How to Check Your Credit Score

Checking your credit score is highly recommended at least once per year. You can order your credit report through Equifax, and we’ll send it to you within minutes. Most banks and financial agencies will use your credit report to see if you’re a suitable candidate for a loan in Australia. By using this instant credit check, lenders can decide if you’re a low-risk applicant who’s more likely to pay the instalments on time.
If you apply for a loan and your application is denied, you can order your credit report and check the information in your credit score to understand what happened. If you have a bad credit history, you may need to take the necessary steps to improve your credit score. A low credit rating is often caused by not paying your loan repayments on time or not paying your credit card bill when it is due. Other factors that may contribute to a poor credit rating include allowing your bills to become overdue until they seek the services of a credit recovery agency. If you apply for several different loans in short succession, these may also negatively impact your score.
When you read through your credit score online, you can contact the credit reporting bureaus if you see anything that isn’t correct. At Equifax, if there’s anything amiss in your report, we’ll handle the investigation and return your results.

If there are unauthorised additions to your credit report (such as credit cards you don’t have) and the lender confirms that these are not errors on their part, then you may have been a victim of identity theft or fraud. In Australia, ID theft is relatively common. In most situations, people only become aware of a problem after accessing their credit reports.

Why is it important to check your credit score regularly?

Keeping a close track of your online credit score can give you a heads-up if there are any unwanted changes, for example, if your identity is stolen and the thieves attempt to open a credit card in your name. Generally, if you notify banks and financial lenders that a loan has been fraudulently opened in your name in a reasonable timeframe, you may not be held liable for their losses. However, if it is shown that you knew there was a problem and neglected to take action, you may be responsible for their losses as you’ve acted irresponsibly. To keep on top of your credit reports, you can apply for the Equifax subscription reporting service. Then we can notify you if there are any challenges to your credit score, and we’ll also provide you with insurance that’ll cover you for losses due to identity theft.
If you have a low credit rating due to bad credit history, keeping a watch on your credit report can help you improve it. Using the resources available at Equifax and having a focused effort to repair your credit is an excellent method for improving your credit score.

How to check credit score?

The easiest method for checking your credit score is requesting one from Equifax. When you apply for your credit report, we’ll need some of your details. These details can include your driver’s licence, passport, and Medicare cards. We’ll require you to complete a 100-point identity check (similar to when you open a bank account). After all the required documents have been sent and accepted, we’ll process your report and send it to you.
After receiving your report, you can read through it and check that everything is accurate according to your records. The report will detail your credit dealings and give you a score from 0 to 1,200. The higher the number on your report, the better your credit rating. You can request your credit score online every three months or within 90 days of having a loan application denied.

How to improve your credit score?

If you’ve completed a credit health check and found it is not as high as you’d like, you can start making changes to your financial situation to improve it. The first step to getting a credit rating that helps you obtain a good loan is to keep a good relationship with your current bank or financial institution. When you have a positive relationship with your bank, they are more likely to provide you with a loan that has competitive terms for you even if you have a less-than-ideal credit score.
In some cases, a bad credit rating can result from not having any previous credit history. To build a credit rating, you need to have shown that you are responsible enough to make consistent repayments on loans. An easy way to improve your credit history is with a small loan or credit card. If you have any bills under your name, make sure these are all paid consistently. While bill payments may not be reportable, they can help create good financial habits.
When you’re looking to improve your credit score, it is best to keep a close watch on your credit report. With an Equifax subscription, we can monitor your credit report and notify you of any changes. If you have a specific goal in mind for your credit score, then regular reporting will help you get there. All your efforts to improve your credit score will help you build good financial habits.
Even if you’ve had a default recorded against you, all new additions to your score will contribute to building a new reputation. Defaults will remain on your credit history for five years even after they’ve been cleared. However, many lenders will look into your more recent history to get a clearer picture of your financial situation.

Disclaimer: The information contained in this article is general in nature and does not take into account your personal objectives, financial situation or needs. Therefore, you should consider whether the information is appropriate to your circumstance before acting on it, and where appropriate, seek professional advice from a finance professional such as an adviser.