good-credit-score

What to do with a good credit score

It's more than just a number: Find out how your good credit score can benefit you.

If you've checked your credit score and found it falls into one of the higher credit bands, it's important to understand how to use it to your advantage. This guide will take you through what a good credit score is, what you can do with your good credit score and how you can improve it.

What is a "good" credit score?

In Australia, you can check your credit score from credit scores with credit bureaus such as Experian or Equifax. Each bureau will use a different scoring system and so a "good" credit score will be different with each. Any Experian credit score over 625 is "good" and any Equifax credit score over 622 is "good".

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The following is a breakdown of credit scores from both providers:

Credit band Experian Equifax
Excellent 800-1000 833-1200
Very good 700-799 726-832
Good 625-699 622-725
Fair / Average 550-624 510-621
Weak / Below average 0-549 0-509

I have a good credit score. What can I do with it?

A good credit score can lead to a range of benefits. Here are some options to consider:

  • Ask for a discount on your home loan. Your good credit score indicates a steady financial situation, so you may be able to negotiate a better rate with your home loan provider, or even get certain fees waived. Keep in mind this generally won't work for a credit card or personal loan.
  • Consider a peer-to-peer loan. This is a relatively new type of lending where your interest rate is based on your credit score. The better your credit score, the lower your rate, which can be as low as 4% p.a. for an unsecured personal loan.
  • Get rewarded. If you're in a stable financial situation and you're considering getting a credit card or upgrading your current one, why not consider one with rewards? If you repay your balance in full each statement period, you won't have to pay any interest.
  • Opt for a risk-based lender. Similar to P2P loans, some newer lenders will award different interest rates depending on your credit band. If you have a good credit score you'll receive a better rate for your loan.

I don't have a good credit score. How can I improve it?

  • Check your credit file for ways to improve. A low credit score indicates negative listings on your credit file. While you can't remove negative listings, you may be able to improve some of your other listings. For example, if you aren't using your full credit card limit, you might consider reducing it. This indicates responsible borrowing and may improve your credit score. Check your credit report for free with finder today so you can identify listings that can be improved.
  • Repay your bills on time. Ensure that you make all your repayments on time. Even if there are high-risk listings that you cannot improve, your positive behaviour going forward will be looked upon favourably.
  • Redirect mail when you move. If you move, make sure creditors have your current address. This will reduce the risk of defaults or missed payments due to your bills being sent to the wrong place.
  • Don't make multiple applications for credit. Every time you apply for credit, it gets listed on your credit file. Multiple applications in a short space of time can have a negative effect on your credit score. Try to space out your credit enquiries and if you already have multiple enquiries listed on your file, wait until they have expired before you apply again.
  • Monitor your credit. You should check your credit score regularly, which you can do for free with finder, and see if it changes. You should also keep an eye on your credit report to see new listings, repayments information or when listings are removed.

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8 Responses

  1. Default Gravatar
    BinduAugust 1, 2018

    My credit score is very good, how can I improve to get excellent

    • finder Customer Care
      NikkiAugust 1, 2018Staff

      Hi Bindu!

      Thanks for your inquiry.

      Good job on earning a very good credit score! If you’re looking how to keep this status, you may read the part on this page that says ‘I have a good credit score. What can I do with it?”

      Best regards,

      Nikki

  2. Default Gravatar
    June 19, 2018

    How do I check a friends credit rating?

    • finder Customer Care
      ArnoldJune 19, 2018Staff

      Hi Rodney,

      Thanks for your inquiry

      Is this your first time requesting a free credit score? We have a guide that will help you through the process. Please click here for the full guide to getting your free credit score.

      Hope this information helps

      Cheers,
      Arnold

  3. Default Gravatar
    NileshMarch 26, 2018

    Hi,
    I want to get a credit score for some banking purpose. Currently I am on my 457 visa and I don’t have a drivers licence for Australia or a Medicare card. Please advise me how to get a free credit report.

    Thanks,
    Nilesh

    • finder Customer Care
      CarloMarch 27, 2018Staff

      Hi,

      Thank you for contacting finder.

      I understand that you would like to get a credit report.

      Here is a link for you to get started on your credit rating.

      https://www.finder.com.au/credit-score

      Thanks.

      Carlo

  4. Default Gravatar
    PeadairFebruary 28, 2018

    Hi! I was hoping to get a credit score check done but I only have a proof of age card.

    • finder Customer Care
      JhezelynMarch 1, 2018Staff

      Hi Peadair,

      Thank you for your comment.

      Unfortunately, you may unable to access your free credit report through finder by using the proof of age card. You need a driver’s licence to access your credit score through finder. If you have a Medicare ID or Passport you can use this link to order a free copy of your credit file.

      For reference, you may check our a step-by-step guide to getting your credit score.

      Regards,
      Jhezelyn

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