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 bandExperianEquifax
Excellent800-1000833-1200
Very good700-799726-832
Good625-699622-725
Fair / Average550-624510-621
Weak / Below average0-5490-509

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 lenders will award different interest rates depending on your determined risk. The lower your risk, the better your rate will be.

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

  • Check your credit report 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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20 Responses

  1. Default Gravatar
    MiraOctober 16, 2018

    Hi,
    I have a personal loan and a chapter 9 debt agreement loan. My credit score shows that my rating is excellent. Can I get a loan that will combine both loans that would leave me with only one payment instead of two.

    • finder Customer Care
      JohnOctober 17, 2018Staff

      Hi Mira,

      Thank you for leaving a question.

      You may click on this link to see a panel of lenders who may assist you on debt consolidation. Kindly review and compare your options on the table displaying the available providers. Once you have chosen a particular provider, you may then click on the “Go to site” button and you will be redirected to the provider’s website where you can proceed with the application or get in touch with their representatives for further inquiries you may have.

      Before applying, please ensure that you meet all the eligibility criteria and read through the details of the needed requirements as well as the relevant Product Disclosure Statements/Terms and Conditions when comparing your options before making a decision on whether it is right for you. Hope this helps!

      Cheers,
      Reggie

  2. Default Gravatar
    JohnSeptember 24, 2018

    I have a Rolling Line of Credit Account and a Home Loan account can I combine the two and apply for a single loan or should I keep them separate

    • finder Customer Care
      JoshuaSeptember 27, 2018Staff

      Hi John,

      Thanks for getting in touch with finder. I hope all is well with you. :)

      Some institutions may allow you to combine your line of credit account and home loan account by refinancing them all at once. If this is something you want to explore, please go to this page. On that page, you should be able to find lenders who do loan refinancing. Compare your options and please review the criteria and details of the loan product. Click on the “Go to site” green button to get in touch with the lender directly to discuss your need. They should be able to give you further information on the best course of action that you should take.

      I hope this helps. Should you have further questions, please don’t hesitate to reach us out again.

      Have a wonderful day!

      Cheers,
      Joshua

  3. Default Gravatar
    ShaniSeptember 7, 2018

    Can you pay off cash converters payday and personal loans with a credit card?

    • finder Customer Care
      JoelSeptember 7, 2018Staff

      Hi Shani,

      Thanks for leaving a question on finder.

      Most credit cards that offer low or 0% balance transfer rates only accept debts from Australian credit cards, store cards or charge cards. But there are also a limited number of credit card providers that allow you to balance transfer a personal loan debt, including Citi, Coles, Qantas Money and Virgin Money.

      Please use this guide to compare balance transfer credit cards that accept personal loan debt. You can also find out what steps you need to take to transfer your personal loan debt to a credit card and the key factors to consider so you can find the right card to pay off your debt.

      Cheers,
      Joel

  4. Default Gravatar
    StephenAugust 31, 2018

    I have a great score of 830. Is what on this file exactly what the bank would see if I apply for a refinance housing loan?

    • finder Customer Care
      JhezelynAugust 31, 2018Staff

      Hello Stephen,

      Thank you for your comment.

      Please note that when you apply for any loan, lenders may conduct a hard pull on your credit report. This is one of their ways to conduct a credit check to the applicant. So the details on your report are exactly what the lender sees.

      You may want to know more about hard pull and how this can impact your credit score. I hope this helps.

      Should you wish to have real-time answers to your questions, try our chat box on the lower right corner of our page.

      Regards,
      Jhezelyn

  5. Default Gravatar
    JessicaAugust 15, 2018

    I am surprised to find I have a good credit score, is experion accurate? Does your credit score get calculated every financial year?

    • finder Customer Care
      JoelAugust 15, 2018Staff

      Hi Jess,

      Thanks for leaving a question on finder.

      Congratulations for having a good credit score. Generally, lenders report both positive and negative information to the credit bureaus once per month. So your credit scores can change a bit each month, depending on the information that’s landing on your credit reports. Experian is one of the three major credit-reporting bureaus in the world and is considered to be accurate.

      Cheers,
      Joel

    • Default Gravatar
      JessicaAugust 15, 2018

      Hi thankyou for the quick response, however looking at another website my credit score has more information available and is considerably lower, so now I’m not sure which is more accuarate or what companies may use. I have been declined recently for a loan for which I believe is a bad credit score.

    • finder Customer Care
      JhezelynAugust 25, 2018Staff

      Hi Jessica,

      Thank you for your comment.

      It’s worth noting that finder supplies the information directly sourced from Experian. You may want to access your credit report so that you’ll know if it’s the updated score.

      Should you wish to have real-time answers to your questions, try our chat box on the lower right corner of our page.

      Regards,
      Jhezelyn

  6. 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

  7. Default Gravatar
    June 19, 2018

    How do I check a friends credit rating?

    • Default Gravatar
      ArnoldJune 19, 2018

      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

  8. 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

  9. 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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