Find out what your credit score is by contacting a credit bureau and so that you can improve your score if needed.
You may be wondering about the question of what's my credit score Australia. Find out where you can check your credit score by reading the information below.
Applying for a loan or a credit card means that lending companies will look at your credit scores. Your credit score will help determine if you will be given a loan or not. Now if you want to know your credit score then reading the information below will help.
Credit Bureau
Australia's credit rating system will let you contact the credit bureau so you can check your own credit score. You may also get a credit report from them, which will contain information that are all about your finances. You need to check all the information as the information will give you an idea whether the lending company can grant you the needed loan.
Credit Score Information
Your credit score will also include some other information that is relevant to every lending company. This will include the debts that you have, information on monthly repayment history, and as well as credit card information with the credit limit.
What is a credit score in Australia
What is a credit score in Australia, you may ask? Find out more about it by reading the information below.
A credit score in Australia is important when applying for a loan or credit. The reason behind this is because the lending companies and bank use this as a basis whether they should approve your application or reconsider you by asking for more requirements.
Accessing Your Score
There are now a lot of websites that can help you check your credit score for free. All you need to do is to provide your name, email address, home address, contact number and your Social Security Number's last four digits.
Accessing Your FICO
It would also be essential to check your FICO since most lenders are using it to check your score. You can get a free report, so you don't have to spend anything to know your FICO score.
How are credit scores calculated in Australia?
The credit score helps the lenders or financial institutions in assessing your credit history and creditworthiness in Australia. Using your credit score, the lenders in Australia will determine the risk aspect involved in lending you loans such as home loans or mortgage.
Different aspects are taken into consideration to calculate your credit score. Some of the major points include the following:
First, your default history is considered. Default history includes your overdue payments and payment defaults. Second, the number of inquiries made by lenders or the credit providers. Third, the number of credit-related inquiries that you have done in the past 12 months period. Finally, your overall credit acquiring pattern in the past.
The different percentages are allotted to the characteristicredit score mentioned above and possibility of adverse events, which is your credit default, listed for the next 12 months on your Veda Credit file.
Explanation of credit score ranges in Australia
There are different explanation of credit score ranges in Australia. Find out by reading the information below.
Australia has credit score ranges that you should know, for you to be able to get familiar with it. Here is the credit score information that you need to know in Australia.
Below Average
Below average score ranges from 0 to 509; wherein you are known to be included in the 20% of the population who are at the bottom.
Average
Average ranges from 510 to 621 which is considered as a fair score when it comes to credit score.
Very Good
Very good ranges from 726 to 832. Almost 80% of the population has this score and is known as the second highest score to achieve.
Excellent
Excellent ranges from 833 to 1200. People with this score can easily avail of loans and credit cards.
How to improve your credit score in Australia
You need to have an active credit card. Lenders are wary of borrowers that have zero or no credit history. You need to pay your bills and other credit payments on time. It shows on your credit report and eye catching for the lenders that look into your credit reports before giving approval to your loan application.
Avoid additional hard credit inquiries. A hard inquiry is one which involves financial institutions and banks requesting for your credit reports. Because ?hard inquiries' take off a few points, from your overall credit score or your FICO score.