Your credit score is more than just a number, it’s your financial reputation. In Australia, this score is calculated by agencies like Equifax, Experian and illion, and is influenced by your repayment history, credit utilisation and even the number of enquiries you’ve made.
What’s considered a good score?
- Excellent: 833–1,200
- Very Good: 726–832
- Good: 622–725
- Average: 510–621
- Below Average: 0–509
What’s in your file
- Repayment history (up to 24 months)
- Defaults or serious credit infringements
- Credit applications
- Account open/close dates
Factors that impact your Credit Score
- Your repayment history
- Number and frequency of credit applications
- Types of credit (credit cards, payday loans, personal loans)
- Defaults, bankruptcies, court judgements
Tips to improve your score
- Pay bills and loans on time. Even one missed repayment can drop your score significantly.
- Limit unnecessary credit enquiries.
- Keep older accounts open to show stable credit history.
Why your score matters
Lenders use your credit score to determine how risky it is to lend to you. A higher score generally means:
- Access to better interest rates
- Faster approvals
- Greater borrowing capacity
- More negotiation power
Since 2019, Comprehensive Credit Reporting (CCR) means both positive and negative history is shared, so good behaviour is finally rewarded.
Your credit score isn’t everything, but it plays a big role in what you can borrow and how much it will cost. Stay informed, make smart financial decisions and speak with a broker who can help you plan ahead and build a strong credit foundation.
