The Ultimate Guide to Keeping a Healthy Credit Score


In Australia, getting a car loan is not difficult. That being said, it is important to understand how to keep a healthy credit score to get the suitable car loan possible. Indeed, your credit score will determine how much you can borrow, for how long, and, most importantly, at what interest rate.

Furthermore, keeping a healthy credit score and a clean credit report often means the start of a healthy financial situation and a more stable and productive time on Earth.

Read on, apply these tips, and start living the life you want on the ride you’ve always dreamt of today.

Assess the Current Situation

The starting point to a healthy credit score is always to know where you are at today. In this sense, checking your credit score at least yearly is paramount. Having an optimal credit score will ensure the suitable interest rates from the suitable lenders.

So, as a first step, perform thorough research asking for your score from any of these reporting institutions:

They will send it to you for free. Moreover, you can check it every three months, which will not only allow you to know where you’re standing but also to understand whether or not your current financial habits affect it negatively.

How is Your Credit Score Calculated?

Having a thorough understanding of the calculation process will allow you to fine-tune your financial movements to get a better score. To begin with, the information that the score is based on is that of your credit report, including:

  • The total amount of borrowed money (including all lenders).
  • How accurate and timely your payments are made.
  • The total number of credit applications made (successful or not).

The outcome of this calculation, depending on the reporting agency, will be a unique number. Usually, it oscillates between 0 and 1,000. In the case of a very healthy financial situation, it can go up to 1,200. A higher score will allow you better fares, which translates into more chances of getting a bigger loan while saving some money.

Once you are aware of the score, you can go to Oxcel Finance and follow their easy five-step registration to get the loan you need for your gleaming new ride.

Don’t Overlook the Time Factor

Your credit score will be drastically affected by the time factor. In other words, paying your dues on time makes a huge difference for this indicator. In that regard, everything in your financial realm counts: credit cards, utility bills, and loans.

Every non-payment (default) might be informed to a credit reporting agency (they will inform you first) and end up impacting your credit score. Some scenarios a service provider can report a default are:

  • You owe more than $150 and the date for the payment is 60 days overdue.
  • Your service provider can’t reach you with the contact information you’ve provided (this case is called a “clearout”).
  • You were intimated by your service provider, via phone or in writing, to cancel your debt.

These scenarios can not only affect your current credit score, they will remain in your credit report for five years in the case of a regular default and seven years in the case of a clearout. Once the debt is canceled, the information will still appear in the credit report along with your payment data.

In short, you can create a tight payment schedule to follow or get automatic debit on as many utility bills as possible to improve your financial health and raise your credit score. Forgetting to pay your bills can have a catastrophic outcome; do your suitable to prevent it.

Be a Smart Borrower

Instead of going through a credit repair operation that will cost you time and money, you can act on prevention by becoming a smart borrower.

Here are some guidelines you can follow to avoid common pitfalls.

Center Your Efforts in One Provider

Every credit provider you apply for makes a record of your application. If, for example, you are unaware of your credit score and apply to several companies just to see which will grant you the funds, this might be a flag to lenders. How so? Well, it might translate into a desperate need for money or credit stress that impacts your score and your report negatively.

Also, if you are about to apply for a loan, read the requirements and don’t apply to those lenders who are unlikely to accept you. A good example might be checking that you meet the minimum income requirements.

The Type of Credit Also Makes a Difference

Taking out a car loan, personal loan, or home loan is different for credit providers. Indeed, they might judge you are a more stable, creditworthy candidate if you’ve taken a house loan than if you repeatedly take personal loans.

The same goes for credit cards; applying for more than you can handle can raise the alarm on the credit provider. It might mean that your spending habits are out of control, and hence, you are less trustworthy.

Although desperate times demand desperate measures, try to refrain from doing it unless you imperiously have to.

Ask Only What You Need

Loans pile up to create a debt that might be harder to handle or cancel. For example, if you max out your credit card limit, or take out several personal loans, you might run out of financial room for your car loan. In other words, you won’t be able to access a credit line when you need it the most.

Try to keep your loans to the minimum possible and focus on the big needs so you can achieve those bigger goals that can change your life.


A car loan might be a ticket to a better life. Indeed, whether it is because the family is growing and you need to make room for the newcomers or because you want to fulfill a lifelong dream, or even just because it will take you to that great new job, a new car will mean a lot in your life.

To make financial space for it to happen, you need to have a high credit score, and taking preventing action is always the suitable way to stay healthy in every aspect of life. Thus, apply this advice and get the suitable rates; a world of opportunities is waiting for you.

Check out the suitable deals in the market in Oxcel Finance and stop dreaming your life to start living the dream.

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