A significant portion of Australians are concerned about the impact their credit score will have on their dealing with lenders.
The survey of more than 2,000 people by finder.com.au revealed that 25% of Australians fear their credit score could see their loan or credit card application being rejected.
According to the survey, 67% of Australians have no concerns around their credit score, while 8% have ‘no opinion’ on what consequences their credit score might have on their ability to borrow.
Finder.com.au claims 9% of Australians have had a loan or credit card rejected because of their credit score.
Bessie Hassan, finder.com.au money expert, said it’s unsurprising so many Australians are worried about their credit scores given the fact many still have a poor understanding of what it entails.
“There are still many of us in dark when it comes to credit scores,” Hassan said.
“People often don’t realise the consequences of a poor credit history until they get knocked back applying for credit. A shaky history of paying bills on time and outstanding debt directly impacts your credit score,” she said.
For those borrowers who do secure a loan with bad credit score, Hassan said they will likely be forced to deal with lenders who offer higher interest rates.
While a bad credit score could come back to cost borrowers in the long run, Hassan said there are some steps borrowers can take to reverse the damage.
“The first step Aussies could make is to pay bills on time and lower unused credit card limits," she said.
“There’s no quick fix, credit scores take into account years of past behaviour, but there’s no time like the present to change."