Organise your finances before moving - Avoid bad credit

Moving house is a major life event. Unfortunately it can often cause people to “drop the ball” when it comes to their finances, which can negatively affect their credit report/score. Rather than try to juggle your move alongside keeping on top of your finances, the key is to get your bills, loans and other expenses organised before you move to avoid getting a bad credit history. Here are our top tips to do this.  

1. Review Your Bank Statements, List Everyone You Pay Money To and Contact Them

By checking your bank account/credit card statements for 12 months will help you list down anyone you pay money to. Armed with this list, contact each one and advise them of your new address, as well as requesting the option to provide your e-mail address and other contact details. Ensuring your creditors can contact you will prevent them having to list a default or late payment if they send a bill to your old address.  

2. Redirect Your Mail

It is impossible to remember everyone you have provided your home address to, so make sure you don’t miss out on any bills, invitations or competition winner announcements, by redirecting your mail with Australia Post. Protecting your credit rating is essential but let’s not forget your social life too!  

3. Set Up Direct Debit Payments

Most providers such as banks, phone and internet suppliers, utilities, insurers, subscription services, schools etc. can offer direct debit payment services. Direct debits allow your providers to automatically debit your account or credit card when the payment is due, so you don’t have to remember. With the new credit reporting system in Australia, it’s very important you pay bills and loans on-time, as it will prevent you from getting bad credit due to late payments being recorded.  

4. Be Prepared for Moving Costs

Moving can be very expensive. It’s important to be prepared and have a “buffer” to protect you in the event moving costs are more than expected. Either have savings available, or have a plan as to where you could access some emergency funds. At Fair Go Finance we can provide loans from $500 to $10,000 which can be used for moving expenses and can even be pre-approved. By having a pre-approval means it can already be formally assessed so the funds are ready to be transferred to an account that day, if needed. 

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Daniel, February 2016