Credit Score Check

A credit score check from Equifax is one of the best ways to maintain your credit history and health. In these reports, you’ll find who has checked your credit history and what organisations currently provide you with credit. The report will also cover past credit applications and your repayment history (if provided by your lender). The credit history report is your best tool for uncovering any issues with your credit (ID theft, a privacy breach, bad credit history, etc.).
 
If you are refused credit for any loan application, it is unlikely your lender will confirm as to the reason why. In this situation, it is best to complete a credit score check and see if there is a problem with your credit score rating. If defaults are recorded, you can start to clear these from your credit history. In most instances, a default is caused by missing payments on a loan. These missed payments can be for various reasons; perhaps you are not getting notified of when your repayments are due. Ensure your lender has your most current contact details on their file.
 
There may also be instances where your loan application has been declined because your credit score is too low. While you may have enough money and the means to pay out any loans, some lenders may be unwilling to lend you an amount you desire if you have very little or no existing credit history.
 
If you have a bad credit score, you can take steps to help improve it. These steps may include paying your bills regularly and paying any outstanding loan debts. Many factors go into building your credit history, and with proactive monitoring or professional advice, you can aim to create a positive credit score.

What is a credit score?

A credit score is based on your borrowing and repayment history. If you’ve missed payments, including bills, then you may have a lower credit score than someone who always pays on time. Other factors that count towards your credit rating include how often you have applied for credit. If you have a lot of personal debt or haven’t disclosed an existing loan (including credit cards). This may reduce your ability to secure a loan or line of credit.
 
Lenders (i.e., banks and other financial institutions) will use your credit information,in conjunction with their own lending criteria, to determine if they feel you are a reasonable risk to take. If they feel you are a high-risk customer, they may provide you with a loan that has a higher-than-average interest rate. If you have been refused a loan, it is best to use a credit score checker and uncover why. From that point, you can look to make changes to improve your credit score.

How is credit score calculated?

There is no industry standard for credit scores. The scores provided by Equifax is an Equifax score based on the Equifax Credit Score Model and will differ to that obtained from other credit reporting agencies, such as Experian. A credit reporting agency will calculate your credit score using their own algorithms, methods and scales. At Equifax, we use a scale from 0 to 1200, and the higher your number, the better your credit score. At Equifax, a good credit score is considered to be between 661 to 734, and an excellent score is 853 to 1200.

Many details go into creating your credit score, and you should perform a credit score check regularly. Knowing your credit score can help you determine if applying for credit is worthwhile, as applying for credit through many lenders in a short space of time may lower your credit score. 
 
At all times, you can keep a close watch by regularly completing a credit score check yourself. In our subscription service, we can monitor your credit score and alert you to any changes as they occur.

Some factors that may affect your credit score can include the following:

• Your current and past debt, including any issues you had making regular payments
• Multiple credit applications in a short time frame
• The number and type of credit applications Default judgements or bankruptcy recorded against your name (if applicable)

How to check your credit score?

If you find yourself searching ‘how to check my score’, we’re happy to tell you it’s easy to complete a credit score check through Equifax. You can get a credit report for free at certain times, or if you prefer, you can sign up to one of our credit and identity subscription  services.. 

You should read through this and determine if there are any discrepancies. If you feel something is incorrect, you can contact our team, and we’ll investigate the issue and then provide more details about that particular item.
 

Disclaimer: The information contained in this article is general in nature and does not take into account your personal objectives, financial situation or needs. Therefore, you should consider whether the information is appropriate to your circumstance before acting on it, and where appropriate, seek professional advice from a finance professional such as an adviser.