If you have applied for credit or a loan in Australia, you will have a credit score. Depending on the credit reporting agency, your score will be between zero and either 1,000 or 1,200.
Ideally, it’s best to have a good credit score in Australia. It means lenders will consider you more trustworthy and less of a risk. It also means you could get a better deal on your loan — lower interest rates, for example.
So what is a good credit score in Australia?
Credit reporting agencies put your credit score into easy-to-understand categories: excellent, very good, good, average (or fair) and below average. This makes it very simple to know whether you have a good credit score by Australian standards.
Different credit reporting agencies may have slightly different credit scores for you. This is because there are variations in the information they hold. These agencies also have varying credit score ranges for each category. The table below shows the credit scores you need for a good credit score in Australia from three separate agencies.
Differences between Australia’s major credit reporting agencies
Although Equifax, Experian and Illion all calculate credit scores, they often show different numbers for the same person. Part of this comes down to scale and tiers: Equifax uses a scale up to 1,200, while Experian and Illion use scales up to 1,000. Because of this, what could be a good credit score under one system may lie in a different range under another.
Another key difference involves what data and how often each bureau receives updates. Not all lenders report to all three agencies, and there are timing delays. A late payment may appear on one bureau’s report quickly, but take weeks or more to show up on another.
Finally, their weighting and algorithms differ. Each bureau uses different formulas (which are proprietary) to combine factors like repayment history, number of enquiries, credit mix, etc. This means the same behaviour can have a different effect depending on the agency. You can contact these agencies directly and request a free credit report.
Bear in mind that your credit score is not fixed for life. Over time, it can go up and down as your financial habits change. If you don’t have a good credit score at the moment, there are actions you can take to improve it.
How your credit score is calculated
As mentioned, each credit reporting agency uses a different algorithm to calculate credit scores. The agencies don’t make the precise details of their computations available. What is known is that they factor in past events to predict future financial behaviour. They also look at the following:
- The type of lender who has made enquiries on your report
- The type of loan product you have applied for
- Your repayment history
- The credit limit of each of your credit products
- The number of loan applications you have made
- Negative financial events
How to check your credit score in Australia
Knowing how to check your credit score is the first step to understanding your financial standing. In Australia, you’re entitled to a credit report from each of the three main agencies once every three months. This lets you monitor your record regularly and ensure no errors are holding you back.
Here’s how to access yours:
- Equifax — You can request a free Equifax credit report in several ways: online, by phone or by mail. You’re eligible once every three months, or sooner if you’ve been denied credit in the past 90 days, or after corrections have been made to your credit report.
- Experian — Go to Experian Free Credit Report and make a request by providing your full name and email. Verification is required before you can download your report.
- Illion — Illion is now part of Experian, so you can order your report from the Experian site as well.
Pro Tip: Lenders don’t all use the same agency, so checking with all three is the best way to get a complete picture. It also helps you see how close you are to moving into the “good credit score Australia” range or even the “excellent” category.
Remember, checking your own score doesn’t hurt it. Instead, it gives you visibility on your financial profile and helps you take action if you notice a drop. For context, the average credit score in Australia sits in the “good” range, which means aiming higher than average could give you access to better loan terms.
What is the average credit rating in Australia?
According to Finder, the average credit score in Australia is 735. This is considered “good” by the leading credit report agencies. The average varies, depending on your age and gender. After age 21, the average credit score rises for both men and women for each decade of life. Males aged 60 years and over have the highest average credit score of 788.3. Females aged 60 years and over have the second-highest average credit score of 787.9. This is likely because they have longer credit histories and fewer recent credit enquiries.
Besides demographics, credit scores also vary by geography. For example, ClearScore data reveals that people in South Australia averaged around 681, whereas Western Australia was close at 674, using the Experian scale. ACT tops the survey with an average score of 695.
What is a good credit score for lenders?
When people ask “what is a good credit score in Australia?”, it’s natural to focus on the number itself. Most agencies agree that a score in the “good” or “very good” range (typically from around 625 upwards) signals lower risk. But in practice, lenders don’t make decisions on credit scores alone.
A good credit score indicates reliability, but banks and lenders also weigh other financial factors.
- For one, your income helps them assess whether you can afford the loan you’ve applied for.
- Your assets, such as property or savings, demonstrate financial stability.
- They’ll also consider your debt-to-income ratio, which compares how much you owe against what you earn. All things considered, even with a strong score, high existing debt can raise red flags.
- Lenders also look closely at your credit report history, including repayment patterns, the number of enquiries and any defaults.
So, while knowing what the average credit rating in Australia is can be helpful for benchmarking, lenders form their decisions using a broader financial picture. In short, your credit score is essential, but it’s only one piece of the puzzle.
How to build and maintain a good credit score
Building and protecting a good credit score in Australia requires more than simply paying bills on time. Lenders want to see a pattern of responsible financial behaviour, and there are practical steps you can take to strengthen your record.
- Budget effectively — Keeping your expenses in check helps ensure repayments are made consistently. A realistic budget also lowers the chance of over-relying on credit.
- Limit unnecessary credit applications — Whether it’s for a credit card or balance transfer, each application leaves a footprint on your report. Multiple enquiries in a short time can signal financial stress to lenders.
- Monitor your credit report for errors — Mistakes happen, and an incorrect late payment or enquiry can drag your score down. Checking your report every few months allows you to dispute inaccuracies quickly.
- Be mindful of credit products — Using structured finance such as secured personal loans can demonstrate responsibility. In contrast, reliance on high-cost products like payday loans can negatively affect how lenders view your profile.
- Understand how long negative marks last — Defaults generally remain for five years, while serious events like bankruptcy can stay on record for up to seven years in Australia.
Maintaining a good credit score is about consistency over time. By managing credit sensibly and reviewing your report regularly, you’ll be in a stronger position whenever you apply for new finance.
Turn a good credit score into better loan options
As we’ve explored in this article, understanding what is a good credit score is only part of the picture. The real value comes from using that knowledge to make smarter financial decisions. A strong score can open the door to better loan options, lower rates and greater flexibility.
Looking for a personal loan that’s simple and transparent? At NOW Finance, our personal loans have zero fees, which is why our comparison rates always equal our headline rates. Whether you need $10,000 or $100,000, you get a dedicated loan advisor to guide you.
Get your personalised quote today, or contact us with any questions.
Disclaimer: This article contains factual information only and does not constitute financial advice, a recommendation, or an offer of any kind. It has been prepared without considering your personal objectives, financial situation, or needs. Before taking any action, you should assess whether the information provided is appropriate for your circumstances. If this article discusses the acquisition or potential acquisition of a specific credit product, you should obtain and review the relevant disclosure documents before applying. The information is believed to be accurate as at the date of publication; however, changes in circumstances after this date may affect its accuracy.
