Credit Score Explained...

When you receive your free credit report from us, you’ll notice that your credit score is between 0 to 1200, this is how the credit reporting body, Equifax operates. The higher your credit score is, the better your eligibility for getting a loan approved. It’s important to understand what your credit score is and what steps you could take if you wanted to improve it. To get a copy of your credit file and credit score just fill out our free credit report form.

833 to 1200 – Excellent

You are in the top level of credit scores and in this range you may qualify for larger loans, lower fees & rates as you are seen as a low risk borrower. By having a high credit score like this it could also mean that a lower deposit or no deposit is required.

Your credit file is 5 times better than the average population. This is because it’s assumed that in the next 12 months the odds of no adverse events occurring on your credit file is more than 5 times better than the average population odds.

726 to 832 – Very Good

Your score is seen as 2 times better than the average population! This is because it’s assumed that in the next 12 months the odds you receiving bad credit are more than 2 times better than the average population odds.

You should have no issues obtaining credit (subject to the lenders specific approval criteria). It may be a good idea to keep an eye on your credit report regularly and if you need a personal loan or credit card, make sure you hunt around for the lowest interest rates/fees.

622 to 725 – Good

Your score means that your credit file is in better condition than the average population. This score indicates that you are less likely to incur bad credit on your credit file in the next 12 months and you are seen as ‘low risk’ in the eyes of a lender.

With this type of credit score it’s a good idea to check your current financial situation. Do you have lots of little loans? Maybe it’s time to consolidate with one low interest loan. Wanting to apply for credit? Make sure you don’t make multiple applications as this can negatively impact your score.

510 to 621 – Average

You may experience issues when it comes to getting credit with an Average credit score. It depends on the lenders individual approval criteria, but you can improve your credit score by taking little steps at a time.

It’s important to pay your bills on time and any loan repayments. Schedule your bills and repayments to be directly debited on your payday. If you are currently behind on ANY payments, work out a suitable payment arrangement that you can stick to. It’s important to take control of your debts before they are transferred onto a collection agency.

0 to 509 – Below Average

You’re in the bottom category for credit scores and it’s highly likely that you will have trouble obtaining credit. Your score indicates that you’re the most likely candidate to fall into bad credit within the next 12 months. This includes credit defaults, bankruptcy or court judgments.

You need to repair your credit score. If you’re experiencing financial difficulty/hardship you should speak to a financial advisor. Another alternative is to organise a suitable payment plan with your credit providers – be careful of additional fees when doing so. If you believe that your credit report has inaccuracies, you should contact Equifax or the credit provider.

Below 0 to -999 this indicates that you are currently bankrupt or in a debt agreement.

It is still possible to get finance even in this category. You may need a large deposit and to pay a higher interest rate.