Young people need to know 5 things about credit

CEO of MyCRA Credit Rating Repairs, Graham Doessel, says many young people amble through their early years with credit, making mistake after mistake that can cost them dearly down the track.

Below, he lists 5 important credit lessons for school leavers:

1. Your credit file follows you…everywhere in Australia.

2. Overdue accounts are considered bad credit history.

3. Bad credit history matters. A single default for as little as $100 can stop you from getting mainstream credit in the current market for the term of the listing, which is five years.

4. With all financial dealings, and especially credit – cover yourself at all times. If you need to cancel an account, don't assume it’s cancelled until you receive written confirmation. If you are moving, provide a forwarding address.

5. You are responsible for the accuracy of your credit file. Creditors can and do make mistakes with credit files all the time, but the responsibility to ensure your credit file reads accurately rests with you.

Source: Broker News