Bad credit scores affect area’s youth

David SalvaireSound Telegraph
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Kwinana’s Generation-Y men have some of the lowest credit scores in the State, dramatically affecting their future financial options, new figures have revealed.

Suburb data from the recent Veda Australian Credit Scorecard shows Kwinana men aged 18-34 have dragged the area’s average credit score down to the second-lowest in the State.

Kwinana had an average score of 730, still considered “good” but well below the State average of 765, and only ahead of the Goldfields on 728.

Kwinana Generation-Y men scored 671, with their female counterparts faring slightly better on 703.

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The scores range from 0-1200, with a higher rating offering more options for borrowing, according to creditscores.com.au chief executive Luke Keller.

“Your score can help lenders determine whether you can borrow, how much you can borrow, and at what rates,” he said.

“A strong credit score is a powerful tool when negotiating an interest rate for a new loan, or to re-negotiate a loan you already have with a lender, which can save you money.

”Gen-Y residents in Kwinana ... could learn a thing or two from their older counterparts, who have the strongest scores in the area.”

In WA, age was a major factor in creditworthiness, with older residents outperforming young across the board. That was evident in Rockingham, which was closer to the State average on 751, with residents aged over 65 carrying the area with an “excellent” score of 850.

Rockingham’s Generation-Y population scored 701 with Generation-X on 749 and baby boomers on 804.

Mr Keller said paying bills on time, applying for realistic credit, and keeping track of credit commitments could improve a credit score over time.

“Many Australians are confused as to what affects their credit score, yet it is an important part of their financial health,” he said.

“For example, paying electricity or gas bills 60 days late could have an impact.”

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