How to give your credit a boost

How to give your credit a boost

There’s one simple thing you can do today if you want to boost your credit rating to buy a house — and many people are already cutting back.

Latest national figures show the Aussie love affair with credit cards could be dying, which is not a bad thing for househunters.

Card numbers have fallen to their lowest level of activity since March 2015, according to latest Reserve Bank of Australia data, with 15.97 million credit card accounts in November last year.

Credit limits were also down to $151.94 billion (from $152.09 billion in October), according to comparison firm research director Sally Tindall.

Ms Tindall suggested anyone looking to secure a mortgage this year cut back on credit cards to get a foot in the door.

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“People applying for home loan in 2019 might choose to cancel their credit card or reduce their limit in order to get their home loan application over the line,” she said.

She expected the credit situation to become even tighter this year given new card rules that came into force on January 1.

Ms Tindall said the new rules now made it harder for people to get access to credit and credit cards.

“The government’s new regulations will force new credit card applicants to accept a credit limit they can prove can be repaid within three years,” she said. “It will also see people rethink the merits of having multiple cards.”


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