Credit Ratings

82 percent of people surveyed couldn't tell you what their score is - 40 percent have never heard of the concept.

30 year old Erin Peak - chops and changes lenders at least once a year chasing the best balance transfer rate, it's hurt her credit rating because lenders see her always juggling credit. "I was a bit annoyed because I pay off everything in time and I assume that would be in my favour not the changing banks and changing cards- it's making me think twice - I like the points - but if it means it's going to be difficult for me to get a loan in future it's making me think twice about doing it."

In simple terms your credit score is divided up like this- 35% is given to your payment history- do you pay your bills on time?

- 30 % is your debt burden - how much you have borrowed and paid off

- 15% to length of loan -

-10% on the type

And another 10% on how many inquiries a loan provider has checked your history. The average credit score in Australia is 690 - which lenders see as a good loan risk.

A new Aussie backed 'credit savvy' website is being launched tomorrow - and will give consumers ongoing access to their credit rating - for free - sending through alerts when a customer's slips up on repayments. John Symond.

"It's unfair just to record all the negative stuff- what about all the good things people do and that credit history is not recorded - the laws have changed but I want people to better understand how it works so that they can be in the driver's seat not the banks or the credit card providers."

Even though credit reporting laws were reformed last year to make the system fairer for consumers - encouraging lenders to record good payment history not just bad - Little has actually changed - as it's still a voluntary system.

Daniel Frogoo is CEO of Rate Setter and believes credit reporting should be mandatory across the board so those with a good payment history are rewarded. "What we find is good credit borrowers end up subsidizing lesser credit borrowers which is not entirely fair and then also people that should have access to good finance are not being provided finance." It's hoped this website will encourage customers to be smarter with credit - get a better credit number - and help negotiate a better deal.