Do you know your credit score or why it matters? Your credit score is important as many lenders use it to understand your past credit profile. This infographic helps explain the basic facts you need to know about credit scores and how they might affect you.
View the accessible text version of the infographic below or download the PDF version.
How is your score calculated? Your credit score can be affected by a range of factors, including:
- Numerous credit enquiries in a short time frame
- Nominations to be a guarantor
- Overdue debts and defaults (listed for 5 years)
- Bankruptcy (listed for 10 years and under)
- Late payments for mobile phones, electricity and gas services
- Interest-free store finances
- Court writs or judgements
Don't have your credit report? Get it free from a credit reporting bureau such as Equifax (previously known as Veda).
Who looks at your credit score? These are just some of the places:
- Rental agents
- Insurance companies
Your credit score is important as many lenders use it to understand your past credit profile. It can determine your ability to:
- Get a home loan or credit card
- Obtain insurance
- Connect electricity or gas
- Rent a house
4 facts on defaults:
- Fact #1: You can default on credit card payments, mortgages or even bills
- Fact #2: Lenders issue a default notice when you fail to pay debt that is due
- Fact #3: Legally, lenders must contact you multiple times to chase up your payment
- Fact #4: If you still fail to repay the amount, a default could be listed on your credit file.1
Received a default notice? Keep calm. Just because you receive a default notice, It does not mean it will be listed on your credit report
Credit scores - by the numbers
- 71 is the percentage of Australians who have never accessed their credit report.2
- $150 is the minimum amount of debt for a consumer default notice.3
- 60 is the number of days overdue before a consumer payment default can be listed.3
- 5 is the number of years defaults and credit applications can stay on your report.4
- 30 is the percentage of Australians who accessed their report and found mistakes on it.5
If your home loan application has been declined due to your credit score, don't despair. Unlike many lenders, Pepper Money doesn't just look at your credit score, instead we look to understand your whole individual circumstances to get a full picture of your financial position today. Interested in learning more? Take our What's your credit rating IQ quiz? or read our 7 fast facts about credit scores.
5. www.choice.com.au/money/credit-cards-and-loans/home-loans/articles/ how-to-protect-your-credit-rating
This article provides you with factual information only and is not intended to imply any recommendation about any financial product(s) or constitute tax advice. If you require financial or tax advice you should consult a licensed financial or tax adviser. Neither Pepper nor its related bodies, nor their directors, employees or agents accept any responsibility for loss or liability which may arise from accessing or reliance on any of the information contained in this article. For information about whether a Pepper loan may be suitable for you, call Pepper on 13 73 77 or speak to an accredited Pepper Money broker.
All applications are subject to the credit provider’s credit assessment and loan eligibility criteria. Terms, conditions, fees and charges apply. Information provided is factual information only and is not intended to imply any recommendation about any financial product(s) or constitute tax advice. If you require financial or tax advice you should consult a licensed financial or tax adviser.
©Pepper Money Limited ABN 55 094 317 665; AFSL 286655; Australian Credit Licence 286655 (“Pepper”). All rights reserved. Pepper is the servicer of home loans provided by Pepper Finance Corporation Limited ABN 51 094 317 647. Pepper Asset Finance Pty Limited ACN 165 183 317 Australian Credit Licence 458899 is the credit provider for asset finance loans.