How to tell a good credit score from a bad one
On its own, a credit score is just a number. To know whether it’s “good” or “bad”, it helps to understand the context.
🧐 Who calculates your credit score?
In Australia, there are three main credit reporting bodies: Experian, Equifax, and Illion.
They collect and store information that relates to your credit worthiness on what’s called your ‘credit file’. They are also the ones who calculate your credit score.
Banks and lenders can access this information to, for example, assess your loan application. Yup, that’s why it’s so important!
📈 Why your score might vary
Have you checked your credit score in multiple places and received a different score each time?
Your score can move over time (and often does!) but there’s another explanation to why this might be happening.
Each credit bureau scores differently, according to the information it has on you and its own formula. This means your credit score, and what it means, will vary between them.
🤔 So how do you know if your score is good?
Well, the good news is we’ll tell you what your score means and how lenders see it when you check your score with MONEYME.
But let’s get into the details.
Depending on the credit bureau, credit scores can range from 0-1200.
We get your data from Experian which has a maximum score of 1000, and this is how your score is categorised:
| 800 - 1000 | Excellent |
| 700 - 799 | Very Good |
| 625 - 699 | Good |
| 550 - 624 | Fair |
| 0 - 549 | Room for improvement (below average) |
🤸 How can you take your credit score up a notch?
When it comes to credit scores, one simple principle applies - the higher the score, the healthier your credit file and the more creditworthy you are deemed to be.
Are you disappointed with where your credit score’s at?
Your credit score can improve over time, and if you start making some changes you can see results fairly soon.
Stick with it and track your progress under Score History!
Credit scores are provided by Price Enquiry Pty Limited ACN.