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How to Check Your Credit Rating

How to Check Your Credit Rating

If you are planning to take out a loan or credit card, your first order of business should be figuring out how to check your credit rating. This metric is what credit providers pay the most attention to when assessing your application for their products and services. It is calculated based on the information on your credit report – a document that contains an extensive record of your credit history. The higher your credit rating, the better chances you have at securing financing.

No idea how to check your credit rating? Let us help you.

GetCreditScore can help you obtain your credit score in a matter of minutes. You can use the information we provide to evaluate your eligibility for credit. Moreover, our members get exclusive offers on premium financial products and services, including personal loans, car loans, home loans, business loans, credit cards, and insurance policies.

GetCreditScore implements modern encryption and identity verification technology to protect your data. Your use of our services does not impact your credit rating in any way since it is not a hard enquiry. So take the initial step in learning how to check your credit rating and sign up now!

What is credit rating and what is its purpose?

Your credit rating is a numerical value that essentially reflects your reputation as a borrower. It is one of the first things creditors consider when you apply for a loan or credit card. They may use it to gauge your capacity to repay the funds they may lend you.

A high credit score indicates to lenders that you are a low-risk borrower and increases your chances of approval. It also gives you leverage when negotiating the credit terms, entitling you to lower interest rates.

If you have a low credit rating, don’t get discouraged yet; you may still find alternative lenders who specialise in bad credit loans in Australia. Moreover, there are numerous measures you can take to see your credit score improve over time.

How is credit rating calculated?

Equifax is one of the leading credit reporting bodies in Australia. The company uses proprietary algorithms to generate your credit rating based on the data in your credit report. This data includes your credit account history and repayment history.

If you have ever applied for a loan or credit card, we can request an overview of your credit report for you. You can then check the file to see if you are eligible to apply for credit. You can use the information it contains to determine what measures you need to take to improve your rating.

It is also a good practice to monitor your credit report to make sure everything is in order. You may think you have a clean record, but there might be errors in your file – perhaps an inaccurate debt entry – impacting your rating. These mistakes happen more often than you think. Sign up now to get started on how to check your credit rating.

The implementation of the Comprehensive Credit Reporting (CCR) system gives you more power to influence your credit rating. This enhanced system mandates the addition of positive credit information to your credit report, giving credit providers a clearer picture of your financial standing. You should see significant improvements in your rating if you remain diligent about meeting your credit obligations.

Equifax calculates credit ratings on a scale and classifies consumers as follows (these score ranges are approximate as they are subject to change):

Excellent (≈841–1,200): This rating range is the epitome of a good credit score. The people in this group are among the most influential consumers in Australia. They are highly unlikely to experience an adverse financial event – such as a default or bankruptcy – over the next year. If your credit rating is in this range, credit providers would generally be happy to offer you competitive terms and rates on their products and services.

Very Good (≈756–840): The people who have credit ratings in this range are twice as likely to maintain a clean credit report over the next year compared to the average consumer. You should have no trouble negotiating favourable terms and rates on credit if your rating is in this range.

Good (≈666–755): Those who have credit scores in this range are more likely to maintain a clean credit report over the next year than the average consumer. A credit score in this range indicates to lenders that you have done well to steer clear of major financial setbacks.

Average (≈506–665): The people who have credit ratings in this range are likely to experience an adverse financial event over the next year. That means lenders may view you as a relatively risky borrower, but you should observe improvements in your credit rating as soon as you tighten up your credit behaviour.

Below Average (≈0–505): Those who have credit scores in this range are the most likely to experience an adverse financial event over the next year. Your credit report probably has a string of negative data that caused your credit rating to decline. You should work on clearing defaults and making timely re-payments to improve your rating. Finding out how to check your credit rating is a crucial step towards bettering your financial situation, and we can help you with a convenient online credit check.