Townsville Bulletin - - NEWS -

HAVE you ever won­dered why, when it comes to credit cards and per­sonal loan in­ter­est rates, we all pay ex­actly the same high in­ter­est rate, no mat­ter whether you’re a good payer or a bad one?

With car in­sur­ance, good driv­ers ben­e­fit from lower premi­ums. With home and con­tents in­sur­ance, if you have dead­locks, an alarm and live in a safe sub­urb, you ben­e­fit from lower premi­ums. With life in­sur­ance, if you don’t smoke, you get lower premi­ums. Why doesn’t this hap­pen in bank­ing?

The se­cret is know­ing your per­sonal credit score.

Peer- to- peer len­der So­ci­ety One ( in which Seven West Media and News Corp Aus­tralia are share­hold­ers) is giv­ing away one mil­lion credit scores, free.

Sim­ply head to get credit score. com. au to find out your score. All you need to do is fill in your name, ad­dress, birth­date and driver’s li­cence.

The big banks charge ev­ery­one 14- 20 per cent in­ter­est on per­sonal loans.

If you have an ex­cel­lent credit rat­ing, a per­sonal loan could have an in­ter­est rate of 8.95 per cent.

Get Credit Score will pro­vide your rat­ing and tell you the in­ter­est rate So­ci­ety One would pro­vide.

We’re not say­ing you should switch your loan.

But armed with your credit rat­ing and an in­ter­est rate some­one else is pre­pared to of­fer, you can go to your cur­rent fi­nan­cial in­sti­tu­tion and say “match it”. It gives you op­tions to get a bet­ter deal.

Newspapers in English

Newspapers from Australia

© PressReader. All rights reserved.