Credit Score Information
At some point in your life, you may come across a default or negative listing on your credit report which will effect your credit score. A credit default or adverse information on a credit file can impact your ability to move forward with a finance application and you will need to clean your credit history. That is why a service like ours at Clear Credit Solutions is vitally important. Clear Credit Solutions can assist in helping remove any adverse listings from a credit report in Australia. That way there is nothing stopping a finance application from proceeding.
However, not all listings can be removed from a credit report. Only some listings can be removed and checking your file first along with a follow up phone call or enquiry to Clear Credit Solutions is best practice. Our friendly team can assist with any enquiries from client’s or brokers about adverse credit defaults or information.
Along with a team of friendly staff, we at Clear Credit Solutions are the proud winners of the Product Review Award for Best Credit Repair Company in Australia for 2020 & 2021. We have a range of useful articles like this one about credit score information to assist you.
What's a credit score and how can you improve yours?
If you’re planning to apply for a home loan or another form of credit, it’s important your credit score is in good shape. Not sure what a credit score is, or how you can improve it? Don’t worry – this article and the infographic below provide you with all the information you need to know!
Your Equifax credit score is a number between 0 and 1,200.
What is a credit score?
Your Equifax credit score is a number between 0 and 1,200. It uses the information on your credit report at a point in time and translates this into a numerical figure that indicates your creditworthiness. The higher the number, the less risky you are seen to be by credit lenders, and the more likely they are to grant you the credit you’re applying for – whether that be a home loan or a credit card.1
How is your credit score calculated?
Equifax sources information from credit providers and public record information, such as court writs and judgements relating to credit, to generate your credit score using a special algorithm that gives weighting to different variables. We use this algorithm to compare your credit behaviour to the rest of Australia’s population.
The higher your credit score, the more likely it is that providers will grant you credit.
What affects your credit score?
The important thing to bear in mind is that your credit score can fluctuate. So if your credit behaviour improves then your score can change to reflect this. Your credit score is affected by factors such as:
- Your repayment history
- Applications you’ve made for credit
- Unpaid debts or defaults
- Adverse information like court writs and judgements
- Credit limits
- Personal information
- The age of your credit report
How can I improve my credit score?
There are a number of ways you can improve your credit score:
- Check your Equifax credit score and get a copy of your credit report. That way, you can see what it is, and whether you need to take action to improve it.
- Pay off your debts and close your credit card accounts, refinancing or consolidating them to make it easier to pay off.
- Pay your mortgage, personal loans, credit cards, phone and utility bills in full every month.
- Only apply for credit when you need it – shopping around for credit, making lots of applications in a short amount of time can negatively impact your credit score.
Get a free copy of your credit report by calling 13 8332 or ordering online. Please note that free credit report does not include a credit score. To get your credit score, visit Equifax.
1 Australian Securities and Investments Commission. Credit scores. Accessed October 2017.