In Australia, your credit score will be a number between 0 to 1200. A good credit score is between 622 and 725 a very good score is between 726 and 832 and an excellent score falls between 833 and 1200.
Credit scoring is widely accepted as the primary method of assessing creditworthiness. Credit scoring is used not only to determine whether credit should be approved to an applicant, but for credit scoring in the setting of credit limits on credit or store modelling such as collections scoring, and also in the pre-approval of additional credit to a company’s existing client base.
Although logistic probability modelling is still the most popular means by which to develop scorecards, various other methods offer powerful alternatives.
Prior to March 12, 2014 the main provider of credit file data, provided only a negative credit reporting system containing information on applications for credit and adverse listings indicating a default under a credit contract. Veda was acquired by Equifax in Feb 2016, making Equifax the largest credit agency in Australia.
In Australia credit scoring is done as a blacklist. Consumers who did not pay bills end up on the blacklists that are held by different credits. Having an entry on the black list may result in the denial of contracts. Certain enterprises including telecom carriers use the list on a regular basis. Banks also use these lists, but rather inquire about security and income when considering loans. Beside these lists, several agencies and credit bureaus provide credit scoring of consumers.
According to the Australian Data Protection Act, consumers must opt-in for the use of their private data for any purpose. Consumers can also withhold permission to use the data later, making illegal any further distribution or use of the collected data.[5] Consumers also have the right to receive a free copy of all data held by credit bureaus once a year.[6] Wrong or unlawfully collected data must be deleted or corrected.
HOW IT HELP FOR the Loan
One of the India’s leading credit information companies, incorporated in 2000, analyses and delivers a three-digit score, between 300 and 900, based on your credit history. The higher the credit score is, the better are the chances of personal loan approval. A score of 750 and above is what is generally considered the ideal CIBIL score for loan approval.
The amount of loan you can get rests on CIBIL score. A high score entails a higher amount and vice-versa. It also leads to minimum documentation and ensures a hassle-free borrowing exercise.
