You’ve probably heard the saying knowledge is power. Your credit score is likely to change across your lifetime, so it’s important to know what your credit score is and why they change. So, to answer the question, a credit score is a numerical representation of your creditworthiness.
Each of these have a separate credit score for you. In Australia, there are 3 different credit reporting agencies – Equifax, Experian and CheckYourCredit (illion). One thing that’s important to highlight is that you actually have more than one credit score.
So, the better your credit score, the more likely you will be approved for credit. A bad credit score shows that providing you with credit will be more of a risk to the provider. Your credit rating is based on a five-point scale: excellent, very good, good, average and below average.Ī good credit score indicates that you are effective at managing your debt and likely won’t default on your credit. In other words, it reveals how risky of a borrower you are. The role of a credit score is to indicate to credit providers, such as banks, finance companies and utility providers, your creditworthiness. Let’s start off with the most frequently asked question – what is a credit score? Your credit score, which can also be referred to as a credit rating, is a number ranging from 0 – 1,200. What is a credit score? What’s the difference between your credit score and credit report? How can you improve your credit rating? All of this and more will be tackled in this article. It’s time to pull back the curtain and shed some light on credit scores. Because of this, there’s a lot of mystery and uncertainty surrounding credit scores. However, 73% of Australians don’t know their credit scores or why they are important.
Your credit score is an important number that can affect multiple aspects of your life. There is a lot of uncertainty surrounding credit scores and your credit report, so we’re shining the light on the situation and answering some of your most frequently asked questions.
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