How to Check Your Credit Rating in Australia: All You Need to Know

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Credit ratings. They are crucial when applying for home loans or for applying for business credit to fund your Australian business, even as an expat. Credit ratings can either stand in the way of being approved for a loan or credit for business in Australia, or they can help you sail through the process for credit applications.

Being an Australian expat, it’s also critical that you understand how to check your credit rating in Australia as, although your credit score might not be acknowledged in every single country outside of Australia, where you might reside, you will need to manage your money and keep track of your debts for when you return.

If you’re not unsure of the best way to do this, learn how to check your credit rating or score in Australia in this article.

How to Check your Credit Rating in Australia: All You Need to Know

Why is knowing how to check your credit rating in Australia important?

Knowing how to check your credit rating or score in Australia is crucial because it can affect whether you’re approved for a loan. Since many financial institutions will automatically go to your credit rating, knowing whether your financial situation is favourable can help you recognise whether you need to improve your credit score before applying for any loans.

The other thing that your credit rating can affect is your interest rate. Knowing how to check your credit rating in Australia is critical because this will let you know if you’re in any position to consider multiple options for your loan, get a better deal, and find options that offer lower interest rates based on your credit reputation. 

For example, if you need a personal loan of $30,000, agree to pay it back over five years, and have an excellent credit rating, the loan might cost you approximately $34,000 with the agreed 4.99% interest rate and fees.

How to check your credit rating in Australia as a resident?

There are a few simple steps that you can follow to check your credit rating in Australia. If you need to learn how to check your credit rating in Australia with an Australian credit rating provider, check the three steps below.

1. Have your ID ready

You’ll begin by verifying your identity when you access an online provider who offers a credit rating review service, so make sure you have your identification documents ready, such as the number of your driver licence.

2. Provide the online provider with more details

Additional details will be required by the credit rating provider, so provide them with information such as your date of birth, the address of your residence, and your name.

3. Wait to receive your credit score

The credit rating provider will produce your credit score; all you need to do is wait for a couple of minutes once you’ve entered your details.

How to Check your Credit Rating in Australia All You Need to Know

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How to check your credit rating in Australia for home loans?

If you’re an Australian expat returning to Australia, you might want to purchase a property when you return. One of the first things that are required before you start the process is knowing how to check your credit rating in Australia for a home loan approval

The process of how to check your credit rating in Australia is the same as the steps outlined above. Start the process by choosing a credit reporting body and identifying yourself. Three of the main credit reporting providers located in Australia are Illion, Equifax, and Experian. You will need to provide identification documents such as your Medicare card or driving licence.

Then, follow this up by giving them a few extra details, such as your address and name, and make your request for a credit report from one of the above credit report providers.

What are the minimum credit scores for approval for different loan types?

Now that you know how to check your credit rating in Australia for a loan, another important thing to recognise is the minimum credit score that you require to get approved for one. Keep the following credit scores in mind when applying for a loan.

Minimum Required Credit Score

    Loan Type

Lowest Required Down Payment

580

FHA Loan

    3.5%

620

Standard/Conventional Loan

    3%

640

USDA Loan

    0%

580-620

VA Loan

    0%

700-740

Jumbo Loan

    10-20%

For instance, if you wanted to apply for a federal housing administration loan, you’d normally have to have a minimum credit score of 580. In some situations, with some lenders, if you don’t meet this credit rating, you can still be approved for this loan type if you can afford a down payment of 10%

What’s also important when thinking about how to check your credit rating is that if you apply and are approved for a mortgage of $200,000, you could actually save more than $200 each month with an excellent credit rating; better deals all depends on your credit reputation.

How to build your credit rating abroad and retain your credit score in Australia

However, if you are an Australian expat living abroad, these circumstances change. Even though you will be expected to build a new credit score in the country in which you reside, you might also want to protect your existing credit rating back home. To know how to retain the one you already have, follow these tips.

How to check your credit rating in Australia and prevent it from being removed

Try to retain a couple of accounts in Australia to prevent your credit history from being removed completely. This way, if you choose to come back to Australia, you’ll still retain at least some reports for your credit history.

Remember that your overdue debts still remain

Your debts can’t be avoided just by becoming an expat, and since a failure to keep up repayments can lead to a poor credit score, always try to make your repayments regularly. Lenders can still try to reclaim what you owe them, even if you move abroad.

How to Check your Credit Rating in Australia All You Need to Know

Get a free Australian mortgage assessment today.

Apply online to get a free recommendation with real rates and repayments.

Checking for free: How to check your credit rating in Australia without paying?

If you want to know how to check your credit rating in Australia, and how to check credit score for free, you must meet two requirements: 

  • In a situation where a lender has refused credit or grant your application for loans over the previous 90 days
  • In a circumstance where your credit-related personal information or personal details have been updated

However, the payment might be required if you need to get your hands on a credit score report earlier than ten days.

When you get a free credit score, remember to ensure that all the details are accurate, correct, and up to date. This step is a crucial part of the process of checking your credit rating, helping you to avoid falling victim to identity theft fraudsters and having false debts reflected on your credit rating.

The main reason you might want to check your credit rating and credit health this way is that although online providers do provide free credit reports, you might be in for a waiting period of 10 days if you choose credit reporting bodies, or credit reporting agencies like Illion, Experian or Equifax Inc.

Which rating is classed as an exceptional credit score?

Part of knowing how to check your credit rating in Australia is understanding what counts as an exceptional credit score, which is a score over 800, and what credit scores are “not so good”, which are lower scores than 500. Scores are usually out of 1000, with 1000 being the best score.

It’s important to know that each lender will have slightly different rankings for these scores. For instance, for some lenders, a bad credit rating is a lower score than 625 out of 1000, and for others, this can be as low as 500.

An excellent credit rating, for some lenders, is a credit score calculated as higher than 800, which increases to 841 for certain lenders.

How to check your credit rating: Which factors can influence your rating?

What’s also important if you’re wondering how to check your credit rating is acknowledging that many key contributing factors can influence your credit rating, such as making regular repayments for mortgages, credit cards, personal loans, and home loans, while failure to make regular payments will reflect in your credit rating.

As well as these three types of loans, try to ensure that you pay all utility bills in a timely manner, as this will ensure you avoid defaulting on the payment and mitigate the chances of being referred to a credit bureau.

How to check your credit rating in Australia: What to keep in mind

When you check your credit rating, always remember that a good credit score can save you money on your monthly mortgage or home loan repayments. 

Keep in mind that regular repayments, a good repayment history can stand you in good stead with credit providers and that before you apply for a home loan, your credit rating should be very good or excellent.

The best place to find out about home loans, how to check your credit score and mortgage or financial information is on odinmortgage.com, so explore and discover the critical information you need right here!

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