Credit Score

Home  >  Articles   >   Credit Score

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 900-1200 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:

– Equifax Australia
– Illion (formerly Dun and Bradstreet (Australia) Pty Ltd)
– Experian Australia Credit Services Pty Ltd

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.)

Category: Credit Score, Understanding Credit

Stay up to date with the latest finance tips, exclusive offers and receive our latest articles delivered directly to your inbox.



New loans only. Applications for finance are subject to NOW Finance’s lending and approval criteria. Terms and conditions may apply. No fees apply however if you do not comply with the terms of your loan, we may pass on to you any third party enforcement or recovery costs incurred by us. Settlement times may vary depending on individual circumstances. Loan repayment terms range between 18 months to 7 years. For unsecured loans you can borrow between $5,000 to $50,000 with interest rates ranging from 5.95% p.a. (5.95% p.a. comparison rate*) to 17.95% p.a. (17.95% p.a. comparison rate*). For secured loans you can borrow between $15,000 to $100,000 with interest rates ranging from 4.45%p.a. (4.45% comparison rate*) to 15.45% p.a. (15.45% p.a. comparison rate*).  


The Comparison Rate is designed to help you understand the overall cost of the personal loan. It combines the amount of the loan, loan term, repayment frequency, interest rate, fees and charges into a single rate to show the total true cost of the loan. The comparison rates for the NOW Finance loans are based on a loan of $30,000 over 5 years. WARNING: The comparison rates given are true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. NOW Finance does not charge any fees therefore the true cost of the loan or Comparison Rate will always equal the interest rate quoted.


An unsecured personal loan of $30,000 borrowed for 5 years with the interest rate of 5.95% p.a. (5.95% p.a. comparison rate), would estimate to a minimum total amount payable of $34,686.60 via the weekly payment option. Rates are subject to change.


Our confirmed guaranteed personalised rate may change if you provide NOW Finance with incorrect personal information or security details. In some circumstances, NOW Finance may require further information from you in order to provide you with your guaranteed personalised rate.

NOW Finance is a trademark of Now Finance Group Pty Ltd ACN 158 703 612 Australian Credit Licence number 425142, as agent for NF Finco 2 Pty Ltd ACN 164 213 030