Why it is Ever-So-Important to have Good Financial Conduct in 2023

Let's face it: money makes the world go round. And as we approach the end of 2022, it's time to start thinking about what our economy might look like in 2023.?

With the Reserve Bank of Australia’s (RBA) latest rate rise by 25 basis points, and with more rate rises forecasted, uncertainty has also heightened. Inevitably, it has become crucial to be in a strong financial position to weather the storm and gain access to the funds you need without a hitch.?

More and more Australians are looking for ways to ease the burden of rising cost of living and some are resorting to debt consolidation, refinancing, loan reviews and even personal loans for emergency funding.?

With that being said, people that have the best financial conduct are reaping the benefits of instant approvals and the best interest rates available. Therefore, to have a handle on our personal finances means being responsible with credit and avoiding taking on more debt than we can handle. Good financial conduct isn't about being able to afford the latest iPhone or designer handbag - it's about ensuring a secure future for ourselves and our loved ones.

It is clear that building good financial habits will open many doors to financial freedom and a healthier credit score. Even if you’ve had past issues, it’s never too late to change this around!

Not sure where to start? Here are a few simple and effective steps that you can take to improve your credit rating and impress your fellow lenders.??

1. Pay your credit card(s) and existing loans on time?

Missed or late payments indicate to lenders that you may not be a responsible borrower. So make sure to keep track of due dates and set reminders if necessary - paying off your debts on time will save you money in the long run and boost your creditworthiness.

2. Pay your bills on time

It is super important to demonstrate stability to lenders. Also, late fees and interest charges can add up quickly and put a major strain on your finances! So whether it's setting up automatic payments or simply blocking out time each month to review and pay your bills, being timely can make a whole lot of a difference.

3. Reduce your credit card limits?

Are you constantly staring at your maxed-out credit card statement, wondering how in the world you managed to spend so much? It might be time to consider reducing your credit card limit. By lowering the amount of available credit you have, you'll be less tempted to splurge on things you don't need and in turn, help decrease your debt-to-income ratio.?

4. Review and fix any credit report mistakes

Don’t be in the dark about your finances. Review your credit report regularly to avoid any mistakes that may impact your ability to retain a loan. Dispute any errors with your agency and provide documentation to support your claim. Your credit history is worth fighting for!

There are many actions that you can take to improve your financial position and be prepared for any circumstances that may come your way in 2023. So, let's all strive to be a little more financially savvy in these uncertain times. We'll thank ourselves in the long run.

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