Many Australians don’t quite understand how their credit score works, Finance Guru Scott Haywood explains.

Scott tells 3AW’s Tom Elliott even if you pay all your bills on time, it doesn’t mean you’re going to get a perfect score.

• Overdue debts
• Multiple credit cards applications
• Personal loans
• Home loans
• Any level of default
• Credit request from a secondary lender (non-bank)
• Instore card (shopping cards)

‘ ? All of that contributes along with whether you pay your utility bills and your phone bill on time to what is now your credit score.’

Tom Elliott says, ‘I thought if you just paid all your bills you got a perfect rating, I have paid all my bills and don’t have a perfect rating.’

‘Even if you have paid all of your utility bills and your phone bill on time, that doesn’t mean you’ll be a perfect score,’ Scott Haywood said on 3AW Drive.

Click PLAY below to hear more on 3AW Drive