the ATO needs clearer targets for reducing collectable small business debt. The issue is substantial: small business collectable tax debt stood at $35.9 billion in 2024-25, representing about two-thirds of total collectable tax debt. - read more

Record Commercial Card Debt Points to Fresh SME Cashflow Pressure

30 Jun 2026: Paige Estritori

Australian small businesses are showing another sign of financial strain, with commercial credit card debt reaching a record level at the end of June. New analysis from Credit 2024 and Primara Research indicates total commercial card debt has climbed to about $2.26 billion, with almost a quarter of that sitting in high-interest balances rather than being cleared quickly. - read more

RBA Rate Pause Gives Businesses Time to Reassess Debt

23 Jun 2026: Paige Estritori

The Reserve Bank of Australia’s decision on 16 June 2026 to leave the cash rate unchanged at 4.35% marks the first pause after three consecutive increases this year. For Australian business owners, the hold is not exactly relief, but it does create a short window to review debt settings before the next policy move. - read more

Cigno Australia and BSF Solutions Penalised for Unlawful Payday Lending Practices

16 Jun 2026: Paige Estritori

In a significant ruling, the Federal Court has imposed a $7 million fine on Cigno Australia and BSF Solutions for operating an illegal payday lending scheme that contravened Australian credit laws. Each company has been ordered to pay $3 million, while their respective directors, Mark Swanepoel and Brenton Harrison, have been fined $500,000 each. - read more

ANZ Tops Major Banks in Business Lending Expansion for April 2026

16 Jun 2026: Paige Estritori

In April 2026, the Australia and New Zealand Banking Group (ANZ) achieved the highest monthly growth in business lending among the nation's major banks. According to the Australian Prudential Regulation Authority (APRA), ANZ's business lending portfolio increased by $1.9 billion, reaching a total of $152.9 billion, marking a 1.24% growth for the month. - read more

Australian SMEs Reduce Borrowing Amid Economic Uncertainty

16 Jun 2026: Paige Estritori

Recent data from non-bank lender Banjo Loans indicates a decline in borrowing activity among Australian small and medium-sized enterprises (SMEs) during the final quarter of 2025. The Banjo Barometer for Q2 FY26 reports a 5% decrease in SME loan applications, following a 14% spike in the previous quarter. - read more

Non-Bank Lenders Advocate for Inclusion in Economic Resilience Program

09 Jun 2026: Paige Estritori

Non-bank lenders are urging the Australian government to include them in the $1 billion Economic Resilience Program, emphasizing their crucial role in providing financing to small and medium-sized enterprises (SMEs). This program aims to bolster businesses affected by economic challenges, and non-bank lenders argue that their participation would enhance the program's effectiveness. - read more

Click for more Finance News

Need Help Finding a Loan?

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

Knowledgebase

Debt-to-Income Ratio (DTI):
A personal finance measure that compares an individual's monthly debt payment to their monthly gross income.