Do you know
your credit
score?

Whether you’re preparing to make a big purchase or simply wanting to have a better hold on your finances, you may have asked yourself, ‘How can I check my credit score for free?’ After all, a credit score is an important aspect of your personal finances and sheds light on your financial opportunities.

So what are credit scores, anyway?

This number, which ranges from 0 to 1,000 or 0 to 1,200, depending on the credit reporting agency, shines a spotlight on your creditworthiness and financial health. And if you want answers to the question, ‘How can I check my credit score for free?’ you probably know that it carries a lot of weight in the world of personal finance.

To be more specific, your credit score reflects your past borrowing and repayment habits, and it’s how you can obtain future credit. When it comes to determining whether to approve your loan or credit card application, lenders often take a peek at your credit score. Higher credit scores increase your chances of getting approved for loans and credit on more favourable repayment schemes.

Another reason people look up ‘how to check my credit score for free’ is interest – an interest rate, to be exact. You can potentially save a significant amount of money over time if you maintain a good credit score because it can help you secure lower interest rates. Conversely, loans for low credit score holders may carry higher interest rates, making borrowing more expensive and burdensome.

It’s also not uncommon for insurance companies to take credit scores into consideration when determining your premiums for auto, home, and other types of insurance. If you have a good credit score, you may be able to score lower monthly premiums, potentially saving you money.

Finally, people asking, ‘Why should I check my credit score for free?’ should know that even landlords, property managers, and potential employers may also check your credit scores. A higher credit score can signal that you can be counted on to make rent payments on time. For employers in certain industries, a good credit score can also signify that you can be relied on to handle finances or sensitive information.

All that said, it’s evident that by understanding your credit score, you’ll be able to navigate the lending landscape with confidence, get better terms, and succeed financially.

Yes, there are ways to establish a good credit score in Australia without a credit card. There are credit builder loans or small loans that you can apply for. By consistently meeting your repayments, you’ll be able to improve your credit score, as positive borrowing behaviours are also recorded in your credit report.

Paying your bills on time – such as your telco or utility bills – may also help establish your creditworthiness. Typically, late payments for bills that are more than $150 and at least 60 days late are recorded as defaults, which negatively impact your credit score.

While rent payments aren’t typically reported to the credit bureaus, there may be rent reporting services available. This means that paying your rent on time may help build your credit score. However, these services may come with fees, terms, and conditions.

Now, the question on your mind might be, ‘If I check my credit score for free, will it impact my credit?’ Financial issues can be a source of anxiety for many people, and nobody wants to do anything to jeopardise their credit.

But you may want to get an idea of your credit score for a variety of reasons. First, if you’re aiming to improve it after a prolonged period of less-than-perfect borrowing behaviour, that baseline number will serve as your starting point. Or, if you’re buying your first home, you may want to know your score ahead of time so you can anticipate possible interest rates.

It’s important to know the difference between a soft credit check and a hard credit check. A soft credit check provides an initial look at your credit report but is not recorded on it. Lenders typically use this to get an overview of your credit history without having to conduct a full examination.

On the other hand, a hard credit check is a complete search of your credit history and appears on your credit report. A hard enquiry is usually conducted when you’re applying for a loan, credit card, or mortgage. If several hard credit checks are conducted in a short period of time, it may imply that you’re relying significantly on credit or that you’re in financial trouble. As such, lenders may see you as more of a risk.

Luckily, checking your own credit score is considered a soft credit check and does not impact your credit score. You can request a credit report for free once every three months from major credit reporting bodies like illion, Equifax, and Experian. With their stored financial data about you, they can generate a credit report and calculate your credit score. But there’s an even simpler answer to ‘How can I check my credit score for free?’

Now, you can get a free, fast, and personalised credit score with MONEYME’s Credit Score tool in the MONEYME mobile app. It will give you access to the same information that banks and lenders use to determine your creditworthiness. As an added bonus, we’ll give you tips and tricks on how to improve your credit score and special offers to boot.

‘What’s the safest way to check my credit score for free,’ you ask? With the MONEYME Credit Score tool, you can get your free credit score check in a matter of minutes. And knowing your score is as simple as downloading the MONEYME app. Then, just enter a few basic details like your name, number, email address, date of birth, address, and optionally, your driver’s licence number, and we’ll do the rest.

In summary, checking your credit score is one way to stay on top of your personal finances, and this has been made easier with the MONEYME Credit Score tool.