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.

Australian Internet Loans Weekly News Insights

Podcast Cover Image This week: the RBA lifted the cash rate, so borrowers should model higher repayments and compare total loan costs, not just headline rates. Woolworths Everyday Rewards launched a mortgage‑points tie‑up with platform Middle—useful, but dont let perks trump rate, fees and features. Property values keep sliding, yet home insurance premiums are still rising, so build realistic cover costs into loan budgets. And a Vinted impersonation scam is hitting Australians; protect your ID to avoid delays on future loan applications. Visit internet‑loans.com.au for guides, calculators and MoneyTips.

Listen to this week's episode

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

Rate this article

0 Comments

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

Finance News

Why Borrowers Should Recheck Buffers After the November Hike

04 Nov 2026: Paige Estritori

The Reserve Bank of Australia’s 3 November 2026 decision to lift the cash rate target by 25 basis points to 4.85 per cent has added a fresh layer of pressure for Australians comparing personal, vehicle and business finance. The move, effective from 4 November, follows the September increase and confirms that borrowing conditions remain highly sensitive to inflation data, funding costs and lender risk settings. - read more

Why the September Rate Rise Changes Loan Planning

28 Oct 2026: Paige Estritori

The Reserve Bank of Australia’s 29 September 2026 decision to lift the cash rate by 25 basis points to 4.60 per cent has put borrowing costs back at the centre of household and business planning. While the cash rate is not the only factor behind loan pricing, it influences funding costs and can flow through to variable rates, new fixed-rate offers and lender appetite for risk. - read more

Why Car and Equipment Borrowers Should Check the Final Payout

16 Sep 2026: Paige Estritori

Recent vehicle finance commentary has put balloon and residual payments back in the spotlight, particularly for Australians considering cars, utes, vans, trucks or business equipment. The issue is not that balloon structures are inherently unsuitable. Used carefully, they can help borrowers manage cash flow by lowering regular repayments. The risk is that the smaller monthly figure can distract from the larger amount still payable at the end of the loan or lease term. - read more

Click for more Finance News

Finance Articles

Emergency Financial Plans: Preparing for Loan Challenges in Hard Times

Economic downturns and recessions are part and parcel of the financial landscape. At some point, every economy experiences periods of decline, which can have widespread impacts on businesses and individuals alike. - read more

Avoiding Common Pitfalls: Mistakes to Watch Out for in Budgeting

Today, we're diving into one of the most crucial aspects of personal finance: budgeting. Whether you're managing a household or planning for future goals, knowing how to budget effectively can be a game-changer. - read more

The Pros and Cons of Refinancing Your Loan in Australia

Loan refinancing involves replacing an existing loan with a new one, usually to achieve better terms. It allows borrowers to access new loan agreements that could potentially offer lower interest rates, better repayment conditions, or additional financial benefits. - read more