How to Upgrade Your Credit Score to Get Personal Loan in Australia

Credit Score

No individual wants to stay with a bad credit history in their life. But the challenging financial circumstances push us toward lousy credit scores. So to get a personal loan in Australia, you need to build your credit score to get better deals.

With a bad credit score, you will always land to payday loan lenders who will take advantage of your situation. However, payday loans usually have very high-interest rates, and there is a possibility that you may default in the long run.

But, you can get better internet rates of personal loans in Australia if you start building your credit score.

Let’s dig into the details.

How to improve your credit score

Several ways can help you to rebuild your bad credit score.

  • Know your current credit score

Before you can proceed, you need to be sure of your credit score. If there are any errors, you can contact the lenders and the Credit Bureaus for correction. That will ensure that you have accurate data about your credit score. Getting quick payday loan become very easy with Pronto Paydays Australia. Personal loans come in a variety of shapes and sizes. A payday loan or an unsecured loan, for example, is still a type of personal loan.

You can get your free copy of annual credit reports only Po once a year. But if you need it before the year ends you will pay for it.

  • Repay debts on time

If you start to repay your debts on time, you will always be on the safe side. In addition, if you have a bad credit history, repaying on time will improve the credit history hence raising your credit score.

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To repay debts on time, you can start by taking small loans that you can comfortably repay in full at the agreed time. Then, you can add automatic payment reminders to ensure that you don’t miss any scheduled payments.

  • Do not close down accounts with debts

If you keep those old accounts with debts, you always have a chance to repay them. And by so doing, you can rebuild your bad credit history.

In contrast, if you choose those old indebted accounts, it will become harder to build your credit score.

  • Apply for credit builder loans

Yes, some lenders will lend you money with your bad credit and allow you to rebuild your credit. They will be posting your report on one of the three credit bureaus. If you meet the agreed repayment dates, you will be building your credit score.

  • Don’t take many loans at once

Due to the growth of online lenders, it has become so easy to get loans from multiple lenders in a short time. However, that should not excite you since it will become hard to repay if you borrow from many lenders.

And you will keep ruining your credit score instead of building it. However, if you take a loan from one lender, you will find it easy to manage it.

  • Get a credit card

Using your credit card wisely on everything you need to buy, there is a possibility of rebuilding your credit score. This is because all your purchases will pass through that credit card, making payments frequently, which will raise your credit score.

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Credit card issuers usually report your credit history to the credit bureaus. So if you pay your purchases through a credit card, it’s easier to rebuild your credit score.

  • Keep your credit card balance low

If you manage to keep your credit card balance low, then you will rebuild your credit score. Try to keep your credit card balance at less than 10% of your limit, and you will see some significant change in your overall credit score.

Low credit balance means that you utilize credit and pay on time hence an improvement of credit scores.


To get personal loans in Australia, you need to follow the above methods to improve your credit score. In Australia, personal loan lenders will offer you better deals if you have a good or excellent credit score. So focus on rebuilding it.


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