Credit Score to Get Approved for Finance in Australia (2026)

Quick Answer: The credit score you need to get approved for finance in Australia depends on the product. For home loans at mainstream banks: 661+ (Equifax Good band). Car loans: 620+. Personal loans: 640+. Credit cards: 580+. Below these thresholds, specialist lenders can often still approve — but at significantly higher rates. If an unlawful default is suppressing your score, professional removal under the Privacy Act 1988 typically takes 30–90 days and can be the difference between approved and declined.

There's no single approval score in Australia — every product, and every lender within each product category, applies its own thresholds. But there are practical benchmarks that reflect how most lenders operate, and knowing them helps you understand where you stand and what you need to do.

Approval Score Benchmarks by Product

These benchmarks reflect practical approval thresholds, not published minimums. The actual outcome depends on income, employment, deposit or security, and whether any active defaults are present.

The Score Isn't the Only Thing That Matters

A score of 680 with an active default on your file will often be declined by a major bank — while a score of 650 on a clean file may be approved with conditions. This is because most lenders apply two-tier assessment: automated credit scoring AND policy rules about specific negative entries.

Active defaults trigger automatic declines at most mainstream lenders regardless of score. Excessive hard enquiries (5+ in 12 months) flag financial stress regardless of score. A recent bankruptcy shows up as a policy exclusion regardless of score.

Understanding what's behind the number matters as much as the number itself.

Real Case Study: Diana, Wollongong — Score of 662 Still Declined Three Times

Diana, 41, an aged care supervisor from Wollongong, had an Equifax score of 662 — comfortably in the Good band. She applied for a personal loan to consolidate two credit cards and was declined three times by mainstream lenders.

Her score was above the threshold. What the lenders were also seeing was a $270 default from a gym membership — listed 14 months earlier. The default had suppressed her score slightly (it sat at 662 rather than the 740 it likely would have been without it), but more importantly, it was triggering a policy rule that excluded active defaults from unsecured personal loan approval.

During her ACS assessment, we found the gym had listed the default just 18 days after sending the Section 21D notice — before the mandatory 30-day waiting period had elapsed. That was a direct breach of the Privacy Act 1988.

We challenged it. The default was removed in 17 days. Diana's score moved from 662 to 718. She applied again and was approved at a mainstream rate.

Result: Diana's score moved from 662 to 718 in 17 days. Personal loan approved at 11.9% p.a. vs the 24% specialist quote she'd been offered during her declined applications. Subject to individual assessment; results may vary.

What If Your Score Falls Below Approval Thresholds?

Two paths: professional removal (if any negative entries were listed unlawfully) or structured improvement over 3–18 months through consistent positive repayment behaviour. The fastest approach — and the one that produces the most significant improvements — is always to check for removal grounds first.

A free ACS assessment determines viability within 24 hours. If no removal grounds exist, we'll tell you honestly and suggest what else might help your score within a realistic timeframe.

Frequently Asked Questions

What credit score do I need to get a personal loan approved in Australia? Most mainstream unsecured personal loan lenders want an Equifax score of 640+. Some non-bank lenders will consider 580–639. Scores below 580 limit you to specialist personal loan lenders at rates of 25–35% p.a. An active default almost always triggers an automatic decline at mainstream lenders regardless of score.

Can I get approved for a credit card with bad credit in Australia? Some lenders offer credit cards to applicants with scores below 600, typically with low limits ($500–$1,000) and higher interest rates. If an active default is present, approval becomes very limited. A secured credit card — where you deposit an amount equal to your credit limit — is the most accessible option for applicants with impaired credit and serves as a credit-building tool.

Does my income affect my credit score in Australia? Income is not a direct factor in your credit score calculation — the score is based on credit behaviour data on your file. However, income is a critical factor in a lender's serviceability assessment, which runs alongside the credit score check. A high income doesn't improve your credit score, but it does improve your chances of approval in a discretionary assessment.

Can I get approved for a loan with a 500 credit score? A 500 Equifax score is in the Below Average band (0–459 is the lowest; 460–660 is Average). At 500, mainstream lenders will generally decline. Specialist and non-conforming lenders — particularly for secured products like car loans and home loans — will consider applications at this level, but at rates 2–3x higher than mainstream. If a default is causing the low score and can be removed, that's the priority before applying.

What happens if I'm declined and I apply somewhere else? Each new application creates a hard enquiry on your file, reducing your score by 5–30 points. Multiple declines in a short period — and the associated enquiries — make your situation harder, not easier. If you've been declined, stop applying. Get your credit file assessed to understand why, fix the underlying issue, then apply from a stronger position.

Is 700 a good credit score in Australia? 700 on the Equifax scale (0–1,200) falls in the Good band (661–734). It gives you access to most mainstream lenders at reasonable rates. It's not the best possible — that starts at 853 (Excellent) — but it's comfortably above the typical approval threshold for most products. Most ACS clients who successfully remove a default reach the Good band (661–734) immediately post-removal.

Understand Your Score Before You Apply

Knowing your score is step one. Knowing what's behind it — and whether anything can be improved before your next application — is step two. A free ACS assessment gives you both.

Australian Credit Solutions is ASIC-licensed (ACL 532003), lawyer-led by Principal Solicitor Elisa Rothschild, and has achieved a 98% success rate on accepted cases since 2014. No Win No Fee.

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Australian Credit Solutions Pty Ltd holds Australian Credit Licence ACL 532003. Credit repair services are subject to individual assessment. Results may vary. General information only — not legal or financial advice. External resources: Equifax Australia | MoneySmart | AFCA

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