Credit Scoring




In today's ever-changing world it is essential that you complete all the required information when completing a loan application as financial institutions today operate in a highly competitive environment where speed of approval is essential.

In order to achieve this, all lenders rely on sophisticated statistical and actuarial models to assess the credit-worthiness of potential borrowers. Such credit-scoring models use borrower attributes to compute a probability of default and sort borrowers into different classes.

Attributes such as age, financial data, education, residence, profession and various public records of credit histories are fed into the scoring model. Similar borrower profiles and credit track records are used to generate a probability of default, and ultimately, the loan candidate's credit rating.

By using credit-scoring models, banks & and financial institutions, can very quickly determine if an individual is worthy of a loan, and what should be the conditions of the loan, such as the amount of interest to be charged, and whether collateral is needed as security.

You have to keep in mind that credit scoring is not only limited to banks & financial institutions, many other organisations, such as insurance companies, government departments, landlords, employers, phone companies, credit card companies , are all employing the exact same techniques.

In today's current environment, a declined credit score result can severely affect your chances of obtaining the finance that you may be seeking.

In the past, it would have been extremely rare for a customer's loan application for finance to have been rejected and declined, solely on the basis, that you may have failed on your credit score.

You also have to keep in mind that EXCESSIVE enquiries on your credit report, can also affect your credit scoring!

Steps to take in maximising your credit score

To maximise your credit score when completing a finance application you must take the following legitimate fundamental steps:

  • Show all addresses for the period required - this is usually 2 to 3 year period.
  • Must provide your current licence number
  • Must provide your Medicare number
  • Include all assets including shares, superannuation and voluntary superannuation
  • List all contact details, email, faxes, mobile numbers of yourself and your references, including your employment details
  • All employment history details, usually for the last 2 to 3 year period, including contact details, phone numbers, faxes, email address and actual employment address as well!
  • Show all your bank account details, even if you do not have much savings in them, as this can also affect your credit score, if not listed!

SIMPLY PUT: the banks and financial institutions, have made it clear that they want every section of the application completed (leaving no blanks), which would result in a much better credit score.

If you have any queries regarding any Finance, Mortgage or Insurance or any other matter,
please don't hesitate to contact our professional team at FLR Solutions on:

0415 280 555 or This e-mail address is being protected from spambots. You need JavaScript enabled to view it

or Simply fill out our enquiry form and we will promptly contact you




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