Credit card customers 'should ensure they pay bills on time'

Aussies should ensure they pay off their credit card bills on time, particularly if they plan to apply for home loans or similar products in the future, an expert has stated.

Speaking to the Mosman Daily, Michael Daniels, from mortgage broking group Smartline, asserted that all debts and bills should be paid promptly.

"This is becoming increasingly important as more and more of your repayment history is being recorded on your personal credit file, which is thoroughly scrutinised by lenders," he said.

The expert also recommended that prospective home loans customers who have credit cards consider reducing their limits.

He explained that even with no money owed, a card with a limit of $8,000 will be viewed by future lenders as $8,000 worth of debt and liability.

A recent study by Lifewise revealed that Generation Y Aussies are more careful with their credit cards than those who are slightly older.

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