Credit scores-do you know yours?

1.What is a credit score?

Lenders might use your credit score to decide whether or not to approve your loan.  Your credit score is based on your personal financial information. Your credit score is based on:

• The amount of money you have borrowed
• The number of credit applications or enquiries you have made
• Whether you have pay on time or default on payments

A lower credit score can affect your ability to get a loan with some lenders.

2. Are credit reports free?

Credit reports that show your credit score is free. You can obtain a credit report from the following credit report agencies:

• Equifax
• Ilion
• Experian

Other agencies that will give you a free Credit rating are:

• Credit simple
• Finder
• Canstar

3. What can you do to improve your score?

Things that you can do to improve your credit score are:

• Lower your current credit card limits
• Minimise the number of times you make credit enquiries
• Pay all your bills on time