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Experts answer some of the most common credit questions

From how to check your credit score to what happens if you don’t pay your credit card bill in time, these financial experts have the answers.

By Sarah Marinos

13 January 2025

Credit can feel like the answer to making your money go further. And it can with a caveat: that is, if you have a solid game plan to manage payments and avoid any surprises. We asked financial experts James Millard, founder of Sufficient Funds and author of Insufficient Funds, and Ben Nash, author of Virgin Millionaire, to answer some of the most common credit questions.

How can I find out my credit score?

You can get your score in a few minutes (noting that checking doesn’t actually impact your score). “If you’ve had a problem with credit—you haven’t paid your phone bill on time, for example—that can negatively impact your credit score,” says Millard. Lenders check it when deciding to approve an application for a credit card or loan. CommBank has partnered with Credit Savvy and Experian so you can check your credit score for free via the CommBank app.

Fact

Your credit score is a number that indicates your credit worthiness or ability to repay your bills on time. Generally, the number is between 0 and 1000.

What happens if I don’t pay off my credit card bill in time?

Once any interest-free period expires, your credit card provider calculates interest on the amount you owe. It accrues daily and you’re charged a monthly payment. “You’re expected to repay a minimum monthly amount,” says Willard. “If you don’t, that can affect your credit score.”

Call your bank before that happens; for CommBank customers in need of repayment support, a virtual assistant in the app can connect you with a specialist to discuss options. You can also manage CommBank credit card repayments with SurePay, which helps you set up a regular instalment plan, or use the AutoPay feature to make repayments automatically each month.

“Avoiding late repayments is key to improving your credit score.” - James Millard

How do I avoid getting caught up in debts with high interest when using credit?

“Credit cards generally offer a number of interest free days before they accrue interest. Know those timelines and try to pay off what you owe within that period,” says Nash. There are generally two types of credit card: one that offers points or rewards but usually has a higher interest rate and a no-frills, low-rate option. If you know you’ll have debt, opt for the lower rate—and avoid cash advances, too.

CommBank’s Low Rate credit card has up to 55 days interest free on purchases and charges a monthly fee of $6, making it possible to handle unexpected expenses with more manageable repayment terms.

Can I improve my credit score?

Absolutely but it takes time—a default payment disappears after seven years. “The more recent the default, the more of a problem it is for a new lender,” says Millard. “Avoiding late repayments is key to improving your credit score. If you can’t meet a repayment, call the provider ahead of time to let them know.” And don’t adopt a scattergun approach when it comes to credit; applying for multiple credit cards can lower your credit score.

How much should I care about a new partner’s credit?

It’s a good idea to avoid mingling your finances with a new partner. First, get to know each other and ensure you have similar financial goals and attitudes, says Nash. “Tread cautiously if your partner is in a financial bind. It may be due to bad luck or it could be bad habits and poor money management. Providing them with financial help might give them breathing space but helping your partner build better money habits is safer long term.”

Should I use credit to help pay bills and other expenses?

Relying on credit to cover day-to-day living isn’t ideal but it can be a backup if you run into difficulties. “Work towards building a rainy-day fund of up to $2000 as a buffer to deal with emergencies,” says Willard. If you’re going to use credit, there are ways to try to manage it sensibly.

CommBank StepPay lets customers split purchases over $100 and up to $2000 into four equal repayments. To help smooth these expenses, there are no monthly fees and no interest charges but there are late payment fees.

How can credit card points and rewards help me right now?

“If you’re spending on a big item, like a washing machine or a holiday, save until you have enough money to cover the cost,” says Willard. “Then buy that item using your credit card so you get points but pay off the credit card immediately.”

CommBank’s Ultimate Awards credit card earns points that can be redeemed at Myer; used to pay for your next holiday with Travel Booking via the CommBank app; and for a range of items on the CommBank Awards site including gift cards, electronics and cashbacks.

How can I safely use my credit card online or protect myself from fraud?

Banks have a number of ways to protect your credit card. CommBank’s Lock, Block, Limit is a tool that allows you to stop your credit card from being used for international and contactless card payments, blocks it from being used for cash advances and sets a limit per transaction. Purchases made with eligible CommBank credit cards also come with purchase security insurance to help protect against loss, theft and damage.

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An earlier version of this article was published in Brighter magazine.

This article provides general information of an educational nature only. It does not have regard to the financial situation or needs of any reader and must not be relied upon as personal financial product advice. The views expressed by contributors are their own and don’t necessarily reflect the views of CBA. As the information has been provided without considering your objectives, financial situation or needs, you should, before acting on this information, consider the relevant Product Disclosure Statement and Terms and Conditions, and whether the product is appropriate to your circumstances. You should also consider whether seeking independent professional legal, tax and financial advice is necessary. Every effort has been taken to ensure the information was correct as at the time of printing but it may be subject to change. No part of the editorial contents may be reproduced or copied in any form without the prior permission and acknowledgement of CBA.