If you applied for a home loan in the current financial environment , your lender would probably assess your application in the context of both your credit score and your credit history – on top of your income, assets, liabilities and living expenses. Your credit score is a number calculated by a credit-reporting agency, which compares you to other borrowers and categorises your credit risk profile. The higher your score, the lower your risk: i.e. you’re ‘less likely’ to record a default or bankruptcy on your credit file over the next 12 months. What’s changed? On 1 July 2018, Australia moved to a positive credit reporting system. This brings us in line with other OECD countries, and means credit providers are obliged to provide credit-reporting
