Understanding your credit score

Your credit score

Your credit rating is used by a wide variety of organisations to help them understand your financial situation history.

Whilst the format of the credit report is slightly different across the three different bureaus, your credit report generally includes:

1. Your credit score, which is a number between 0 and 1,000
2. Details of the credit you have (loans, credit cards), including whether you have been paying them on time
3. Details of bill payments, for example for your electricity bill
4. Applications for credit
5. Any defaults (e.g. where you haven't paid your loans) or court judgements

How it is used

You won't be surprised to hear that financial institutions such as banks and finance companies will ask for your permission to obtain a credit check as part of their customer due diligence processes.

But, did you know that:

1. Some employers also ask for permission to do this, usually because of the nature of the role that you're applying for (and especially if the role relates to money or finance).
2. Utiliity and phone providers may also ask permission to do this too when you're setting up a new plan, such as a mobile phone contract

Accessing your credit report:

You can request a copy of your credit report through the links below:

• Illion
• Equifax
• Centrix

At Money Sweetspot

As part of our loan application at Money Sweetspot, you provide us with permission to perform a Credit Check on you. We use Illion in the loan application process and it helps us in our decision making process about your loan.

They have lots of information on their site, including:

1. What is a credit score
2. Understanding your credit score
3. What you can do to get your score higher
4. How to report something that is wrong.

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Sweetspot Points

Paying your loan on time and avoiding new debt can have a positive impact on your credit score. This is why we have built these things in to how you can earn Sweetspot points.

We look at your credit report every month throughout your loan with us to look at the level of debt you have. This is because you earn Money Sweetspot points each month by avoiding new debt. You can redeem these rewards through your customer portal.

A final note:

It can take time for your credit score to reflect the good things you're doing to pay off your debt. Stick with it as the baby steps each month will make a difference. Remember, your value (to your family and your community) is way more than the cash in your pocket!

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This was originally posted as an education article on the Money Sweetspot customer portal. If you read this as one of our customers, you would've earned some money off your loan! Do the mahi, get the treats. Find out more.

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