Suburb you live in could be lowering your credit rating

APPLYING for a loan in Rockhampton?

Your address could be lowering your credit rating.

Graham Doessel is the non-legal director of MyCRA Lawyers and he said the suburb you lived in was one of the factors that decided your credit rating.

"It's not common knowledge, but when it comes to your address some suburbs are listed as high for commercial credit risk and if you happen to live in that suburb your score may be lower than what it would be if you lived somewhere else," he said.

Unemployment figures were also seen as carrying further credit risk.

Data for the December 2013 quarter showed Rockhampton's rate was higher at 8.2% than the state and national averages of 5.94% and 5.88%, Mr Doessel said.

He said while he was uncertain how credit reporting agencies rated Rockhampton specifically, in comparison to other areas its high unemployment and general economic difficulties could unjustly lower credit ratings.

A general history of defaults in one area combined with high unemployment could see the area listed as a "credit danger zone".

"I spent a long time working in Central Queensland in my younger years, and economies there can be fickle, being so heavily reliant on weather, mining and tourism," Mr Doessel said.

"We know that Rocky has recently done it tough as an area, with hard economic times as well as the flooding.

"The fact you live in Rocky may unfairly reduce your overall credit score.

"Those wanting to start businesses, or enter into or continue in the property market can be at a disadvantage, and this is unfortunate considering these are the very people whose injection of cash can help the area prosper," he said.

Credit check

Mr Doessel said it was important to keep an eye on your credit rating, checking it at least once a year

Check for free through www.freecredit

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