A credit check, also known as ‘credit history check’ or ‘credit reference check’ is a scoring system that lenders use to assess and determine the level of risk a borrower may have.
A credit check is necessary when applying for the following:
- Home loan
- Personal loan
- Credit card
- Mobile phone plan
A high credit score (for example over 500) may require you to have additional documentation during the application process, but a broker can help you determine this as credit scores vary considerably depending on individual circumstances.
Credit scores are increased when consumers default in payments, are rejected from a number of applications, or fail to comply with a financial arrangement.
A bad credit score is not permanent.
You won’t suffer forever for a few financial mistakes. Getting your credit score back into good health can be done by:
- Better budgeting
- Asking for extensions before defaults
- Consolidating debts (link to page)
For a confidential discussion about debt consolidation, or the health of your credit history, contact our team of experienced brokers today on 1300 652 842.