Frequently Asked Questions
What is a Credit Score?
A Credit Score is a number that indicates how healthy your Credit Report is. Generally, the higher your score, the better.
Your Credit Score is a quick indication of your 'creditworthiness' and can indicate to a lender how likely you are to pay back the money they lend you.
A Credit Score is calculated using the information on your Credit Report that includes:
- How often you've applied for credit
- What type of credit and the limits you've applied for
- Your repayment history
- If you've had any defaults or judgements in the last 5 years
Your score may include additional information, particularly if you are an existing customer with the lender.
A Credit Score is a good indicator of your credit health, but it may not always indicate that you'll be approved for a loan. Lenders may have additional policies in place that could impact your application.
Learn more about credit scores on the CreditSmart website.
