What is a credit score and how do I find mine?

Your credit score is a number between 300 and 850 that shows your creditworthiness. The higher the score, the more favourable a financier will look on you application for any type of finance.

The factors that make up your credit score include your repayment history on current and previous loans, the types of loans you’ve had or have, the age of your credit file and your total outstanding debt.

Your credit score forms part of your overall credit report, which also lists any current finance you have as well as repayment history. It also includes your personal details, like current and previous addresses and work history.

You can access a free copy of your credit report once a year through Equifax. It is important if you intend on applying for finance that you know what is on your credit report.

It is also important to keep track of your credit report periodically to ensure nothing has been listed on there in error and that you have not been the victim of identity fraud. If you think something has been listed on your credit file in error or you may be the victim of identity fraud, contact Equifax as soon as possible.

What affects a credit score?

Applying for any type of finance as well as utility accounts such as a phone contract or electricity account may affect your credit score. Using services such as Zip Pay or Afterpay can also add enquiries to your credit report and affect your credit score. Any loans or credit cards you have with financiers will generally be listed on your credit report along with your repayment history.

Will applying for finance through Loans For U affect my credit score?

When you use our instant online quote system or submit an application through our website, it does not affect your credit score. With your consent, we are then able to access your credit report and see your credit score without putting an enquiry on your file, so your credit report is safe.

The only time an enquiry will be put on your credit report which may or may not affect your credit score, is when we forward your application to a specific financier for their consideration. They will put an enquiry on your credit report when they make an assessment on your loan application.

This is the same process for all financiers and credit providers. So if you choose to go directly to multiple financiers and make an application for finance, be prepared to see multiple enquiries appear on your credit report. This can impact your ability to be approved for finance as financiers get uneasy about seeing a number of enquiries on a credit report within a short space of time.

How can I shop around for the best finance deals?

So that begs the question – how can you shop around for the best finance deals while protecting your credit file? Easy, use a finance broker like Loans For U. We deal directly with over 40 of Australia’s leading bank and non-bank financiers and have access to hundreds of products. We can compare them on your behalf to find you the best finance deal. This saves you time and money, but mostly, it can help you protect your credit file from unnecessary enquiries which may impact your ability to be approved for finance.

What are clients saying about Loans For U?

Don’t just take our word for it, see what our clients are saying online about us!

So if you’re thinking about applying for finance, whether you’re looking to finance a carboatjet skimotorbikecaravan or recreational vehicle, speak to the friendly team at Loans For U today on 1800 538 287 or get your instant online quote now. Best of all, it’s obligation-free, so if you’re not completely happy with the finance options you receive, you don’t have to proceed.