What is a Credit Score?
A credit score, also known as a credit report, is a number that represents your creditworthiness out of a possible 1200. Creditworthiness is determined by your credit report. A credit report shows financial institutions and accredited lenders (like NOW Finance) information such as:
– How many times a company has checked your report to assess your creditworthiness
– If you have any defaults (unpaid bills, overdue credit card payments, or unpaid loans) recorded on your history
– If you have been accepted or rejected for credit or loans in the last 90 days
– Any bankruptcies or court judgements, such as being party to a Part IX Debt Agreement
A higher credit score means you have better credit or creditworthiness than someone with a lower credit score. Scores of 833-1200 are “excellent”, 726-832 are “very good” 622-725 are “good” and anything below 621 is considered “average.”
How Do I Check My Credit Score?
All Australian citizens and permanent residents are entitled to check their credit history once per year for free. There are three major credit reporting bureaus which keep track of credit histories in Australia. You can use any three of these bureaus to check your credit score. The bureaus are:
– Veda (NOW Finance uses Veda to check applicant credit)
– Dun & Bradstreet (D&B)
Some credit reporting bureaus offer services that notify you of changes to your credit score to help stop identity theft. These services usually incur a fee.
Checking your credit score or credit history is a good way to check if your credit report contains errors. Unfortunately, it is your responsibility to look for errors and correct them. Inaccurate information could be lowering your credit score and can stay there for up to seven years.
How A Credit Score Affects Personal Loan Interest Rates
Higher credit scores show lenders you are a lower risk compared to people with lower credit scores. Borrowers with higher credit scores may be eligible for lower interest rates.
If you have your credit score, you could be able to get a more accurate picture of what interest rates are available to you. Click here to get your own personalised interest rate (without any credit checks.)
Stay up to date with the latest finance tips, exclusive offers and receive our latest articles delivered directly to your inbox.
Other articles you might like
All Australian citizens and permanent residents are entitled to check their credit history once ...
Secured vs Unsecured Car Loans – Pros and Cons.
This is the test excerpt added for the page. It will appear in all ...
Do Australians Understand When a Credit Check is Done?
In the majority of cases, a credit check would only be done with your ...
When do Personal Loan Providers Check Your Credit File?
Let’s take a look at when personal loan providers check your credit file, and ...
Australia Moves to NEW Comprehensive Credit Reporting (CCR) Regime
Australia continues to move to a new comprehensive credit reporting (CCR) regime from 1 ...
What Does Mandatory Comprehensive Credit Reporting Mean for Consumers? Benefits and Concerns
CCR is seen as a positive move for ...
Negative vs. Positive Credit Reporting
From 1 July 2018, the big four banks will be required to share much ...
Why are Some Banks against Comprehensive Credit Reporting?
Despite this generally positive outlook, some banks have concerns regarding ...
Approved customers only. Terms, conditions, fees and charges apply. All applications are subject to NOW FINANCE’s lending and approval criteria. Settlement times may vary depending on circumstances. Loan repayment terms range from 18 months to 7 years. Interest rates range from 7.95%pa (9.56%pa comparison rate) to 16.95%pa (18.53%pa comparison rate)
*Comparison rates are based on a loan of $30,000 over 5 years.
WARNING: This comparison rate is true only for the example given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.
EXAMPLE: An unsecured personal loan of $30,000 borrowed for 5 years with the interest rate of 7.95% p.a. (9.56% p.a. comparison rate), would estimate to a minimum total amount payable of $37,741.60 via the weekly payment option (including a $495 establishment fee and $13 per month administration fee). Rates are subject to change.
NOW FINANCE is a trademark of NOW Finance Group Pty Ltd | ACN 158 703 612 Australian Credit Licence number 425142