Remember how you used to get grades at the end of every term? And the better your grades, the more chance you had of scoring a gift from your folks?
Well, that’s kind of what a credit score is.
It’s a number based on your credit history that lenders and banks take into account before deciding whether to lend you money.
Higher score = more creditworthy.
So, how’s it worked out?
- Your age
- Your loans
- The number of applications you’ve made
- The type of credit accounts you’ve held
- Your usual repayment amount/s
- Whether you repay on time
- If you’ve had a bankruptcy/personal insolvency agreement.
Now here’s the good news. Your credit score is dynamic. If you become a model citizen and make your bills and loan repayments on time, it will skyrocket into the good range and the lenders will come running.
Visit ASIC MoneySmart to find out your credit score.