In Australia, lenders such as banks, credit card companies, utilities and telcos can use your credit rating to assess the risk of lending you money.
A credit rating or “credit score” as many people refer to it, is a number that is calculated using the information on your credit file. It is a simple representation of your suitability to a lender for a line of credit, as it demonstrates a person’s ability to adhere to and meet financial obligations.
Your credit score is important because it directly influences the amount of credit a lender will provide to you as a borrower. It can also affect the interest rate that a lender offers you and any other terms a lender may present to you, when trying to obtain a line of credit. It is imperative that when you are thinking about obtaining finance of any kind that you check your credit file, and your credit score first (Easy Credit Repair can help you do this).
So what credit score should we be aiming for? Credit scores fall into five categories, which are listed below to assist you in establishing which category you fall into:
Excellent: 833 – 1200
Very Good: 726 – 832
Good: 622 – 725
Average: 510 – 62
Below Average: 0 – 509
Accordingly, the higher your credit score the better your credit rating is going to be. If you find yourself with a low credit rating that is below average, or even average, then this can make your options of obtaining credit, difficult and somewhat limited.
Easy Credit is able to assist you with increasing your credit score. For a free credit file analysis on how we can work towards increasing your credit score contact us today!