Since Comprehensive Credit Reporting was implemented in July of this year, a lot of myths have circulated regarding what is included in a credit report, who checks it and how one’s credit score can be improved. Nest Egg spoke with CreditSmart’s credit reporting expert, Geri Cremin, to debunk a few of the common misconceptions Australians have regarding their credit report and overall credit score.
Myth: The credit score is more important than the overall report.
Our research indicates one in three Australians don’t know the difference between a credit report and a credit score.
The key thing to set straight is your credit score is not the be all and end all. The credit score is a number, but it’s very much based on the content of your credit report.
Your credit report has all of the vital information in it, and your credit score just distills that into a number.
I think it’s very easy to get hung up on your score, but it’s really your report that you need to look at and this is what you need to focus on if you’re looking to improve your score.
As well as this, it is the detailed credit report that a lender will look at when you make an application for credit.
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