What even is a credit score?

  • Think of your most valuable assets:
  1. 1. Your wallet
  2. 2. Your phone
  3. 3. Your credit score
  • But get this: More than 70% of Aussies don’t even know what a credit score is.

Did you know?

  • To get things like a mortgage, a credit card or even a phone bill, you need a credit score.

Okay so it's important, but what is it?

A credit score is like an Uber rating, but for money. It tells you where you stand with your credit situation and how you appear to banks and lenders. 

Ever wondered by you may have been rejected for that loan or credit card? Aha. Credit score.

The details

It's a number between 0 - 1200 that represents the history of all your dealings with loans, credit cards, mortgages as well as phone and electricity bills. 
 
When you apply for a loan, the bank or lender uses your credit score to work out how "risky" you are as a borrower and then decide if it's a yay or nay.
 
But wait, there's more: Even after you've been approved for a loan, your credit score can still impact the amount you can borrow, as well as the interest rate you pay (AKA the amount you have to pay each month).
 
Bored from this overview? Watch this 1 min video.
 

 

 

Better score = better interest rate

 
The better your score, the better you chances of getting a lower interest rate on a loan. With a lower interest rate, you can save a lot of money. It's as simple as that.
 
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