(2 June 2022) A SocietyOne survey of 1,596 customers on credit scores revealed that while almost all respondents believed knowing their score was absolutely critical to improving their finances, the majority had no clue what their score was before signing up to SocietyOne.
A whopping 97.7 percent of respondents thought it was important for Australians to know their credit score, 93.3 percent said they found it useful to have finally learnt their score through SocietyOne, and 73.5 percent also wished to improve their credit score and overall finances.
Yet despite these stated beliefs, only 32.8 percent of respondents knew their credit score before being encouraged to check it with SocietyOne, and 60.9 percent were then surprised by the result once they received their score, highlighting a major gap between knowledge and action.
Most respondents (66.3 percent) said they had improved their credit score since becoming a SocietyOne customer, 23 percent of respondents said they had already used their score to get a better deal on a lending product, and 43.3 percent wanted even more tips on how to improve their score further.
The SocietyOne credit score draws on data from the Experian credit bureau. SocietyOne’s 200,000+ credit score customers also benefit from deeper insights and access to exclusive content designed to help educate customers on credit scores and broader financial topics.
The SocietyOne survey was performed immediately prior to SocietyOne’s acquisition by MONEYME (ASX:MME), a digital lender and non-bank challenger that is equally as passionate about the financial wellbeing of its customers.
Jonathan Chan, Chief Operations Officer at MONEYME, said: “A credit score is an excellent indicator of financial health, and many Australians appear to understand its importance.
“However, half of all Australians still have not applied for their score to know where they stand when applying for credit or a loan. And finding out your score is also only the first step.
“Understanding what actions and habits have impacted your score can help to guide what you need to do to improve it. Credit scores are dynamic and can change with certain types of financial behaviour, so we also encourage Australians to regularly check their credit report to proactively manage your financial health.
“The fact that so many of our customers have improved their credit score since signing up with us shows that knowledge about and engagement with your score and overall finances can help you to improve your finances overall, whether that be by getting a better deal on a loan, or creating good financial habits.”
Experian General Manager of Credit Services, Tristan Taylor, said: “While improving your credit score takes time and careful management, there are ways people can proactively manage the health of it.
“Don’t forget that a credit score is simply a view of your financial health and the way you work with credit. Keeping on top of your repayments and choosing the right financial products for your situation are important factors in maintaining a strong credit score.
“Tips on how to improve credit scores can be found at CreditSmart, an industry initiative developed by credit experts to help Australians understand how credit reporting works and how to look after credit health.”
Key factors that can help to influence a credit score include:
The type of lender you have applied to
How well you’ve kept up with your repayments
The credit limit of each of your credit products
The type of product you have applied for
The number of credit applications you make
Any negative events, such as defaults, judgements or bankruptcies
Case study: Kurt Phipps
Kurt Phipps is a 30-year-old electrician living in Sydney, and is currently considering buying a property.
But he wanted to check a few things first.
According to Kurt: “I’m currently interested in taking out a home loan. But before applying for any finance, I wanted to better understand my financial situation including if there was anything I could do to improve my borrowing power.
“So I checked my credit score with SocietyOne, as I knew my score would give me a snapshot of my financial situation. On top of my score, however, the SocietyOne credit report also provided a number of personalised insights on how I could improve it.
“This knowledge has allowed me to gamify improving my finances, incentivising me to see how high I can lift my score.
“Having a tangible figure to improve has been really motivating, and I’m looking forward to seeing how high it can go!”
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Please contact Erika Streegan for any interview requests: 0401 788 399.
SocietyOne (www.societyone.com.au) is a wholly owned subsidiary of ASX-listed MONEYME Ltd (ASX:MME), since being acquired by the Group in March 2022. Its award-winning digital finance platform has provided over $1 billion in total lending and helped over 35,000 borrowers since 2012. Its broker distribution channel has driven over $70 million in loan originations since its launch in 2019.
SocietyOne offers fixed rate secured and unsecured personal loans, and a free credit score product which helps customers understand and improve their score through clear and simple insights. The latest addition to SocietyOne’s product range is its BaaS-powered transaction and savings accounts, SpendOne and SaveOne.
SocietyOne has also received numerous tier-1 awards, including placing in the AFR’s Top Most Innovative Companies list successive years, winning Deloitte Fast 500 (APAC), listing in KPMG and H2 Venture’s Global Top 100 FinTechs, and receiving multiple product categories awards from Canstar and Product Review.
About the MONEYME Group
The MONEYME Group is a leading FinTech disruptor on course to become Australia’s #1 non-bank credit provider.
With a focus on innovation, we fund ambitious Australians with market-leading speed and seamless customer experiences. Leveraging AI and advanced, cloud-based technology, we offer highly automated credit products across personal, auto and real estate finance.
MONEYME Ltd (the ‘Group’) is an ASX-listed, licensed, and regulated credit provider operating in Australia.