But here’s the thing! Knowing your credit score and what it does is important if you want to move forward with your financial journey. Let’s unpack the basics together.
Credit scores become important when you want to borrow money – whether from a bank, for a credit card, or even a payment plan.
In Australia, your score can be determined by a credit bureau, such as Equifax. The score you get is based on your personal and financial information.
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A lender will look at this score to decide how likely you are to repay the money you borrow.
Your credit score is an important factor when you apply for a home loan - and it can make or break a deal! The higher your score, the more likely you will have your loan approved!
Knowing what your credit score is can actually be pretty handy. There are a few reasons behind this.
A good credit score could help you negotiate a better deal. And, well… if it’s not so good, you’ll understand why your application might have been rejected.
In Australia, credit scores are usually between zero and 1,200, and the higher the number, the better.
Your credit score is calculated on a couple of factors, including:
Of course, making multiple applications for loans in a short period can also impact your score.
If your score isn’t as healthy as you’d like, don’t worry! Check the information in your report to make sure it’s accurate. From there, there are a few simple things you can do to make life easier.
These simple tips can help your credit score stay healthy when you need it.
RentPay’s digital wallet gives you more control, flexibility and choice in how you pay rent. One of the great features worth considering is Scorebuilder.
Each month you have the Scorebuilder feature, we report your account status to one of Australia’s largest credit reporting bodies.
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If you maintain a good account status, reporting that data to the body over time can positively impact your credit score.
Find out more about how RentPay can help you find financial freedom today.