How your Finder credit score works

What is a credit score?

So first things first, what is a credit score?

Your credit score is a number between 0 and 1,000 that determines how credit-worthy you are. It's one of the factors that lenders use when deciding whether to lend you money and a good indicator of your financial health.

It basically takes into account your financial history and helps lenders determine your borrowing power, so it's vital you take steps to ensure that your credit score is as healthy as possible.

Your Finder credit score is provided by Experian, one of the 3 major credit reporting bureaus in Australia.

How do credit scores work?

You might have noticed that you may get a credit check if you apply for a home loan, credit card or even a new mobile phone plan!

When you apply for most types of credit in Australia, your lender will check your credit score and might request a copy of your credit report.

This score will tell them how strong your credit history is, which is an indicator of how trustworthy and reliable you are when it comes to loans and credit.

What are credit scores used for in Australia?

Generally, a credit score is used by lenders to understand how reliable you will be in paying back credit. There are a few main areas where your credit score is taken into account for lending and money applications.

• Taking out a loan from a bank
• How much banks are willing to lend you for a home loan
• What interest rates to charge you
• Whether you're eligible for a car loan, personal loan or credit card
• Signing up for a new mobile plan
• Setting up an account with an electricity or Internet service provider
• Getting a new credit card and what your limit should be on it
• Buying a car through dealership finance

What credit score should you aim for?

The higher your credit score, the better your chances of getting a loan or credit card. When it comes to your Finder credit score, any score of 625 or higher is considered a "good" credit score.

It's important you take steps to improve your credit score where you can, especially if you have a poor credit score.

Finder credit score ranges

What's the difference between a credit score and a credit report?

Your credit score is the number that helps lenders decide how much you can borrow, while your credit report contains all the details of how that score was decided on.

It's a good idea to check both your credit score and your credit report. You can check your full credit report and score by visiting the credit score tab on your member dashboard.

What appears on my credit report?

• Your personal details (name, date of birth, employment history and length of time at your home address)
• The type and amount of credit you have applied for in the past (including the credit provider, product, opening and closing dates and the credit limit)
• The number of credit applications you've made
• Your repayment history on credit accounts (showing if you've paid on time)
• Overdue accounts
• Information regarding any court judgments or bankruptcy