Fraud protection.
Now it’s personal.
ANZ Falcon® technology monitors millions of transactions every day to help keep you safe from fraud.
Falcon® is a registered trademark of Fair Isaac Corporation.
Fraud protection.
Now it’s personal.
ANZ Falcon® technology monitors millions of transactions every day to help keep you safe from fraud.
Falcon® is a registered trademark of Fair Isaac Corporation.
Log in
Explore more
Fraud protection.
Now it’s personal.
ANZ Falcon® technology monitors millions of transactions every day to help keep you safe from fraud.
Falcon® is a registered trademark of Fair Isaac Corporation.
A credit card can affect your credit score both positively and negatively over time, so it’s important to learn how to use them responsibly. Read on to learn more.
A credit score – also known as a credit rating – is calculated based on your credit history. This includes the amount of money you’ve borrowed, the number of credit applications you’ve made and whether you pay on time.
Credit scores are compiled by independent credit reporting agencies and form part of your credit report. If you’ve ever borrowed money (think credit cards, home loans or personal loans) you already have a credit score attached to your credit report.
Banks and other financial providers use your credit score to determine whether to give you credit or lend you money. A higher score means the lender will consider you less risky, therefore, the more likely you’ll be offered a loan.
At ANZ for instance, we work with three credit reporting agencies in Experian, Equifax and Illion to assess customer applications for loans.
As odd as it may sound, your credit card may impact your credit score positively over time, provided you use it responsibly. That’s because one of the key things credit reporting agencies look for is your ability to pay off your debts on time over a prolonged period.
According to most credit reporting agencies, it can take several months to establish a credit score, and several years after that to get it into the good-to-excellent range.
But be warned, a credit card can also harm your credit score if not used responsibly.
For example, if you make a habit of not paying your credit card bills on time, it could, over time, negatively affect your credit score. And the worse your credit score gets, the more it impacts your chances of being offered a loan further down the track.
But it’s not all doom and gloom! Below we explain how the responsible use of a credit card can improve your creditworthiness.
Paying your credit card balance on or before the Due Date suggests to the credit reporting agencies that you can manage your money. Consider setting up alerts or direct debits so that you never miss a repayment.
Always aim to pay the Closing Balance in full, or at least make more than the Minimum Monthly Payment when you receive your statement, as too much card debt can impact your credit score over time.
Sending off multiple credit card applications over a short period of time can be a red flag to lenders and ultimately harm your credit score. It’s best to do your research and only apply for the card that suits you most.
In theory, there is nothing wrong with having several credit cards. But here’s the thing, the more cards you have, the more it lowers your debt to credit ratio – also known as your credit utilisation rate. Your credit utilisation rate is the amount of credit you’re actively using compared to the total amount of credit banks and other financial providers are willing to lend you, such as when you apply for a home loan.
Also, the more credit cards you have, the more repayments and due dates there are for you to manage. Falling behind on your repayments can impact your credit score. That’s why it’s recommended that you only have as many credit cards as you can manage.
Depending on which credit reporting agency you go to, you may get a different score. In other words, what’s considered a “good credit score” will vary from place to place.
Generally, your credit score will sit somewhere between 0 and 1,000 or 0 and 1,200, depending on which agency is calculating your score. No matter where you go, a higher number always means a better credit score.
For more information on good credit scores and ratings visit the Credit Smart website.
The credit reporting agencies will provide you with one free credit report per year. Additional reports can be requested at a cost.
To obtain your credit report, you’ll need to contact one, or a combination of the credit reporting bodies below. Alternatively, visit Credit Smart for more information.
Choosing a credit card can be tricky, which is why we’ve built a handy tool to get you started. Simply answer three questions to see which card could be a good fit for you.
Choosing a credit card should never be done on a whim. Make sure you compare fees and charges, interest rates and benefits so that your decision is an informed one.
Let’s face it, paying credit card interest bites big time. Especially when it can be avoided. Below we’ll look at how to minimise your credit card interest – and how to avoid paying it altogether.
Right-sizing your credit limit to your budget could help you repay your credit card balance in full, every month. This could help you avoid paying interest on your credit card.