There are many myths about credit reports and credit ratings so here are some facts that you may not know:

• Many people believe that they can improve their credit rating by borrowing small amounts, obtaining small or low interest credit cards or even paying back debt. This is very rarely the case, as Australia is one of the few countries in the world that follows a negative credit reporting system.
• The Australian system only records negative events, so there is no “good credit” to balance out the bad.
• When you pay a debt, the negative credit listing doesn't disappear.
• A paid listing is not much better then an unpaid one. This is not always the case, but in most circumstances, you will not get much further by paying the old debt.
• Most credit providers use computers to determine whether or not you get approved, and/or your interest rate, with limited human input.
• Credit providers can reject you if you have even the smallest blemish, even a missed phone bill can stop you getting a loan or increase your monthly repayment.

Most information on your credit report has the ability to harm your chances of getting approved. This same information can also determine the interest rates you pay and the fees that your bank or financial institution charges you. By repairing your credit you can experience savings of thousands of dollars every year.

Click here to find out more about credit repair.