HOW TO SCORE A BETTER DEAL
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.