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 to make 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:
- 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?
A credit file is a report that holds all of your financial histories and is always changing as a result, credit providers having to update the file continually with your credit behaviour.
How To Order A Free Veda Credit File?
Veda Advantage is the main credit reporting body here in Australia and so we concentrate on them. Dun & Bradstreet, however, still does have a presence.