Given the current state of the world it might be hard to believe that our friends across the ocean are doing anything better than we are here in Aus (well apart from ‘The Bachelor’ – they have that down to a fine art), but there is at least one major thing that Americans have been doing better than us for quite some time.

Walk up to someone on the street here and ask them what their credit score is, and 7 out of 10 times they won’t be able to tell you[1], whereas an annual credit score knowledge survey in the USA showed that in 2016 over 80% of American consumers knew the basic facts about credit scores[2].

Bottom line, the Yanks are way ahead of us when it comes to credit score awareness and knowledge.

To be fair to us Aussies, the USA positive reporting system has meant that consumers have historically had more control over actions they could undertake to affect their credit scores and reports, however now with Comprehensive Credit Reporting (CCR) being implemented in Australia there’s no excuse for us not to catch up!

Why should we care? We hear you ask, well here are just 4 great reasons you should know and monitor your credit score and reputation:

 

1. It’s out there about you whether you like it or not

If you are over 18 and have ever had a credit product you probably have a credit report with at least one (if not more) of the national CRBs.  If there is information out there about you don’t you want to know what it says and if it’s correct?

 

2. It can affect your ability to get approved for credit products

While your credit score is not the only thing a lender will take into consideration when considering you for a loan or credit card, it is a factor that can be taken into account – so why not be ahead of the game and put your best score forward?

 

3. You can influence it!

Your actions can influence your score, so get informed and find out what you can do to improve it and keep your credit reputation in tact!

 

4. It could get you a better interest rate!

Some lenders have started implementing ‘risk based pricing’ this means that if you have a good credit history and score and are seen as less ‘risky’ you may be offered a better interest rate on loans. (You can see some of these lenders and compare their offers here).

 

So come on Australia, let’s pull our socks up and get smart about our credit score and reputation, knowledge is power when it comes to knowing where you stand financially.  Check your credit score for free with Credit Savvy today!

 

 

[1] http://www.news.com.au/finance/business/banking/aussies-in-the-dark-as-big-changes-loom-for-credit-card-loan-and-mortgage-applications/news-story/92dd5099fa6b913ec80273a88a346a4e

[2] https://www.vantagescore.com/news-story/183/creditscorequiz.org

 

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