What's the big deal about credit score?

Your credit score is becoming VERY important. Did you know that? It's a single number that is the result of your financial dealings - applying for loans, paying them on time, etc. It's good to look at what it means, and check your own score from time to time.

Why? Every time you apply for credit it will be looked at. A bad score will lead to a decline or a high rate, regardless of how much you earn or how well you qualify in other regards. It's especially important in personal loans and car loans but increasingly used for all credit.

What is your score? You can go to websites like getcreditscore.com.au and get your score in just a few minutes. I just did my own for the first time in a long time {it was one of the numbers on the photo !!)

What do scores mean? under 510 is poor, 511-621 is average, 622-725 is good, 726-832 is very good and 833-1200 is excellent.

How do I improve my score? Here's a few tips;

  1. Don't apply for credit too often (credit cards, loans, etc). You lose points by applying.
  2. Old loans are good loans as it establishes history of paying and respecting debt.
  3. Pay all loans and credit cards on time - set them up as auto-payments where you can.
  4. Have stability in your home address and employment.
  5. Payday lenders are BAD news for credit score.

Will you look up your score?