There’s a lot of information online about credit scores and it can be hard to know what’s true and what’s not, so in this article we are going to debunk 10 common credit score myths.
1) Not having any debt means you have a good credit score.
Having no debt might seem like the best way to keep your credit score high but, like a resume with no experience, it can also mean that the lender has no idea how responsible you are with credit. This is not to say you should get a credit card, there are other ways to build credit such as paying off a mobile phone plan or your utility bill on time.
2) Every Aussie has one credit score.
Every Australian has multiple credit scores, usually 3, as there are 3 main credit reporting bureaus who each have their own algorithms and credit scoring systems. Each lender may have a preference to one bureau so it’s important to know your score across all of them.