A low credit score can feel like a major roadblock — especially if you’re ready to buy a home but can’t access finance. The good news? Your credit score isn’t permanent. With the right actions and a little time, you can improve it and move closer to loan approval.
In this article, we break down seven essential ‘do’s and ‘don’t’s, to help you build creditworthiness and position yourself for success with lenders.
✅ Do’s: Steps that Help Your Score
1. Pay your existing bills and loans on time
Why it helps: On-time payments are one of the most powerful indicators of creditworthiness, as they demonstrate that you are reliable and can be trusted to make repayments on schedule. As little as one missed payment can negatively impact your score.
What to do today: Set up reminders or automate repayments, and ensure bills are in your name so your positive behaviour gets recorded.
2. Lower your credit card limits
Why it helps: Lenders don’t just look at what you owe, they look at what you could owe. Even unused credit limits are considered potential debt. Reducing your limits to a level you comfortably manage can boost your score and improve your borrowing profile.
What to do today: Determine the amount you actually need and can comfortably manage. Contact your bank to reduce your card limits to match this amount.
3. Keep a well-managed credit card open
Why it helps: Having a credit card in good standing shows lenders you can use credit responsibly. A low-limit card with regular on-time payments shows that you can handle credit, which works in your favour when applying for a home loan.
What to do today: If you already have a card and use it sensibly, keep it open. Pay it off in full each month and keep the limit low.
4. Keep your personal details up to date
Why it helps: Lenders want to see consistency and accuracy in your records. Outdated information can lower your credit score or delay applications.
What to do today: Ensure your credit file is accurate and up to date. Visit the Office of the Australian Information Commissioner website for instructions on how to access your credit report. If you’ve moved house, changed jobs, or spotted something incorrect, contact the relevant credit reporting agency to make updates.
❌ Don’ts: Mistakes that Hurt Your Score
5. Don’t apply for credit too often
Why it hurts: Every application you make - whether it’s accepted or not - is listed on your credit file. Multiple applications in a short period can signal financial stress and reduce your score.
What to do today: Only apply for credit when you really need it. If you’re comparing options, speak with lenders in order to make an informed choice before submitting formal applications.
6. Avoid payday lenders and ‘buy now, pay later’ services
Why it hurts: Quick-credit options may seem convenient at the time of purchase, however they create multiple short-term debts on your file, and can make it look like you’re spending beyond your means
What to do today: Pay upfront for purchases when possible. If you need to lean on credit, begin by using an existing credit card or traditional financing options with better terms.
7. Don’t check your score too frequently
Why it hurts: Each time you check your credit score, it gets marked on your file. While it’s good to keep an eye on your credit, checking it too often can signal financial anxiety and may deter some lenders.
What to do today: Limit how often you check your score. Focus instead on consistent positive habits to move your score in the right direction - do the right things, avoid the wrong things, check in occasionally, and trust that the rest will take care of itself.
A Better Credit Score Is Within Reach
Fixing your credit score takes time, but it’s absolutely possible. By focusing on the right behaviours and avoiding common pitfalls, you can build confidence with lenders and move closer to owning a home.
Not sure if your score is holding you back? Take our free eligibility quiz to see what’s possible based on your situation.
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