Your credit report contains a summary of your financial history, your credit score also reflects how reputable you are or have been with your creditors and is maintained by credit reporting agencies.
The report also records how often you have applied for a loan and whether you have been successful – or not – in getting credit.
Equifax (formerly Veda) is the country's largest credit reporting bureau and scores you with its proprietary Equifax Score, a number between 0 and 1200, the higher the number the less of a risk you are.
Credit Scores are one of the main key indicators that a credit company will use when determining if they should lend money to you.
The guide below is broken down in bands with an explanation of how each band is determined by Equifax, as well as stats to show the percentage of the population is within that score range.
Your credit score is recorded over a 2-year period, so for example payment defaults, court judgments and defaults that are recorded during this period can affect your score. Bankruptcies can take up to 5 years to stop affecting your credit score.
Before you get disheartened, there are ways to manage your credit score and start to push it upwards.
We have highlighted some of the behaviours you could action to start to impact your credit score:
Some points to note here are; bills of $150 or more that remain outstanding for 60 days or more can be reported as a miss payment or a default – the later payments you have the more this will impact your credit score.
Another payment that can impact on your credit score is loan payments, make them on time or at least within 14 days of the due date to maintain a good credit history.
Also, it helps to not make too many loan applications; too many loan applications over a short period of time can greatly affect your profile and in turn affect your credit score.
Applying for a car loan with 1800Approved does not affect your credit score. At 1800Approved we have access to 40+ lenders to find you a financial solution that is tailored to you.