What is a perfect credit score?
Such a common question, what is a perfect credit score.
This seems to be one of the most common questions when clients seeking finance start to make inquiries.
The answer is simple. There is no such thing as a perfect credit score in Australia. Perfect meaning 1200 out of 1200 with Veda Equifax.
A more accurate statement would be some clients have better credit scores than others.
Veda Equifax credit scores.
Veda Equifax have a complex system in Australia which gathers all data supplied and creates a score for lenders to view when reviewing your credit file and finance application.
The score is based between zero and 1200. Reality is that very, very few people exceed 1000. Industry rule of thumb seems to point at a reasonable to good score being above the 700 mark.
The score alone is not used by any lenders as the sole source for approving or declining finance. In fact it is only one of many criteria used when lenders make a decision.
Good credit score and still declined !
And yes you can have a good credit score but still be declined for finance.
Lenders are now placing much more emphasis on reviewing in detail your income, assets and liabilities and capacity to service a loan.
A credit file with defaults or judgments will affect your score greatly.
Additionally a credit file with a lower score and no defaults is better than a credit file with a high score and default data present.
Don’t focus on what is a perfect credit score alone. Ensure you have no default data and especially ensure that your finance application information matches what is on your credit file. Consistency is key.
More info on credit scores
Read this article by news.com.au “credit score news article” for other aspects relating to a perfect credit score.
Need to find out what your Veda credit score is? go to our online access page for same day service in returning your complete credit file assessment and Veda score.