Most lenders in Australia use a credit scoring system when deciding whether to approve a loan, so good credit is very important.
Credit scoring systems are a broad filter for lenders, which are used to work out whether a loan should be approved. They also identify potential risks, based on a borrower’s past credit behaviour.
Many lenders use Veda – the number 1 credit-reporting agency in Australia. Veda provides a score between 1 and 1,200, with 1 being the lowest and 1,200 being the highest (or most reliable).
If you want to work out your credit rating, head to Veda.
Your credit file includes a number of personal details, including:
If you’re worried your credit score may be low, there are ways to improve it. This means understanding what a lender looks for when assessing whether you are a good candidate for a loan.
The following behaviours are likely to improve your credit rating:
A good mortgage broker will assess where you are at right now, and recommend how you can improve your credit rating, so you look more attractive to potential lenders.
In many cases, there are simply changes you can make, which will help to improve your credit rating and boost your likelihood of securing a loan.
Get started now.