What is an Equifax score?

Any general questions you might have in regards to loans and finance.
Jonathan66
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Joined: Fri Feb 15, 2019 8:38 pm

What is an Equifax score?

Postby Jonathan66 » Fri Feb 15, 2019 8:40 pm

Hey there!

I’m currently sorting my finance out in order to purchase a new house and I stumbled across the words “Equifax Score”! I was wondering if you could help explain to me what it is and why it’s so important!

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Otto Dargan
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Re: What is an Equifax score?

Postby Otto Dargan » Fri Feb 15, 2019 8:47 pm

Hi Jonathan,

Welcome to the forums.

An Equifax Score is a score which compares you as a borrower to the rest of the Australian population.

It can be found on your credit file that’s held by Equifax (formerly known as Veda Advantage).

It is one of the many factors lenders consider when they assess your mortgage application.

As part of your home loan application, we obtain a copy of your credit file from Equifax.

The score provides us with a good indication of your strength as a borrower.

Please call us on 1300 889 743 or fill in our free assessment form so that one of our expert mortgage brokers can assist you through the home loan process.

Cheers,
Otto
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts

Jonathan66
Posts: 4
Joined: Fri Feb 15, 2019 8:38 pm

Re: What is an Equifax score?

Postby Jonathan66 » Fri Feb 15, 2019 8:52 pm

Ah! That explains it. Thanks for the information. Can you also explain to me what factors Equifax consider while calculating your score?

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Otto Dargan
Mortgage Specialist
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Joined: Sat Sep 06, 2008 5:55 pm
Location: Sydney, Australia
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Re: What is an Equifax score?

Postby Otto Dargan » Fri Feb 15, 2019 9:07 pm

Hey Jonathan,

At the most basic level, Equifax Score is ultimately a score of all the details of your credit file. It consists of the following details:

Basic personal information
This includes your full name, date of birth, gender, address, previous address, drivers licence number, employer and previous employer.

If you’re a director or proprietor you should check both the individuals and commercial sections of your credit file.

The type of credit provider you applied with
There may be different levels of acceptability with each lender.

For example, a credit union may have a higher level of risk than a major bank or lender.

The nature of the credit or loan
Home loans and HELP Debt are seen as a lower risk than car finance or payday lending.

Credit enquiries
Loans that you have applied for in the last five years are listed as credit enquiries.

Defaults
Loans or accounts where you’re more than 60 days overdue are listed as defaults.

Court writs
A court writ is a formal written document that is issued by the court, usually because someone has lodged a court case against you.

Court judgments
Judgments are listed when you’re unable to come to a suitable agreement with the creditor

Bankruptcy history (including Part IX history)
Bankruptcy or entering into a Part 9 agreement will essentially bring your score to zero.


Cheers,
Otto
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts

Jonathan66
Posts: 4
Joined: Fri Feb 15, 2019 8:38 pm

Re: What is an Equifax score?

Postby Jonathan66 » Fri Feb 15, 2019 9:27 pm

Oh! Okay. Seems fair enough. I feel like my score would be pretty good. But just to be on top of everything, what’s a good Equifax Score?

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Otto Dargan
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Joined: Sat Sep 06, 2008 5:55 pm
Location: Sydney, Australia
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Re: What is an Equifax score?

Postby Otto Dargan » Fri Feb 15, 2019 9:30 pm

Hey Jonathan,

An Equifax score is graded:

- Excellent: Any score above 700.
- Good: Any score from 600 to 700.
- Average: 550 is the average score.
- Bad: Any score from 400 to 500.
- Very bad: Any score below 400.

The average score for all Australians who are credit active is 550, however, your score can range from anywhere between -200 to 1,200.
Having a score of 550 would mean that you have a 1 in 12 chance of having a default lodged on your credit file in the next 12 months, whereas a score of 200 would mean you have a 1 in 2 chance.

It’s extremely rare to see scores higher than 900 or lower than 200.

Please call us on 1300 889 743 or fill in our free assessment form and one of our mortgage brokers will let you know if you can qualify for a home loan.

Cheers,
Otto
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts

Jonathan66
Posts: 4
Joined: Fri Feb 15, 2019 8:38 pm

Re: What is an Equifax score?

Postby Jonathan66 » Fri Feb 15, 2019 9:33 pm

Thanks for all the help. I will contact you very soon.


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