Phil Usher is a proud Wiradjuri man from Central NSW. Phil is the CEO of the First Nations Foundation, which publishes this website. 

When you borrow money, you’re assigned something called a ‘credit rating’ or ‘credit score’. It tells other lenders about you history of paying back credit or loans.

If you miss a payment, you’ll often receive a warning from the bank or financial institution. If you haven’t paid back some of the money you owe in that time – or spoken to the bank about it – it can affect your credit score.

If you have a high or good credit rating, it may help to get a loan or a lower interest rate in the future.

However, if your credit rating is not so good, lenders in the future may perceive you as a ‘riskier’ customer and charge you a bit more for your loan.