Therefore, precisely what is bad credit, and exactly how would you have it? Bad credit is probably frequently caused by defaulting on re re re payments or payments that are even making. This really is then recorded in your credit history as negative information, which often brings your credit rating down. It is maybe maybe not simply present defaults which are taken into consideration. Some credit that is negative can stick to your report for as much as seven years. This means that a blip from years back could nevertheless be inside your capability to access that loan!
In Australia, you can find four credit rating agencies. These are Experian, Illion, Equifax and Tasmanian Collection Provider. Individuals residing in Tasmania should seek advice from the second two, while those somewhere else within the nation should utilize the very first three.
Let’s have a look at the two E’s, Experian and Equifax. Because of the previous, your credit rating exists for a scale between 0 and 1,000, whilst the latter rises to 1,200. Here’s a breakdown of credit history bands on these spectrums.