Having a good credit score is essential for anyone who wants to access financial services. A good credit score is usually considered anything above 670, while a perfect score is the highest score achievable within a credit rating system. The numerical value of this score may vary depending on the credit rating system used, but it is still the goal for those looking for the best of the best scores. For example, a VantageScore 3.0 score of 661 could place you in the good range, while a FICO score of 661 could be considered fair.
Other services, such as credit repair, can help eliminate inaccuracies in your credit report but can cost up to thousands of dollars. FICO competitor VantageScore produces a similar score using data from all three credit reporting agencies. Even the same model could give a different score depending on whether you use data from your Equifax, Experian, or TransUnion credit report. It's important to know where you stand in a credit rating range so that you can make informed guesses about your financial profile.
You can use this personalized information to help focus your efforts as you work toward a better credit score. To achieve a perfect score, it's important to practice good credit habits consistently and for a long time. If you want to have inquiries made about an entity in your credit report, Equifax can investigate and correct any incorrect information to ensure that your credit history remains accurate. Even if you manage to get the highest possible credit score, it's unlikely that you will maintain it month after month.
Since there are four credit reporting agencies in Australia, credit providers also choose the CRA to partner with. You will receive a personalized credit analysis that will tell you exactly how to improve your credit and how long it will take you. Each model works differently, but they all compare the credit decisions summarized in your credit report to behaviors that have historically been linked to the inability to repay loans. Lenders, such as credit card issuers and mortgage providers, can set their own standards for what good credit means when deciding whether to give you credit and at what interest rate. Your Equifax score is displayed as a number and indicates the likelihood that an adverse event will occur in your credit history in the next 12 months. This score can help you understand where you stand in terms of your overall financial health.
