Who Decides Your Credit Rating Score?

Have you ever wondered how your credit score is determined? Who decides if you have a good or bad score? In this useful article, we will explore the various factors that go into determining your credit rating score. We will also discuss how to improve your credit score if it is not where you want it to be. So, let’s get started!

Lenders want to make sure you’ll pay back your loan on time and in full. They check your credit score when offering you a loan or credit card. The financial institution will consider your credit rating when deciding whether or not to lend you money, how much to lend you, and even what interest rate they will give you.

However, there are a few organizations that can assist you in improving your credit score. But who is responsible for calculating your credit rating and how do they go about it?

Your credit score is determined by one or more of the three Credit Reporting Bureaus in Australia (CRBs). These organizations collect, store, utilize, and disclose personal and credit-related information about individuals. When you apply for a loan or credit, the lender contacts one (or more) of these agencies with your personal information and the amount of credit you are applying for. The CRB analyzes this data and subsequently calculates your credit rating. The decision to grant you a loan is made based on the preferences of the bank.

There are three primary CRB agencies in Australia. The first is Equifax Australia, Illion and Experian.

Credit agencies use the information in your credit file to calculate your credit rating, which is a score that represents your creditworthiness. This score is used by lenders to help them decide whether to approve your loan or credit application. The information used to calculate your credit rating includes your personal details, such as your age and address, as well as information about the type of credit providers you have used in the past. Additionally, the amount of credit you have borrowed, the number of credit applications you have made, and any unpaid or overdue loans or credit will also be considered. Finally, any Debt Agreements or personal insolvency agreements relating to bankruptcy will also be taken into account. All of this information is used to give you a single credit score, which can then be used by lenders to assess your creditworthiness.

So if you’re in a situation where your credit rating isn’t where you need it to be, don’t worry. Clear Credit Solutions can help fix credit rating and get you back on track so that you can obtain finance and move forward with your life. We specialize in removing credit defaults and negative listings off credit files, so contact us today for a free credit file assessment and let us help fix credit rating!