At North Star Mortgage Network, we talk a lot about the importance of credit scores—and for good reason. Whether you’re buying your first home, refinancing, or applying for a second property, your credit score will influence your options, your interest rate, and your approval timeline.

In this guide, we’ll explain what credit scores are, how they’re calculated, and how you can check yours for free—without hurting your score.

What Are Credit Scores?

Credit scores are numerical summaries of your credit history. They help lenders like mortgage brokers, banks, and credit card companies assess how reliable you are when it comes to repaying debt. The higher your score, the less risky you appear to lenders.

Your credit score can impact:

  • Mortgage loan approval
  • Interest rates
  • Required down payments
  • Loan program eligibility (FHA, VA, Conventional, etc.)

There are three main credit reporting agencies in Australia that generate credit scores: Equifax, Experian, and TransUnion. Each uses slightly different scoring systems, but the core principles are the same.

How Credit Scores Are Calculated

Equifax Credit Scores

Equifax provides credit scores ranging from 0 to 1,200, with higher numbers reflecting better credit health. You can check your free Equifax score using GetCreditScore, which is:

  • 100% free
  • Secure and encrypted
  • Won’t hurt your credit score

This score is based on factors like repayment history, defaults, credit inquiries, and judgments. It’s one of the most widely used scoring models in the country.

Experian Credit Scores

Experian scores range from 0 to 1,000. Here’s a breakdown of their categories:

  • 800–1000: Excellent
  • 700–799: Very Good
  • 625–699: Good
  • 550–624: Fair
  • Below 549: Below Average

Experian calculates your score based on:

  • Credit usage
  • Types of accounts
  • Credit inquiries
  • Negative items (defaults, missed payments)

Learn more about Experian credit scores

TransUnion Credit Scores

TransUnion also provides secure, free access to your credit report and score. Like the others, their system evaluates credit usage, types of debt, recent inquiries, and repayment history.

Checking your TransUnion score regularly can help you understand how lenders view your financial profile.

Get your free TransUnion credit report

Why Credit Scores Matter for Mortgages

Credit scores are one of the key indicators lenders use when evaluating mortgage applications. At North Star Mortgage, we help clients understand where their score stands—and what that means for loan qualification.

Here’s how your credit score can affect your mortgage:

  • Above 740: Usually qualifies for the best rates and terms
  • 620–739: Typically eligible for most Conventional loans
  • 580–619: May qualify for FHA or VA loans with compensating factors
  • Below 580: Limited options, but still possible with the right program

We offer expert guidance even if your credit score isn’t perfect—and we’ll help you create a plan to improve it over time.

Can You Improve Your Credit Scores?

Yes, and it’s worth doing. Here are a few tips:

  • Pay bills on time – this is the #1 factor.
  • Keep balances low on credit cards.
  • Limit new credit inquiries.
  • Check your credit reports regularly for errors or outdated information.

Final Thoughts from North Star Mortgage

Credit scores are more than just a number—they’re a reflection of your financial habits and history. But they’re also dynamic, and they can be improved over time. At North Star Mortgage Network, we take the time to review your credit profile with you and find the best mortgage solution—regardless of where you start.

Before you sign anything, make sure you’ve explored your options with a local expert who has your best interest at heart.

Let’s Review Your Credit Score Today
Call or text Nathan Young at 904-613-7700
Visit: www.nsmn.com
Explore our mortgage blog: https://www.nsmn.com/blog
Receive your free monthly Home Report: https://lstrep.co/Lgg77V4uO

Posted in blog