SmartFinance Compass

How to Consolidate Debt Without Ruining Your Credit Score Are you juggling multiple credit cards, personal loans, or buy-now-pay-later bills? You're not alone. Debt consolidation is one of the most effective ways Australians can simplify their finances and reduce interest costs—but only if done the right way. What Is Debt Consolidation? Debt consolidation involves combining multiple debts into a single new loan—usually with a lower interest rate. Instead of managing different due dates and lenders, you make just one repayment each month. How Can It Affect Your Credit Score? Your credit score may experience a short-term dip due to a credit enquiry, but over time it can actually improve if: You make consistent on-time payments You don’t accumulate new debt You close old accounts responsibly Smart Ways to Consolidate Debt Balance Transfer Credit Cards: Some banks offer 0% interest on balance transfers for up to 24 months. Just watch for fees and revert rate...

5 Common Credit Myths That Could Hurt Your Finances Credit can be confusing—and unfortunately, many people believe myths that actually damage their credit scores. In this article, we’ll debunk five of the most common credit myths and set the record straight. 1. Checking your credit score hurts your credit False. When you check your own credit (called a “soft inquiry”), it has no impact on your score. Only “hard inquiries” from lenders affect it—and even then, only slightly. 2. Carrying a balance helps your score Wrong. You don’t need to carry a balance to build credit. In fact, carrying debt means you’re paying interest unnecessarily. Paying in full is healthier for your score and your wallet. 3. Closing a credit card improves your credit Not always. Closing a card can lower your available credit, raising your utilization rate—and possibly hurting your score. It may also reduce the age of your credit history. 4. You only have one credit score Nope....