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Credit Score Basics

What is a credit score?

A Credit Score is the easiest way for you or a Credit Provider to see the state of your Credit File without actually having to look at one and acts almost like a kind of shortcut for Credit Providers to help them determine your creditworthiness.

Companies like banks, payday lenders and credit unions will often use a credit score to help make a decision whether or not they’re willing to lend you their money and, at times, can even influence the interest rate they give you.

How is your credit score calculated?

Credit Reporting Bodies like Equifax, Experian and Dun & Bradstreet collect you’re some of your personal and financial data, marking it down on your credit report.

They then use this information, comparing it against other credit files, to dictate what your credit score is. Things like:

  • Age
  • Defaults (any unpaid debts that have been marked on your file)
  • Employment history
  • Enquiries (Made whenever a Credit Provider checks your file when you apply for a loan/credit card)
  • Where you’re currently living and where you lived in the past

What Is A Credit File?

It is a report that contains the information about the borrowing and repayment activities of the individual. Financial institutes check this file to get credit score details of the borrowers when they apply for a loan to ensure whether they are at a good or bad credit risk.

How To Order A Free Equifax Credit File?

Equifax (previously Veda) is the main credit reporting body we’re using to check credit score in Australia. Dun & Bradstreet however, still does have a presence.

Here's What Credit Reboot Can Do For You

MUST KNOW’s

When Shopping For Credit

1.PAYMENT HISTORY

Pay Your bills and loans on time, credit providers will not hold back in damaging your credit score when your payments are late

2.SHOPPING AROUND FOR CREDIT

Instead of signing up for different quotations, be anonymous (it’s your right), start by saying that your are just making an enquiry. Read their flyers instead of signing up in their sites for those damn “Free Quotations”

3.ORDERING YOUR CREDIT SCORE FROM THIRD-PARTY AGENTS

These agencies are really a front for financial products and the terms and conditions you agree to when ordering your credit score online, allow your credit file to be sent for pre-screen marketing.

4.REQUEST COMPANIES TO STOP SHARING YOUR CREDIT FILE

Understandably, damage has been done, use this letter CLICK HERE to stop companies from sharing your credit file for marketing purposes