For the first time in Australia, investors have been provided with free access to their credit score via a new online service.
The website GetCreditScore.com.au allows consumers to log on and check their credit rating.
However, investors should be aware that the service can only be accessed once in a 12 month period.
This rating, compiled by credit reporting company Veda, is used by lenders to determine investor’s eligibility for loans and the risks associated with that loan.
The score is between 0 and 1,200, with 1,200 representing that it is “highly unlikely that an adverse event could harm your credit report in the next 12 months”.
Credit scores are calculated on the basis of a consumer’s credit report, which includes overdue debts, credit enquiries, credit limits, monthly repayment history, bankruptcy claims, insolvency claims and court judgements.
From March 2014, changes to credit reporting regulations gave banks and non-bank lenders greater access to clients’ credit histories.
According to GetCreditScore.com.au spokesperson Christopher Zinn, the service would help empower consumers seeking loans or mortgages.
“Credit scores are becoming increasingly important for Australians, yet most people would not know their score,” Mr Zinn said.
“It is time now for consumers to get informed, find out their score and start pushing for a better deal.”
To access their score, investors must provide their name, address, date of birth, email and identification like driver's licences or passport numbers.
Although "credit enquiries" generally impact on a consumer's credit rating, using the new service will have no adverse impact on scores.