While credit scoring has been in existence for some time in other parts of the world, such as the United States and Europe, it’s a relatively new concept in Australia. The idea behind a credit score is quite simple; it is designed to provide a credit provider with a tool to quickly assess risk.
Many credit providers set an automated credit system, meaning that once a credit score drops below a certain level the credit provider will consider the risk too high and most likely decline the application. Unfortunately it is the negative listing itself that credit providers react to, so regardless of who listed the default, the amount, or even if it has been paid, the answer remains the same – “declined”.