Credit Rating | Credit Score

We understand it can be quite confusing, but it’s an important key to help you move forward with your financial journey.

Empowering you to understand and improve your credit rating is one of our goals, so let’s get started.

In Australia, your credit rating can be determined by a number of credit bureaus, including Equifax and Illion. Each has their own way of providing your credit rating (or score) and although they may slightly differ, their principles are the same. Here’s a general guide.

Only the credit bureaus know their exact formula to calculate your score.

We do know that it does depend on what is listed on your credit history with them. And given your details can differ with each credit bureau (because lenders and service providers may only choose to list their interactions with you with a specific credit bureau) your score will likely vary between each credit bureau.

Your credit history records your personal details, such as full name, date of birth, employment and address, as well as any credit activity such as taking out a credit card/loan or using a service provider like a telephone, water or electricity company.

It can also show if you’ve been late with paying any of your loans and bills. Your score is generally recalculated and updated monthly and considers your credit history over the past 5 – 7 years.

If you have never borrowed money or used a service provider, then you may not have a credit history. This will mean potential lenders won’t know if you can be relied on to repay a debt, so it actually reduces your credit score and can make it harder to get a loan.

Comprehensive Credit Reporting (CCR) is also referred to as “positive reporting”.

It officially began in Australia from September 2018 (being compulsory for the Big 4 Banks and optional for other credit providers.)

It enables your credit report to include additional credit information and repayment history information. This then gives a more complete and fair picture of your credit history, such as when you make your loan repayments and if they are paid by the due date.

Fair Go Finance was Australia’s first small loan provider to go live with CCR in October 2019. As a result, an improvement in credit score continues to be seen for our active loan customers with good repayment conduct, helping them to move forward financially.

To find out more about Comprehensive Credit Reporting, please read our blog “What is CCR?“.

If you’d like to understand more about your credit history, why not read our blog “What’s the difference between your credit history, credit file, credit report and credit score?”

If you’d like to obtain a copy of your credit report from Equifax, our blog “What is my credit score? Find out now for free” will explain exactly what you need to do.

Want to know how you can actively improve your credit rating? Read our blog “5 tips to improve your credit score.”