Many Australians don’t think their credit score is all that important, but it is worth considering as it is much more than a number. It can determine if you can obtain loans, rent an apartment, or even get employed. Therefore, the very first thing you need to do is know your credit score.
The positive aspect, however, is that if you are on the lookout for a free credit report, it can be obtained easily in Australia, and there will be no cost. If you want to know how to obtain your complimentary credit report and what it involves, this site is right for you. Now, I will outline the easy, straightforward steps involved in finding out about your finances without paying a cent.
How To Get Your Free Credit Score in Australia
Receiving a complimentary credit report is less challenging than many may imagine. The first step that one should take is to look for trustworthy websites that deal with credit scores. Most offer free services once a year.
You will have to go through a verification process, so there are some confidential details you will be asked about, such as your full name, current postal address and date of birth, among other things. You should not be concerned; this information is utilized to prevent fraudulent activities.
As soon as you complete the registration process, you can view an instant report containing information on the score you received and the reasons for obtaining that particular score. It is a good thing because it empowers a person to make better choices in terms of their finances.
Always remember to check the last time you saw your score. Make it a habit to check your score regularly to know if any changes have been made or if there is any erroneous information that may impact your chances of qualifying for a loan or a credit card in the future.
More: What to Know About Your Credit Card Limit
Where to order your free credit score
If you want to look at your credit score for free, plenty of trustworthy options are available. Websites like Credit Karma and Experian have been developed so that there are no hidden or unexpected costs or fees. You simply create your account, and that happens when there are no costs or documents to submit.
It is worth noting that these companies normally ask for a few details about you when signing up, and it might seem like a complicated task upfront, but it actually takes a couple of minutes, and your information will be safely stored.
Some people opt for government-backed schemes, which companies like Equifax, million or numerous others offer. They issue a free report each year that helps you track where your funds are and what condition you are financially in.
However, mobile applications should not be overlooked either. This is mainly because many apps have tools that let you check and report your credit score via your smartphone. This will allow you to monitor any changes in your credit score and adjust as needed.
Related: Credit Card Companies In Australia
Getting your credit score for free through your bank
Many Australian banks are now providing customers the option of accessing their credit scores for free. This is an incredible bonus, especially when you want to optimize your financial position regarding the cost of debt.
To do this, you must access your online banking account and navigate to your account’s sections that may focus on welfare or financial resources. Quite often, there is an option citing credit report scores among those available on the main page.
If you cannot locate it, do not be afraid to try customer support. They are quite friendly and should be able to help you as best as possible.
Keep in mind that although this facility is handy, the scores given might differ slightly from those given by other credit reporting agencies because they are calculated differently. Even so, having this information can make applying for loans and credit a much more skilled endeavor in the future.
More: How to Improve Your Credit Score
Credit score ranges
Knowing the range of credit scores is important to protect one’s financial status. Scores will average at a ranging of 300 to 850. This means that the higher a person is in this score range, the better their chances of getting a positive thesis from a lender.
Scores within the range of 300 to 579 are classified as poor. This can affect your credit options or raise your loan interest rates. 580 to 669 – is the average score. Such a score suggests that you can avail yourself of some credit products at an extra cost.
A fair credit rating falls between 670 and 739. If a borrower has this rating, lenders are assured that the borrower’s chances of defaulting on a loan are minimal. In this case, lenders will offer favorable conditions when granting loans or credit cards.
Let’s say you are in the excellent category and score higher than 740; well done! That is the indication of a low-risk applicant. Because of your reputable credit score, there will be a bidding war among lenders for you to borrow from them.
Thus, knowing where within these scores you lie can aid you in making responsible borrowing and other financial-related decisions. Knowing how to get your credit score for free gives you confidence today and in the long run, as it lets you plan how to spend.
