Your credit score is like your dating profile…but for lenders.

But instead of reflecting whether you like Friends or The Office more, it tells banks how likely you are to repay them if they lend you money.

It’s usually a number between 0 and 1200 that lenders use to decide if they want to swipe right (lend you money) or left (not lend you money).

Generally, the higher the credit score, the more attractive you are to a bank, and the more likely the bank is to loan you money. The lower the credit score, the tougher it is to access credit. 

How do lenders know my credit score?

When you make an application for finance, banks send that information off to credit reporting bodies (CRBs), like Equifax, Experian or Illion.

These bodies then pull together all your information (including your address and date of birth) into a credit report. Then, they pull out their fancy algorithms to work out your credit score based on a bunch of different factors, like how much money you’ve borrowed before, and whether you make your loan repayments on time.

What does a good credit score look like?

Here's the thing, CRB’s have their own way of categorizing credit scores. So knowing “what’s a good credit score” changes a little depending on who you ask. Here's the breakdown at the three main agencies mentioned above:

Illion

• Low: 1-299
• Room for improvement: 300-499
• Good: 500-699
• Great: 700-799
• Excellent: 800-1000

Experian

• Below average: 0-549
• Fair: 550-624
• Good: 625-699
• Very good: 700-799
• Excellent: 800-1000

Equifax

• Below average: 0-459
• Average: 460-660
• Good: 661-734
• Very good: 735-852
• Excellent: 853-1200

As you can see, the three credit providers are pretty similar... but not the same. So, it can be useful to be aware of the differences. You might have a slightly different score with each!

What is my credit score?

Now you know how important it is, you're probably itching to know what your own credit score is.

The Flux App has a credit score feature where we’ll do the math to work out exactly what your credit score is! We make it easy to see a free credit report using data from Equifax.

If you want to take things to the next level and improve your credit score, we’ll help you out.

For our Flux Pro members, we’ll show you what factors are impacting your credit score - good and bad - and give you some helpful tips to make sure your finances are lookin’ schmick.