Understanding Your Credit Score in Australia
Your credit score is a number between 0 and 1,200 (Equifax) or 0 and 1,000 (Experian) that reflects your creditworthiness. Lenders use it to decide whether to approve your loan and at what interest rate.
What Affects Your Credit Score?
Positive Factors
- Paying bills and loans on time
- Low credit card balances
- Long credit history
- Limited applications for new credit
Negative Factors
- Missed or late payments
- Defaults or judgements
- Too many credit applications in a short period
- High credit card limits (even if unused)
- Bankruptcy or Part IX debt agreements
Credit Score Ranges (Equifax)
| Score | Rating |
|---|---|
| 833–1,200 | Excellent |
| 726–832 | Very Good |
| 622–725 | Good |
| 510–621 | Average |
| 0–509 | Below Average |
How to Check Your Credit Score
You can check your credit score for free through:
- Equifax (equifax.com.au)
- Experian (experian.com.au)
- illion (creditcheck.com.au)
How to Improve Your Credit Score
- Pay everything on time — set up direct debits for all bills
- Reduce credit card limits — even unused limits count against you
- Don't apply for too much credit — each application creates an enquiry on your file
- Wait out negative listings — most defaults disappear after 5–7 years
- Check for errors — incorrect listings can be disputed with the credit bureau
What Score Do You Need for a Home Loan?
Most lenders prefer a score above 600, though this varies. A score above 700 significantly improves your chances of approval and access to better rates. Some specialist lenders work with borrowers who have lower scores, but rates are typically higher. A Loan Rocket broker can match you with the right lender based on your credit profile.