What is GetCreditScore?
Launched in 2014, GetCreditScore is an online service that obtains credit scores and credit reports from Equifax (one of the three largest consumer credit reporting agencies in Australia, along with Experian and Illion) and allows users to access their credit data online. Explanations of what factors affect a credit score and how it can be improved are also available.
After accessing your credit score, you can then compare quotes of various financial products on the website such as personal loans or credit cards.
What is a credit score?
According to GetCreditScore, your credit score is a number that summarises information from your credit report. This number indicates your risk to a financial institution and can be used by credit providers in deciding how trustworthy you are as a potential borrower.
What is a good GetCreditScore score?
GetCreditScore says it uses the Equifax model in obtaining consumers’ credit scores. The number will range from zero to 1,200, which will then place you in one of five categories ranging from ‘Below Average’ to ‘Excellent’, indicating what your perceived risk is to a lender and whether the amount loaned will be paid back.
|Below Average||Average||Good||Very Good||Excellent|
Below average (Bottom 20%): If you have a below average credit score, then a default, court judgement, bankruptcy or similar event is considered to be very likely to occur within the next 12 months when compared with the average credit-active Australian population as recorded by Equifax.
Average (21% – 40%): If your score is average, the model predicts that a defaults, court judgment, bankruptcy or similar is likely to occur within the next 12 months.
Good (41% – 60%): According to your history, defaults, court judgment, bankruptcy or similar are considered less likely to occur within the next 12 months if you have a score in this range.
Very good (61% – 80%): Based on your credit report, defaults, court judgment, bankruptcy or similar are considered unlikely to occur within the next 12 months.
Excellent (81% – 100%): It is seen as highly unlikely that an adverse event such as a defaults, court judgement, bankruptcy or similar will occur within the next 12 months.
GetCreditScore is one of many credit score providers and may not be the one your chosen lender decides to use. Due to a number of credit score providers being available, your score may differ per company. Though it may be different, the risk level you are placed on, whether it be ‘Excellent’ or ‘Very good’, should still be the same and not alter drastically.
Bear in mind that GetCreditScore is one of several credit score providers, and may not be the one your chosen lender decides to use and it’s possible that your credit scores from different credit bureaus may differ from the one GetCreditScore gives you.
How does GetCreditScore calculate your credit score?
GetCreditScore says its credit scores are calculated based on your past and present financial behaviour that has been reported to Equifax by sources such as banks, credit unions and payday lenders.
According to GetCreditScore, there are many factors that will be looked at such as;
- Your credit accounts and their limits
- Repayment history
- Negative information on your file such as bankruptcy and overdue debts
- Your age
- Length of employment
- How long you’ve lived at your current address
- The type and number of loans you have applied for
- If you own a business, where is it and how long it’s been there
How do I improve my credit score?
If you have received a lower score than expected or are wanting to keep that number high, there are ways to improve and maintain your credit score. Equifax recommends the following:
- Apply for credit only when needed
- Avoid making multiple applications to different credit lenders in a short amount of time
- Pay off debts and close any credit card accounts, or consolidate them if that’s more appropriate in order to help you pay them off
- Pay your bills and meet credit repayments on time every month
To find out more about credit scores, how they work, and the impact yours can have on your finances, visit our credit score information hub.
Main image source: VectorHot (Shutterstock)