What is a good credit score?

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If you have applied for credit or a loan in Australia, you will have a credit score. Depending on the credit reporting agency, your credit 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 in Australia 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 sometimes variations in the information that they hold. Different credit reporting agencies also have different 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.

Credit score categoryEquifaxExperianIllion
Excellent841 – 1,200800 – 1,000800 – 1,000
Very Good756 – 840700 – 799700 – 799
Good666 – 755625 – 699500 – 699
Average (or Fair)506 – 665550 – 624300 – 499
Below Average0 – 5050 – 5490 – 299

As you can see, the agency illion defines a good credit score in Australia as 500 and above, while for Experian and Equifax, the ranges are 625-699 and 666-755, respectively. 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. Read about how to improve your credit score here.


How your credit score is calculated

Each credit reporting agency uses a different algorithm to calculate credit scores. The agencies don’t make the precise details of their calculations 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


Average credit score in Australia 

According to Finder, the average credit score in Australia is 695.6. This is considered “good” by the leading credit report agencies. The average varies, depending on your age and gender. After the age of 21, the average credit score rises for both men and women for each decade of life. Males of 60 years and over have the highest average credit score of 788.3. Females of 60 years and over have the second-highest average credit score of 787.9.


Disclaimer:  This article contains general comments and recommendations only. This article has been prepared without taking account of your objectives, financial situation or needs. Before taking any action you should consider the appropriateness of the comments made in the article, having regard to your objectives, financial situation and needs. If this article relates to the acquisition, or possible acquisition, of a particular credit product you should obtain and consider the relevant disclosure documents before applying for the product. The information in this article is considered to be true and correct at the date of publication, changes in circumstances after the time of publication may affect the accuracy of the information.

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