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Published on: 18 Sep 2023

Unlocking financial confidence begins with a credit health check as a first step to take control of your financial well-being. 

What is a credit health check?
A credit health check is the process of assessing your creditworthiness by delving into your credit report and credit score. 
Your credit report and credit score provide valuable insights into your credit health in the eyes of lenders, and it plays a pivotal role in determining whether you'll be approved for credit (such as loans or credit cards) and what terms you'll be offered.

Here's how to kickstart the process:

Step 1: Get your credit report(s):  Start by obtaining a copy of your credit report from each of the credit reporting bodies - Equifax, Experian, and illion.

Step 2: Know what to look for on your credit report: Your credit report provides a summary of the credit that you have had and how you have treated it, including how much credit you have, and whether you are keeping up with repayments. Your credit report also includes a credit rating and/or credit score, which is an indication of the ‘band’ that your credit score sits in (e.g. ‘below average’, ‘average’, ‘good’ etc).

Step 3: Review your credit report(s): Thoroughly review each of your credit reports for any errors, discrepancies, or fraudulent activities. Look for inaccuracies in personal information, or unrecognised accounts. If you find any mistakes, dispute them with the credit reporting bodies to ensure that your credit report is an accurate reflection of your credit history.

If you've discovered that your credit report isn't in good shape, it's time to take action. Your journey towards financial confidence begins with understanding, and we're here to guide you every step of the way.

Here are some crucial steps to consider:

  • Address outstanding debts and payment history: To demonstrate you can manage your debts, work on a repayment plan for any outstanding debts. Make regular payments and ensure all future payments are made on time. Late payments can significantly impact your credit health, so staying on track is essential. 
  • Start building a positive payment history: Building a positive credit repayment history is one of the most critical factors in maintaining good credit health. Late payments, missed payments, and repeated missed payments can lead to defaults which can have a significant negative impact on your credit report. To avoid this, it is important to make your credit repayments on time and in full each month. 

By taking proactive steps to improve your credit health, you open doors to better financial opportunities and help to secure a stable financial future. Regularly check your credit report (available for free, every three months), address outstanding debts, and maintain a responsible approach to credit. These actions significantly contribute to taking control of your overall credit health.

We encourage you to use the tips mentioned above to undertake your own credit health check and achieve a positive outcome aligned with your financial goals.

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Digital Agency: SGY