Credit scores: What they are and where to check yours (free)

Current vehicle close to giving up the ghost? Newer model caught your eye? Or maybe you’ve decided that you only live once and it’s time you finally got behind the wheel of your dream set of wheels.

Whatever reason you’re thinking about getting yourself a new car, it’s a really exciting process and one can easily get caught up in the moment. Which is all well and good if all your finances are in order and you know exactly where your credit score is sitting.

If not, though, you can open yourself up to some pretty hard shocks along the way. A poor credit score can result in either limited packages available to you or being downright denied approval for financing altogether. But we’re getting a little ahead of ourselves; let’s do a quick refresher on what credit scores are first.

What is a credit score and how is it used?

For the uninitiated, a credit score (also known as a credit rating) is a number between 0-1000 (Experian, illion) or 0-1200 (Equifax). This number is calculated using information that’s found in your credit report, which includes (but isn’t limited to):

• Applications for credit cards, loans and other accounts that require credit checks
• Repayment history over the last 2 years (whether you’ve made all repayments on time)
• Defaults (if any) over the last 5 years
• Insolvency information such as bankruptcy

Lenders use your credit score to determine which of their packages can be available to you and if they will approve or reject your loan application. The higher your score, the higher chance you’ll be approved and the more negotiating power you have to get a better deal.

Where can I check my credit score online?

There are several different websites that offer free credit score checks, where they don’t actually impact your score at all doing so. Two of the leaders in the market are ClearScore and Credit Simple, each taking just a couple of minutes and providing a variety of additional features like tips and tools to manage your finances better.

You are also eligible to request a copy of your credit report from Experian, Equifax or illion free of charge every three months. This is always a good idea to do if you’re planning on applying for finance because if there are any errors on it, you can have them fixed which improves your score prior to application.

We’re here to find you the perfect car financing package

Over the years, we’ve worked with Australians with all kinds of credit scores to secure car financing. We’ve got a huge pool of lenders at our fingertips, so no matter where yours is sitting currently, we’re here to help find you a financing package that matches your particular circumstances perfectly.

Discover how low your monthly repayments could be using our handy financing calculator, and if you’re impressed with the results (hint: you absolutely will be) you can apply online in just 5 minutes!

Got a question or need a hand working through the application process? We’re always happy to help. Chat with someone from the Stratton Finance team on 1300 787 288 or message us online and we’ll make sure to get back to you as soon as possible.