Knowing your credit score

Published on February 15, 2016 12:34 pm, by

What is a credit report?

Potential credit providers with your permission obtain a copy of your credit report as part of the process in approving credit for you.  Credit reports include a high level of detail, and include repayment histories on credit accounts that you have now or have held previously.

In years gone by credit reports only listed enquiries that you had previously done for finance, serious credit infringements as well as any defaults, judgements and bankruptcies.  This was contingent on these being reported by the financial institution or credit provider that you were doing business with.

Most credit reporting agencies in Australia now would list the following information on your credit report: personal details, previous credit enquiries, details of any current credit arrangements that you have, overdue payments (generally greater than 60 days) and legal information such as bankruptcy, writs and judgements.

As part of your credit report you are given a score between 0 and 1200.  Knowledge of this score can provide consumers with information leading to a higher level of confidence in applying for credit.

Why do I want to see my credit report or know my credit score?

Your report will give potential credit providers information surrounding your enquiries and ability to repay debt where your score will give them a quick snapshot of your credit worthiness, which becomes a risk factor they consider before providing you finance.

Knowing your credit score can assist you with understanding what lenders are considering before they offer (or don’t offer) you credit.  If your score is high, it can potentially give you more negotiating power.  If your score is low, there is an opportunity for you to discover how to increase it.

Where do I get my credit information?

There are different companies that provide this service.  One of these is Veda.  Veda provides different levels of information, a report and a score.

If all you want is a quick indication of the score banks will receive there is a company called Get Credit Score .  This is a free service and GCS access their information from Veda.

Asking Get Credit Score for your score will not show as an enquiry on your credit report.  You will also receive parameters to let you know how good (or bad) your score is.

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Jen is an experienced banking professional who loves wine, coffee, finding a bargain and of course her three beautiful children. Since Jen's first budget led her to buy a home at 20, Jen has passionately helped others to make better decisions with their money.

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