If you apply for a loan or a credit card, the bank may look at  your credit score to see if you have a history of paying back money on time. This quick explainer from the First Nations Foundation’s Keiena Aspinall-Ivey breaks down what that means and how you can check it yourself. 

What is a credit score?

Your credit score is a number between 0-1000 that is given to you based on your borrowing and repayment history.  

People with a higher credit score are often more likely to get approved for a loan because their report shows they’ve paid back money on time in the past.

In Australia, there are three main credit reporting bodies: Equifax, Illion and Experian. Your credit score may differ between these companies as they each use a slightly different way of scoring people who use credit. 

What details are on my credit report? 

On your credit report, you will see your credit inquiries, which are listed every time you make an application for a loan or finance. Your lending history will also be visible on your report, including any current or closed loans and how often you’ve made repayments back to the loan.  

Tips on how to build and maintain your credit score 

• Review your credit report to ensure that there are no mistakes or inaccuracies – If you find one, you can report it to the agency who created the report. They should do this for free. 
• Make repayments on time.  
• Avoid using fringe credit providers.
• Avoid overdrawing your account.
• When seeking finance, ensure that you meet the lending requirements before submitting an application.
• Limit your applications and inquiries for credit, as this is also recorded on your report. 

Where can I check my credit score? 

As mentioned earlier, there are a few different places you can get a copy of your credit report.

• Equifax 
• Illion
• Experian