A survey of 2,026 Australians, conducted by comparison website Finder.com.au, has reported that a total of 73 per cent of respondents either did not know their credit score (65 per cent) or were unaware of what a credit score was (8 per cent).
Finder estimated that this amounted to approximately 14.2 million Australians.
According to the survey, Millennials were most likely to know their credit score, representing 32 per cent of the overall 27 per cent of respondents that said they knew their credit score.
Conversely, respondents from Generation Z were least likely to know their score (23 per cent), trailing Baby Boomers and Generation X (both at 25 per cent).
Reflecting on the research, Kate Browne, personal finance expert at Finder, urged borrowers to make an effort to know their score, particularly in light of tighter credit conditions imposed off the back of the banking royal commission.
“Your credit score is a vital sign of your financial health and could see you turned down for a home loan or personal loan,” she said.
“It’s hard to believe 14 million Aussies don’t know their score – after all, lenders and banks certainly know your score, shouldn’t you?
“As lending has become stricter following the royal banking commission, it’s important to find out what your score is. That way, if it’s not in the best shape, you can take steps to improve it.”
Further, a Finder analysis of 14,000 Australian credit reports found that Canberra residents have an average credit score of 706 – the highest in Australia, followed by Sydney (705), Melbourne and Adelaide (702), Perth (694), Darwin (686), Brisbane (679) and Hobart (664).
Ms Browne added: “It should come as no surprise that the ACT is also the highest income earning region in Australia.”
Pointing to data from the Australian Bureau of Statistics, Finder noted that the varying credit score average across Australia reflected average weekly wage earnings, with Canberrans earning the most in the country at $1,847 per week, compared to $1,460 in Tasmania.