Credit Scores


How important is a good credit score

In a word, VERY!

Credit scoring is used widely throughout the finance world and forms an integral part of the assessment of any home loan, personal or car loan.

The bottom line is, the better your score the better the chances of your loan being approved.  In relation to personal loans even the interest rate you are charged is calculated in part based on your credit score.  

Factors that can affect your credit score

There are a number of factors that make up your credit score including the amount of credit you access during your life, the number of credit enquiries made over the last 5 years and how well you repaid any previous loans.  Repeated enquiries for the same or similar amount will work against you as it looks like you cannot secure the credit your are seeking.

Comprehensive Credit Reporting (CCR)

Comprehensive (or Positive) Credit Reporting is now in existence in Australia.  As the name suggests, your credit score will include not only negative issues but also positive things like when repayments are made on time or ahead of time. Your credit report now includes a 2 year history of your credit facilities incorporating home loans, personal loans, car loans, credit cards as well as utilities  and telco's.  

Ways to Improve your Credit Score

  • lower your credit card limit

  • limit how many applications you make for credit

  • pay your rent or mortgage on time

  • pay your utility bills on time

  • pay your credit card on time each month — either pay in full or pay more than the minimum repayment

Other things that lenders look for to determine if you are a good risk

Whilst not something that is recorded on your credit score, lenders react poorly to adverse entries on statements such as the following:

  • Late fee

  • Penalty fee

  • Late payment fee

  • Insufficient funds

Your should ensure that no such entries appear on any of your statements by making sure payments are made on time and that sufficient funds are in your accounts if institutions are taking funds from your accounts via direct debit.

You can access your credit score at or click on the button which will take you to their site direct