For those of you who pay your credit cards late you’ve been warned. From 12 March 2014 Australia will introduce a new credit rating regime. Individuals will now be rated similar to companies, which banks and other lending facilities can use a quick reference before approving a loan.

Carefully managing your credit reputation will be more important than ever. Credit providers will be able to identify if you have applied for multiple loans or credit cards, what your limit on each card is, whether you use up to your limit, whether you’ve paid off your loans and if they’ve been late just how long your repayments took. For example, a late credit card repayment of 5 days will be recorded on your report card and in the event a repayment of more the $150 is greater than 60 days overdue you will be recorded as a default.

Companies such as Veda Group and Dun & Bradstreet will be able to provide you with your credit report card. Veda Group is providing one free report card per year.

So then, what are the do’s and don’t to achieve a good credit score:


  • Pay your credit card on time – set up automatic debits. This also extends to phone bills, electricity etc.
  • Reduce the number of credit cards or lines of credit – by having multiple cards or even churning cards will make you look desperate and appear on your credit report.
  • Manage your credit file – Veda offers one free report per year. Make getting your report a part of completing your tax return each year.
  • If you are going to default organise with your credit provider to repay smaller amounts.


  • Leave your credit card repayments more than 5 days late.
  • Apply for a number of different loans or credit cards, especially if you do not need it.
  • Be greater than 60 days late for an amount more than $150 – if so you will be recorded as a default.
  •  Share credit card or personal details on social media websites.

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Thomas Jacks BCom (Acc), SMSF SpecialistTM, Adv. Dip F.S. (FP)
“I want to be able to assist clients with their investment and retirement planning by providing real strategy advice. It’s my aim to not only help my clients but to educate them by addressing the entire picture” Google Plus

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