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.

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

Understanding the Essential Documents Needed for a Successful Loan Application

When it comes to applying for a loan, having the right documents is crucial. Whether you're looking to buy a home, start a new business, or refinance an existing loan, documentation can make or break your application. It serves as evidence of your financial health, providing lenders with a clear picture of your ability to repay the loan. - read more

Equipment Leasing for Australian Businesses: Cash Flow, Costs and Key Considerations

Equipment leasing can help Australian businesses access vehicles, machinery, technology or other essential assets without paying the full purchase price upfront. This guide explains how leasing works, how it may affect cash flow and budgeting, and what to consider before choosing a lease arrangement. - read more

How Business Loan Interest Rates Work in Australia

Business loan interest rates in Australia vary because lenders price each loan according to the product, market conditions, business risk, security, loan term and the applicant's financial position. Understanding these factors can help SMEs compare loan offers more confidently. - read more

Financial Planning for Business Growth: A Blueprint for Expanding Enterprises

Financial planning becomes increasingly important as a business prepares to expand. A practical financial plan can help an enterprise allocate resources, assess funding needs, manage cash flow and prepare for risks that may arise as operations scale. - read more

Understanding Business Loan Repayments: How Repayment Amounts Are Calculated

Business loan repayments are shaped by the amount borrowed, interest rate, loan term, repayment frequency, fees and repayment structure. Understanding how these factors interact can help Australian business owners estimate affordability and compare loan options more confidently. - read more

Business Loan Eligibility Criteria in Australia: What Lenders Commonly Assess

Business loan eligibility in Australia depends on a lender's assessment of your business finances, credit profile, repayment capacity, loan purpose, security and supporting documents. Understanding these common criteria can help you prepare before applying. - read more

Business Liquidity Financing Options in Australia

Liquidity is a vital part of business financial health. It describes how readily a business can meet short-term obligations, manage cash flow and respond to changing conditions without unnecessary financial strain. - read more

Finance News

Payment Delays Put Working Capital Back on the SME Agenda

12 Aug 2026: Paige Estritori

Late invoice payments are again emerging as a practical funding issue for Australian small and medium-sized businesses, with fresh industry commentary pointing to continued pressure across trade payments, cash reserves and day-to-day operating liquidity. For business owners, the message is clear: revenue on paper is not the same as cash in the bank. - read more

Rising Business Failure Risk Puts Cash Flow Back in the Lending Spotlight

04 Aug 2026: Paige Estritori

Fresh business risk signals are reinforcing a clear message for Australian SMEs: access to credit is still available, but lenders are likely to keep asking harder questions about cash flow, repayment capacity and the resilience of each borrowerâ€™s operating model. The latest commentary around business failures, trade payment pressure and sector-specific insolvency risk points to a market where credit decisions are becoming increasingly evidence-led. - read more

Business Borrowing Momentum Is Becoming More Selective

28 Jul 2026: Paige Estritori

Australia's business lending market appears to be entering a more selective phase, with the latest banking signals pointing to a widening gap between larger companies still seeking capital and smaller firms taking a more cautious approach. While credit is not disappearing, lenders are increasingly focused on serviceability, cash flow consistency and the purpose behind each new facility. - read more

Small Firms Tap the Brakes on Borrowing in June

21 Jul 2026: Paige Estritori

Australian small businesses appear to be moving into a more defensive phase, with new Equifax data for June 2026 pointing to a sharp divide between larger companies still borrowing for expansion and SMEs conserving cash. The latest Business Market Pulse suggests overall business loan demand is still growing, but at a slower pace than the stronger credit activity recorded late last year. - read more

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 Australiaâ€™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

Click for more Finance News

Need Help Finding a Loan?

Start here

Let us help you explore your business finance options.

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

Knowledgebase

Asset-Backed Security (ABS):
A financial security backed by a pool of assets, such as loans, leases, credit card debt, royalties, or receivables.