Brimbank had the state’s fourth-lowest average credit score according to a report by financial technology firm ClearScore.
Credit scores, also known as credit scores, are often used by financial institutions to assess whether to approve loans.
Higher credit scores are usually the result of an individual showing a history of on-time payments and low balances on their credit card.
Late or missed payments and a high credit card balance are often seen as negative.
ClearScore’s report on average credit scores in Australia, based on information from the Experian credit bureau, found that Victoria’s average credit score was just 684 behind the Australian Capital Territory and the Northern Territory.
An Experian credit score of 700 or higher is considered “very good.”
Brimbank, which is one of the lowest socio-economic areas in the state, has a credit score of just 658, one of the lowest in the state.
In Victoria, he was ahead of only Mildura (647), Latrobe Valley (654) and neighboring Tullamarine-Broadmeadows which had an average credit score of 655.
By comparison, Stonnington East had the highest average credit score in the state at 743, followed by Bayside and Boroondara both at 737.
The ClearScore report said most of Melbourne’s top 10 credit score areas are concentrated in the eastern and northeastern parts of the city, where median house prices tend to be more expensive.
In March, consumer group CHOICE published an analysis of 31,000 complaints received by the Australian Financial Complaints Authority regarding credit products, between November 2018 and December 2020
CHOICE Managing Director Alan Kirkland said that with mortgage lending at record highs, the housing boom “was pushing home ownership beyond the reach of many more Australians.”
As Star Weekly reports, many Brimbank residents have experienced rental stress while many have had to receive COVID-19 assistance payments in the past 18 months.