6 things that don't affect your credit score

6 things that don’t affect your credit score

Last updated: 22 August 2019

Staying on top of your credit score is very important, especially if you’re planning to apply for credit. However, there are certain things that don’t affect your score, some of which you might not even know about!


# Checking your credit score

Keeping track of your credit score does not impact it in any way. Every time you check your credit score with Credit Savvy, it is recorded as a ‘soft enquiry’ on your credit report, which has absolutely no effect on your score whatsoever. What you do need to be aware of is the ‘hard enquiry’ that gets recorded whenever you make an application for credit.


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# Your rent, utility & phone bills

Under Comprehensive Credit Reporting, your repayment history is stored on your credit file for up to two years. However, only your repayment history from licenced credit providers can be recorded, and this excludes telecommunication and utility companies.

Whilst these types of repayments are not recorded on your credit file, they may be recorded as default if they are $150 or more, and over 60 days overdue – which can seriously hurt your credit score.


# How much you earn

Your salary is not included in your credit file, only your employment history is. However, credit providers could still request this information when you apply for a loan as part of their own credit assessment criteria.


# Your savings, investments & assets

Your credit score reflects how well you manage debt. Other types of accounts, such as bank accounts, investments or assets, aren’t factored into the calculation of your score.


# Carrying a balance to build credit

There’s no difference to your credit file whether you choose to pay the minimum or the whole balance off by the due date. In fact, if you do carry a balance, all you’ll get is a larger bill thanks to the interest accrued.


# Credit utilisation ratio

Unlike in America, the ratio of your credit card debt to your credit card limit does not apply in Australia. Your credit card limit is listed on your credit file, but not your balance, so carrying a credit card debt can’t negatively affect your score if you make your repayments on time.


Remember, your credit score is generated by looking at patterns in your credit history, characteristics of your credit profile, and aspects of your credit applications. 


If the information is not reported to the Credit Reporting Bodies (CRBs), it cannot impact your score.


If you’re ever unsure of how your credit score works, you can learn more about the basics here:


As always, Credit Savvy is here to help you access, track and monitor your credit score as well as help you make credit simple.


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