So, you’ve got your score.
You may be pleased, you may be a little underwhelmed. You may wonder why it isn’t higher but there is another thing you need to bear in mind. It’s all relative.
Looking at the average score by age range is a perfect example. Whilst you may be 27 years old and nonplussed by your score of 725, this would actually put you over 100 points ahead of the average for your age range!
So, let’s look at the average credit scores across the Credit Savvy base by age range:
18-24 years old – 628
25-34 years old – 622
35-44 years old – 638
45-54 years old – 657
55 years old and over – 736
The obvious pattern is that the average score increases with age, seeing a big jump in the over 55 bracket. A lot of this has to do with the length of credit history, basically the amount of time that people have had to demonstrate their credit worthiness.
The good news is that with Comprehensive Credit Reporting (CCR), which is in the process of being implemented by the major credit providers, it will soon be easier to demonstrate your credit worthiness in a shorter space of time through a good repayment history.
Of course, when it comes to applications, a lender may use more than just your score but knowing where you stand and doing your research beforehand can be a good approach.
Plus, you can always check where you stand on Credit Savvy in relation to your age range, postcode, state and indeed the whole of Australia in our See how you rank section. Check it out now or if you haven’t got an account, sign up for free today.
This article was originally published on Credit Savvy