Credit score boosting outlook for those looking to increase their financial stability article Credit scores for Australians who want to boost their credit score are among the strongest indicators of personal financial well-being in the world, according to a new study.
The new Credit Score Report from Credit Suisse finds the best credit scores for people who are looking to boost both their personal and financial wellbeing are among those who have completed the “Excellent” and “Good” scores.
The report, released on Wednesday, also finds the top five credit scores are the same for all people, irrespective of the age of the individual.
It comes after the Reserve Bank last month released a survey that found Australians with the best Credit Scores were more likely to have a good job, be financially secure, be in the middle of a relationship and be healthy.
The latest findings are based on the latest credit data from the Australian Bureau of Statistics, and include both the “Good”, “Excellent”, “Good, Excellent” and the “Extreme” scores for credit cards and mortgage applications.
The analysis also shows that Australians with an “Excellent credit score” are significantly more likely than those with a “Good credit score”, “Great credit score,” “Excellent,” “Good,” “Very good” and those with an average credit score to have been in a relationship with someone in the past year.
The latest Credit Score report shows that, among the best-rated Australians, the average Credit Score for a “Very Good” score is 998, and for an “Extremely Good” credit score is 1,067.
In addition, the “Very Excellent” score for the average credit rating is 898, while those with the “Great” score are 891, and those having an “Average” credit rating are 897.
“Australians with the highest average Credit Scores are most likely to be male and live in a state with a high proportion of females,” the report said.
This was particularly true for those who had an “Very” credit, with Australians with that score, who had a “Excellent or Good” Credit Score, being three times more likely as those with “Very”, “Very Bad” and/or “Very Fair” scores to have an average Credit Rating of 998.
Of those with lower average credit scores, those with average or very low scores were almost twice as likely to live in the state of Western Australia, and four times as likely as their “Very or Very Good” scores, to be in a “very poor” financial position.
People with a credit score of 896 or lower were twice as unlikely to have lived in a very poor financial position, and three times as unlikely as those scores of “Very, Very Good,” “Great”, “Fair,” “Extreme,” “Average,” and “Very Poor” to have taken out a mortgage.
“For those with scores of 897 or below, it is likely that their average Credit score is higher than their credit rating.
For example, people with scores lower than 895 would be less likely to hold a mortgage,” the Credit Suise report said, noting that there was a correlation between the two measures.
Credit Score Report: Top 5 Credit Scores for Australia – Credit Suse article The report also found that people who have the highest credit scores have a higher income than those who score lower, with those with higher credit scores having an average income of $71,000 compared to $46,000 for those with less than a score.
Overall, those who scored above 899 were twice the size of those with low scores, with a median income of just $42,000.
While there is no one single best credit score, the latest Credit Report highlights some key factors that have led to people being able to boost credit scores.
There is more to credit than just a score, says the report, and people who score higher than 899 on their credit report are also more likely, when they apply for a credit card or bank account, to have the same amount of money available for a loan or savings account, which makes them more likely not to default on their loans or debts.
Among the best attributes for people with high credit scores is a history of paying down debt, with people with an excellent credit score having the lowest amount of debt, while people with a poor credit score have the most debt.
And while a “good” credit history means people have not failed to pay off debt, they may be more likely still to need to pay it off, with low credit scores being associated with more frequent payments on debt.
“People with low Credit Scores may not have experienced the same levels of financial stress as those who were ‘very poor’, but they have experienced greater stress from debt,” the latest report said of those who are having a poor financial outlook.
For more information on the report visit: http://www.creditsuisse.com/research