June 4, 2020
Not sure how credit scores are calculated or what yours might be? Find out everything you need to know about credit scores here.
A credit score is a number that's calculated based on the information in your credit report, which provides a summary of your lending history. Your credit score essentially rates how reliable you are in terms of paying back money you've borrowed.
Depending on the credit reporting agency, your credit score will usually be graded between 0 and 1,000 or 0 and 1,200. Having a high credit score means you're more likely to get approved for loans, whereas some financial institutions are unwilling to lend to people with low credit scores.
Worried your credit score might have taken some hits over the years? You may still be able to get approved for a loan even if you've had some financial mishaps in the past. Join us as we look at how credit scores are calculated and their impact on your ability to borrow money.
In Australia, credit reporting agencies consider several key factors when calculating credit scores, including:
It's possible to find out your credit score for free. It's worth checking your credit score regularly, just so you know where you stand. And if you need to apply for a loan, knowing your credit score will give you an idea of how likely you are to get approved. You'll need to prove your identity to get access to your credit score, but this should be a relatively easy process.
To find out your credit score, Moneysmart.gov.au recommends the follow crediting reporting agencies:
Got a bad credit score? At Sunshine Loans, we believe in second chances. Even if you have a less-than-perfect financial history, we may still be able to lend you money depending on your circumstances. Learn about our bad credit loans and apply online today.