Your credit score is an important tool that lenders review to determine your borrowing capacity and your ability to make repayments on debts. As personal data breaches and hacking become more prevalent, should you be locking your credit report as a means of protection against identity theft and fraud?
The recent Optus hack was a blunt reminder that your personal information is constantly at risk of exposure in the digital age. Optus’ customer network comprises almost 10 million Australians. That’s 40 per cent of the population.
In response to the cyberattack Optus offered the “most affected current and former customers”, whose information was compromised, a 12-month Equifax Protect package at no cost. Equifax Protect is a credit monitoring and identity protection service that can help to reduce the risk of identity theft.
Of course, anyone can pay for this service, but what other options are there to protect your identity?
What is a credit score?
Your credit score is a figure that indicates how reliable you are as a borrower. Banks and lenders use your credit scores when deciding whether or not to approve your loan application.
There are three primary credit reporting bureaus keeping credit scores in Australia - Equifax, Expirian and illion.
While credit scores and the way they’re ranked may differ slightly between the various credit reporting agencies, the general idea is that credit scores reside within five ranges: below average; fair; good; very good; and excellent.
The credit score scale above is for Equifax.
There are no costs associated with obtaining your credit scores and an inquiry won’t affect your score.
Your credit scores cannot be improved overnight - you need to work to improve them. RateCity can provide up-to-date information and smart tips to help with this. If you haven’t already, the first step is to check your credit scores.
