With less than 30% of Australians knowing their credit score, it’s clear that it’s a confusing topic for many. In this article, we’re going to break it all down for you.
What’s a credit score?
Your credit score, also known as a credit rating, is a number that lenders use to understand your credit risk. They provide a way for a lender to determine how likely or unlike you are to repay your bills. The higher your credit score the better, but if you have a low credit score you can always improve it. You generally have three of them, each for different reasons – which we will talk about in another article.