Are you thinking of borrowing money? If you are, you’ll need to have an excellent credit rating. This is essentially a number based on your borrowing and repayment history. In Australia, we have what’s known as Comprehensive Credit Reporting (CCR), which captures your positive credit conduct and any negative financial behaviour. It’s what banks and financiers refer to when considering whether or not to support you with a loan. Good or bad, your credit report records your credit activities, including things like credit liability accounts (including dates opened and closed), monthly repayment history (on loans and credit cards), overdue accounts such as defaults, payments for utilities like power, water and rates, and public record information such as court judgements, directorships, proprietorship details and personal bankruptcies and insolvencies. A favourable credit report will help you secure loans, including a mortgage, at better interest rates, secure a rental, and influence an employer’s decision to take you (you’ll be seen as lower risk). Things that will damage your credit report are behaviours that indicate financial duress, including applying for too many loans, excessive applications to transfer balances from one account to another, pay date loans, buy now pay later arrangements, missed loan repayments, late payment of bills, and court judgements. If you move house (or business premise), be sure to change your address for all creditors, as a missed account due to a change of address is no excuse! Errors can occur, so it’s a good idea to check your credit report from time to time. You can generally get a free copy of your credit file once a year from one of the three credit reporting agencies to ensure the information held is correct. Those three credit reporting agencies that collect your data are Equifax (formerly VEDA), Illion (formerly Dunn & Bradstreet) and Experian. Check them out. We Can Help You Stay on Top of Your Obligations Working as a contractor can involve seemingly endless amounts of administration. At the Ayers Group, we can help you keep on top of all your work-related obligations, including managing your contracts, invoices and expense claims. Talk to an expert at The Ayers Group today.