Welcome to Credit Connection’s guide on how to improve your credit score in 30 days!

Your credit score is a crucial component of your financial health and understanding how it works is essential for managing your credit effectively. In Australia, credit scores are used by lenders to assess your creditworthiness and determine your eligibility for loans, credit cards, and other forms of credit.

A good credit score can open doors to better loan terms, lower interest rates, and higher credit limits, while a poor credit score can limit your borrowing options and result in higher interest rates. Therefore, maintaining a good credit score is paramount for achieving your financial goals.

credit score graph


Understanding Your Credit Score

At Credit Connection, we believe that everyone has the power to take control of their credit score and improve it, even in a short timeframe.

In this article, we will provide you with practical tips and strategies to boost your credit score in just 30 days. So, let’s dive in and discover how you can elevate your credit score and enhance your financial well-being!

Understanding how your credit score is calculated is crucial to improving it.

The credit scoring system in Australia takes into account several key factors, including:

Payment History: Your payment history is one of the most significant factors that impact your credit score. It reflects whether you have paid your bills on time, including credit card payments, loan repayments, and utility bills. Late payments or defaults can negatively impact your credit score, so it’s essential to pay all your bills on time to maintain a positive payment history.

Credit Utilisation: Credit utilisation refers to the amount of credit you are using compared to your total available credit limit. High credit utilisation, where you are using a large portion of your credit limit, can negatively affect your credit score. Keeping your credit utilisation below 30% is generally recommended to maintain a healthy credit score.

Length of Credit History: The length of your credit history is another important factor that affects your credit score. Lenders prefer borrowers with a longer credit history, as it provides them with more data to assess creditworthiness. If you are new to credit, building a positive credit history over time can help improve your credit score.

Types of Credit: The types of credit you have, such as credit cards, loans, and mortgages, can also impact your credit score. A diverse credit mix, including both revolving credit (e.g., credit cards) and instalment credit (e.g., loans), can be seen as positive by lenders. However, it’s important to manage all types of credit responsibly to maintain a good credit score.

Recent Applications: Making multiple credit applications in a short period can negatively impact your credit score. When you apply for credit, it triggers a credit inquiry, which can lower your credit score. Therefore, it’s advisable to limit the number of credit applications you make, especially within a short timeframe, to protect your credit score.

By understanding these factors that affect your credit score, you can identify areas that need improvement and take proactive steps to boost your credit score.

Why Improve Your Credit Score?

Maintaining a good credit score is essential for your overall financial health. A higher credit score can bring numerous benefits, while a poor credit score can have significant consequences. Let’s explore why improving your credit score is crucial.

Benefits of a Good Credit Score: Having a good credit score opens doors to better financial opportunities. Lenders use credit scores to assess your creditworthiness, and a higher credit score can result in:

Better Loan Terms: With a good credit score, you may qualify for loans with favourable terms, such as lower interest rates, longer repayment periods, and higher loan amounts. This can save you money in interest payments and make borrowing more affordable.

Lower Interest Rates: A higher credit score can lead to lower interest rates on credit cards, loans, and mortgages. This means you’ll pay less in interest over time, which can save you thousands of dollars.

Higher Credit Limits: A good credit score may result in higher credit limits on credit cards and lines of credit. This can provide you with more flexibility in managing your finances and can be helpful in emergencies or for making large purchases.

Consequences of a Poor Credit Score: On the other hand, a poor credit score can have negative impacts on your financial situation, including:

Higher Interest Rates: With a poor credit score, lenders may consider you a higher risk, and as a result, you may be offered loans or credit with higher interest rates. This can increase your borrowing costs and make it more expensive to repay debt.

Limited Credit Options: A low credit score can limit your access to credit options, making it difficult to obtain loans, credit cards, or other credit products. This can restrict your financial flexibility and make it challenging to meet your financial goals.

Difficulty in Obtaining Loans or Credit: Lenders may be hesitant to approve your loan or credit application with a poor credit score, or they may require additional collateral or higher down payments. This can make it harder to obtain financing for important life milestones, such as buying a home or starting a business.

Improving your credit score can help you unlock better financial opportunities and avoid the negative consequences of a poor credit score. With a clear understanding of the benefits of a good credit score and the consequences of a poor credit score, let’s now move on to practical tips on how to improve your credit score in just 30 days!

Assessing Your Current Credit Situation

Before you start taking steps to improve your credit score, it’s crucial to assess your current credit situation. This involves checking your credit report and score, identifying negative factors affecting your credit score, and reviewing outstanding debts, late payments, and credit utilization.

Checking Your Credit Report and Score: Obtain a copy of your credit report from a credit reporting agency in Australia, such as Equifax, Experian, or Illion. Review your credit report carefully to ensure all the information is accurate and up-to-date. Check for any errors, such as incorrect personal information, accounts that don’t belong to you, or late payments that were reported incorrectly. Also, check your credit score, which is a numerical representation of your creditworthiness. Understanding your credit report and score is the first step in improving your credit situation.

Identifying Negative Factors Affecting Your Credit Score: Once you have your credit report and score, identify any negative factors that may be impacting your credit score. These can include late payments, defaults, high credit utilization, and other negative marks on your credit report. Understanding these negative factors will help you target specific areas that need improvement.

Reviewing Outstanding Debts, Late Payments, and Credit Utilisation: Take a close look at your outstanding debts, late payments, and credit utilization. Make a list of all your debts, including credit cards, loans, and other lines of credit. Note any late payments or defaults and assess your credit utilisation, which is the percentage of your available credit that you are currently using. High credit utilisation can negatively impact your credit score. Reviewing these details will help you identify areas where you can make improvements and develop a plan to address them.

By thoroughly assessing your current credit situation, you’ll have a clear understanding of the negative factors affecting your credit score and be better equipped to take targeted steps to improve your credit in the next 30 days.

improve credit score tips

Implementing Credit Repair Strategies

Once you have assessed your current credit situation and created a plan, it’s time to implement credit repair strategies that can help you improve your credit score. Here are some tips and strategies to consider:

Improving Payment History: Payment history is a crucial factor that affects your credit score. Make sure to pay all your bills on time, including credit card payments, loan payments, and utility bills. Late payments can have a significant negative impact on your credit score. Consider setting up automatic payments or reminders to ensure you never miss a payment.

Strategies for Reducing Credit Utilisation: Consider paying down balances on your credit cards and reducing your overall debt to lower your credit utilisation. You can also request a credit limit increase, which can help improve your credit utilisation ratio.

Lengthening Credit History: The length of your credit history also plays a role in determining your credit score. Keeping older credit accounts open can positively impact your credit score. Avoid closing old credit accounts, even if you are not using them actively. This shows a longer credit history, which can be beneficial for your credit score.

Diversifying Credit Types: Having a mix of credit types, such as credit cards, loans, and mortgages, can positively impact your credit score. It shows that you can manage different types of credit responsibly. If you only have one type of credit, consider diversifying your credit portfolio by adding another type of credit, if it makes sense for your financial situation.

Managing Recent Credit Applications: Avoid applying for multiple credit accounts within a short period of time, as it can negatively impact your credit score. Each time you apply for credit, it results in a hard inquiry on your credit report, which can lower your credit score. Be mindful of applying for new credit and only do so when necessary.

Remember, it’s important to be patient and consistent with these strategies, as credit score improvement is a gradual process.

Monitoring Your Progress

Once you have implemented your credit repair strategies, it’s important to monitor your progress regularly. Keep track of your credit score and credit report to ensure that the changes you’ve made are positively impacting your credit health. Review your credit report for any inaccuracies or errors and dispute them if necessary. Monitoring your progress can also help you identify any areas that may need further attention or adjustment in your plan.

Dealing with Negative Entries on Your Credit Report

Negative entries on your credit report, such as late payments, defaults, and collections, can have a significant impact on your credit score. Here are some strategies for addressing these negative entries:

Late Payments, Defaults, and Collections: If you have late payments, defaults, or collections on your credit report, it’s important to address them as soon as possible. Consider contacting the creditors or collections agencies to discuss payment arrangements or settlements. You may be able to negotiate a payment plan that fits within your budget or settle the debt for a lower amount. Be sure to get any agreements in writing and follow through with the agreed-upon payments.

Disputing Inaccuracies or Errors on Your Credit Report: It’s essential to review your credit report regularly for any inaccuracies or errors that may be negatively impacting your credit score. If you identify any discrepancies, such as accounts that don’t belong to you, incorrect payment statuses, or outdated information, you have the right to dispute them with the credit bureaus. Follow the dispute process provided by the credit bureaus and provide supporting documentation to substantiate your claim. The credit bureaus are required to investigate and correct any errors within a certain timeframe.

Negotiating with Creditors for Payment Arrangements or Settlements: If you are struggling to make payments on your debts, consider negotiating with your creditors directly. You may be able to work out a payment arrangement or settlement that is more manageable for your current financial situation. Be honest about your circumstances and provide evidence of your financial hardship. Creditors may be willing to work with you to find a solution that benefits both parties.

Additional Tips and Tricks

In addition to the strategies mentioned above, here are some additional tips and tricks to help you improve your credit score:

Leveraging Financial Tools and Ideas: Consider leveraging financial tools such as debt consolidation or balance transfers to help manage your debts more effectively. Debt consolidation involves combining multiple debts into one, usually with a lower interest rate, which can make it easier to pay off your debts. Balance transfers allow you to transfer high-interest credit card balances to a card with a lower interest rate, reducing the amount of interest you pay over time.

Building Healthy Credit Habits for the Long Term: Improving your credit score is not just about short-term fixes, but also building healthy credit habits for the long term. Practice responsible credit card use and minimise your use of Buy-Now-Pay-Later schemes.

Improving your credit score is a crucial step towards financial success. By following the key strategies outlined in this guide, such as checking your credit report and score, addressing negative entries, creating a plan, implementing credit repair strategies, monitoring your progress, and building healthy credit habits, you can make significant progress in improving your credit score in just 30 days.

So, don’t wait any longer. Take action today and start improving your credit score.

With determination, discipline, and consistent effort, you can achieve a better credit score, which can open doors to better financial opportunities and provide you with the financial freedom you deserve. You have the power to take control of your credit and create a brighter financial future for yourself. Get started now and watch your credit score soar!


According to the latest Australian Bureau of Statistics data released this month, the total value of mortgage refinance loans rose 20% year on year to over $17.1 billion.

10 years ago, that number was $4.99 billion.

Housing refinance increase

We’re seeing more and more clients at Credit Connection who have been sold the idea that they should be refinancing their home loan every 7 years. I’ll show you why refinancing your mortgage isn’t always the best strategy and how it could end up costing you more in the long run.

What is refinancing?

Refinancing involves paying out your existing loan with a new loan. Refinancing requires a new home loan application and your new lender will examine your spending, income and employment history just like your old one did.

Beware of Banks bearing gifts!

Refinancing to a lower home loan rate might seem like a win-win situation, but it actually requires a serious amount of consideration. When you’re considering refinancing your home loan you need to work out whether it will actually improve your circumstances.

Stop before you refinance

While it might sound nice that some banks are offering thousands in cash to refinance your home loan, is it too good to be true?

Unfortunately it’s no surprise that many of the enticements advertised by the banks are attached to uncompetitive products. A cash-back incentive is a juicy looking sugar hit to get borrowers over the line with a short-term feature on a loan that would ultimately cost them more in the long-term.

In short, a cash-back offer for a home loan refinance is a marketing incentive to attract new customers and have your mortgage debt on their books making them money for longer.

Have you thought about why you are refinancing?

Even when mortgage rates are rising, refinancing your mortgage may not be the right idea. The right idea depends on your personal goals, both long and short term.

Is your plan to put an extension on your property? Is your plan to buy and move in a few years’ time? Or is your plan to tap into your equity and buy an investment property? Those things might change what’s best for you.

Do you know your current home loan inside-out?

Worryingly, a recent Finder survey of homeowners revealed that 17% of mortgage holders “have no idea” what their home loan interest rate is. While a further 45% only have a general idea what interest rate they are paying. Only 38% of respondents knew what their exact home loan interest rate was.

Knowledge of home loan rate graph

Refinancing your home loan is not without its pitfalls

Banks don’t do anything that isn’t in their interest in the long-term. Refinancing your home loan without a thorough mortgage review by a professional, could leave you facing a number of unintended consequences.

Pitfall #1: Refinancing your home loan will reset the debt clock

Refinancing your mortgage will result in you resetting the clock on your mortgage debt and ending up at payment square one.

For example, if you have 15 years left on your current 30 year mortgage and refinance into a new 30-year loan, you will be making 15 extra years of loan payments.

Refinancing also resets the amortization schedule of your mortgage so you will be going back to paying a higher percentage of your payment as interest as well. Having a clear sense of how mortgage amortization works is important if you’re trying to pay off your mortgage.

Think of an amortization schedule as the bank’s way of pre-charging you the interest on your loan up front.

When you start paying off your mortgage in year 1, only 25% of your repayment will be going toward paying down the loan principal. 75% of your first year repayments go towards covering interest.

During the first 10 years of your mortgage more than half of your total repayments go towards covering the interest. That’s one of the reasons banks love customers who refinance their home loan regularly.

10 year interest payment breakdown

The bank always makes sure they get their money up front.

Pitfall #2: Underestimating refinance closing costs

Make sure you get a written estimate of closing costs from your bank instead of trying to guesstimate them on your own. Those costs commonly exceed $5000 and coming up short could halt your refinance deal or force you to put the balance on your credit card.

You’ll need to know all the details of your current mortgage, your credit score, and the market value of your home before you apply for a refinance loan.

Pitfall #3: Getting cash out with a refinance

Lenders who offer cash-out refinancing frame it as a bonus for you, as extra money you can use to pay down other bills, cover your closing costs, or take a vacation. But all it really does is put you deeper in debt with your house on the line.

Don’t base your financial strategy on “I’ll just Google it”

If you’re just searching on Google for answers to specific questions, how will you know you didn’t miss anything important?

What makes professional financial advice worth it is the ability of your advisor to keep you on track and proactively identify financial risks and opportunities for you before they arise.

I’ve often found that the greatest risks facing a new client weren’t even on their radar.

Our Mortgage Action Plan delivers guaranteed results and allows you to start living the life you deserve.

For thousands of Australians, making day to day purchases on their credit cards and managing credit card debt is a common theme.

In fact, Australians made over 227 million credit card transactions in July 2020 alone.

Australians have a history of racking up large amounts of personal credit card debt; with credit card debt being a large contributor to Australia having some of the highest personal debt levels in the world.

But we’re also turning debt reduction into an art form in the 2020s.

Since COVID hit in March, Australians have wiped almost $4.2 billion off their credit cards.

There are people who love credit cards, and people who hate them. However, people who sit on the credit card fence do have a few points.

Credit Cards Can Be Debt-Traps!

There are more than a handful of debt strategy pro’s with credit cards, if using them correctly; people can make their payments on time, and keep their balance low.

By doing so, many Aussies are using credit cards to build a good credit score that can be used to qualify for a mortgage or personal loan.

Many credit cards also come with 0% interest on purchases, interest-free periods and balance transfers for an introductory period of at least 6 months. This gives you the convenient ability to pay off your balance over time, without incurring any extra costs. The use of credit cards also gives the ability to earn rewards that can be used for cash, gift cards, miles or other merchandise. You can use the rewards on the go, or save up for bigger redemptions.

There is great power in being aware of how to use credit cards efficiently. For a number of Australians, however, a few bad mistakes have resulted in a downward debt spiral that only contributes to the bottom line of the banks.

The Illusion of Credit

Credit cards open up additional purchasing power and give the owner the illusion that they have more money than they actually do.

This opens up the temptation to spend more than you can afford. Credit cards also bring the potential of debt into play. You can keep the debt from growing by paying off your balance each month… but if you only pay the minimum and keep making purchases, your debt will grow. This will also reduce your future income, each time a portion of your future income goes toward repaying your credit card balance.

While credit cards have some negative aspects, these can be easily minimised as long as you’re smart with the cards you choose, and the ways you use them.

There are a lot more pros and cons to credit cards that we didn’t mention here. If you are looking to get a credit card, make sure you do some research and find out what you are getting into, as well as what you’re getting out of it.

Less Debt More Life™

You work hard for your money – imagine your peace of mind knowing your money is working hard for you. Our Mortgage Action Plan delivers guaranteed results and allows you to start living the life you deserve.


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