You can check your credit health through  Equifax. When you check your credit report, you’ll find out your current credit score, which can indicate whether you are likely to be able to repay future loans. When creating your credit report, several factors are taken into account, including how many loans and credit cards you currently have in your name.
 
If you’ve recently had some problems with your credit, such as a default for non-payment, you can monitor your credit history. After your score returns to its previous level, you can confidently apply for a loan or credit card.

How to check your credit score?

You can check your credit rating and credit report for free, once every 3 months, at Equifax. 
Your credit report will be made available to you after you complete the registration and identification process. In our credit report, you’ll find all your details which will include any dealings you might have had with credit lenders. It will also include your credit rating,  
which is a snapshot of your current credit risk status. A credit reporting agency will use many attributes to determine your credit score. Lenders offering  loans may access this report and decide if you’re a suitable applicant. To request a free credit report, click here .
 

What does a credit score say about you?

The data in your credit report can provide information to lenders and give them an idea of your ability to repay a loan. Lenders prefer to limit their risk, and limiting their services to people proven to be financially stable is often preferable. When you check your credit score, it’ll show all your past dealings with borrowing money. All information included in your credit report will stay there for at least 5 years, depending on the type of credit information (except information related to financial hardship which only remains for a  year). If you’ve had a bad credit history, you can turn this around by making changes to improve your score. 
 

How to increase / improve your credit score?

If you complete a check of your credit score and find out that it is lower than you’d like, you can work on improving it. When you need money, a low-interest loan is the best way to get it, but lenders prefer to deal with individuals  who have a high credit rating.  

Building a good credit history is a way to ensure you have plenty of options when you need financial support. A good credit rating is often awarded to people who demonstrate positive financial traits. The first stage of improving your credit score is to eliminate any outstanding debt. Have a look through your credit report and see if there are any loans or credit cards that you no longer need or you can pay off earnestly. Eliminating debt or potential debt (e.g. credit cards) will mean that lenders may increase the amount they are willing to lend  as there is less strain on your finances. You can lower your limits for any existing credit cards, but it is best to have them paid off and closed if you no longer need them. Banks and other financial institutions prefer to lend money to people with less debts.
 
If you have any remaining loans, ensure payments for them are all up to date. If you fall behind on the repayments, it may be noted on your credit report, which can in turn affect your credit rating. 
 
Having a good savings history can make you more appealing to a lender as it shows you have good financial discipline in place. In addition to your savings, you are also developing a good relationship with your current bank. Several factors go into producing your credit report, but making positive changes is the easiest way to improve your credit score.
 
When you’re building your credit rating, you should check your credit report regularly, as it can show you if there are any changes (positive or negative) to your credit health. At Equifax, we also offer a subscription service that will automatically notify you of any changes to your credit file. These changes will include when a lender accesses your report and when adjustments occur.
 
As part of our subscription service, we can also monitor the dark web to protect you against identity theft. Identity theft in Australia is common. In most situations, you only know about identity theft after an unauthorised loan has been opened in your name. At Equifax, our subscription service can also include Identity Guard Insurance^ to help protect you against losses caused by identity theft.
 

^ Terms, conditions, exclusions and limitations apply. Click here to view the Identity Guard Insurance Policy Information Booklet.
 

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.