General Information only.
Panthera Finance is not a financial adviser. The information contained below is general in nature and is not personal financial advice. Therefore, you should consider seeking independent financial advice to determine if the information below is appropriate for your personal circumstances.

A credit score or credit rating is a document that is used by financial and utility companies to understand your financial position to repay a debt.

The score can range depending on the provider between 0 and 1200.

The higher your score, the more ‘attractive’ you may be to lenders as you demonstrated that you are able to repay your debts quickly. The score is calculated by some financial algorithms that try to predict the probability that you will be 90 days late on a bill in the next 24 months, based on your previous financial history.

Before we go through ways to improve your credit scores, let’s first identify the ways that negatively affect your score.

Below is a quick list of the top 5 reasons why your score may be low:

1. You’ve had trouble in repaying your credit card or loans on time.
2. You’ve applied for too many credit cards in a short amount of time.
3. You regularly late in paying your bills.
4. You maintain a high balance on your credit card instead of paying it down.
5. Your employment history changes often.

Okay, now the information you are after.

How do I improve my credit score?
It won’t happen overnight; it will take time and it will be up to you and how you look after your finances.  Below are some suggested ways to help you improve your score:

1. First, check your credit score yourself and see if it is accurate. Ensure that debt amounts are correct as well as the loans you took out, you actually did. You’ll also be able see if any repayments you may have If you have concerns about whether any information on your credit report is inaccurate, out of date or incomplete contact the relevant creditor or the relevant Credit Reporting Body.
2. Don’t miss your payments – ensure that you don’t miss your repayments. If you foresee that you will struggle to make your repayments, call your creditor as soon as you can and let them know.
3. Seek independent advice on whether it is necessary to apply for multiple credit cards, including Store Cards. Each time you apply for a credit card, your score drops.  So, if you are wanting to play a numbers game in hoping that you will get approved, by your third application, your banks may notice what is happening and your chances of getting a credit card may be impacted
4. Seek independent advice on how to pay down your credit cards. If you can keep your credit card off its maximum limit and constantly reduce it, this shows that you can paydown your debts.
5. Seek independent advice on whether not it is necessary for you to apply for new credit
6. If you are suffering from financial hardship, let your banks know, they may be able to freeze interest rates for you for a while.
7. If you are not able to repay your debts due to financial hardship, consider engaging a Financial Counsellor. The National Debt Helpline org.auis a good place to find a counsellor. They are open Monday to Friday From 9.30am to 4.30pm.

If you are a current customer of Panthera Finance and your financial circumstances change, we recommend that you contact us first, so we may be able to work with you in finding a more sustainable solution.