How Is Your Credit Score Calculated in Australia? (2026)

Quick Answer: Your Australian credit score is calculated by credit reporting bureaus (Equifax, Experian, Illion) using a statistical model that analyses data from your credit file. The five main factors are: repayment history (biggest impact — 24 months of on-time or late payments under CCR), credit enquiries (each application creates a hard enquiry reducing your score), default or negative listings (largest single score reduction), credit account types and history length, and personal information stability (address, employment). Scores range from 0–1,200 on Equifax. The national average is 864 Excellent. If incorrect data is inflating your negative score signals — wrong defaults, duplicate enquiries, listing errors — Australian Credit Solutions can dispute them under the Privacy Act 1988. 98% success rate. No Win No Fee. ASIC ACL 532003. Industry Excellence Award 2022, 2023 & 2024.

Understanding how your score is calculated is the first step to understanding how to protect — and improve — it. Here's the complete picture.

The Three Credit Bureaus and Their Scoring Scales

Australia has three credit reporting bureaus. Each calculates your score independently using its own algorithm and scale:

Because each bureau uses different data (not all lenders report to all three) and a different algorithm, your score will vary between bureaus. An Equifax score of 700 and an Experian score of 700 represent different things — the Good band on Equifax extends to 852, while on Experian Good stops at 799.

Always check all three. Australian Credit Solutions reviews all three as part of our free assessment.

The 5 Factors That Calculate Your Score

Factor 1: Repayment History (Highest Weight)

Under Comprehensive Credit Reporting (CCR), the last 24 months of your repayment behaviour across all credit accounts is recorded and scored. This is now the single most influential factor in your score calculation.

Every month, each of your credit accounts (home loan, credit card, personal loan, car finance, BNPL since June 2025) is recorded as:

• On time — positive signal
• 14+ days late — minor negative signal
• 30 days late — moderate negative signal
• 60 days late — significant negative signal
• 90+ days late — severe negative signal

A 24-month repayment history with zero late markers across three accounts is worth more in score terms than any other single factor. Conversely, a pattern of 30-day late markers — even without a formal default — can suppress your score by 100+ points.

Factor 2: Credit Enquiries

Every time you apply for credit, the lender accesses your credit file. This access is recorded as a hard enquiry and remains on your file for 5 years. Hard enquiries reduce your score — the impact is sharpest in the 12 months after the enquiry and diminishes over time.

Score impact by enquiry volume (approximate):

The scoring model reads clusters of enquiries as signals of financial stress or "credit shopping" — applying for multiple products suggests you may need credit urgently or have been declined elsewhere.

Checking your own credit score (soft enquiry) does not affect your score.

Factor 3: Negative Listings — Defaults, Court Judgments, Bankruptcy

Formal negative listings create the largest single-event score reductions:

A single default can move a score from Good (700+) to Below Average (400s) in a single credit file update. This is why professional credit repair — disputing incorrectly listed defaults under the Privacy Act 1988 — produces such dramatic score improvements when successful. For more detail, see our guide on average credit score in australia: by age & bureau.

Factor 4: Credit Account History and Mix

Length of credit history: The longer your oldest active credit account, the more positively it's weighted. A credit card you've held for 8 years with clean repayment history is a significant score asset. Closing it eliminates that history.

Credit mix: Having a variety of credit types (home loan + credit card + car loan) scores better than a single product, as it demonstrates you can manage multiple forms of credit responsibly.

Credit utilisation: CCR now shows your credit limits, not just your balances. Using 90% of your available credit limit is flagged as high utilisation — even if you pay the balance in full monthly.

Factor 5: Personal Information

Address stability, length of time at current address, employment consistency, and age all factor into the model at lower weights. Frequent address changes create minor negative signals. Overseas addresses or recently arrived migrants with no Australian credit history start with no file (not a zero score).

Case Study: Wei, Sydney — Understanding the Score After 3 Enquiries in 6 Weeks

Wei, 34, a software engineer from Parramatta, had an Equifax score of 742 — solidly in the Good band. She was ready to apply for a home loan. Her broker submitted her application to three lenders simultaneously to compare rates. Each lender pulled her credit file. Three hard enquiries in 6 weeks.

When Wei checked her score two months later: 698. She'd dropped 44 points — falling just below the 700 threshold that some lenders use for standard rate qualification. Her broker hadn't warned her about enquiry stacking.

Australian Credit Solutions reviewed the file. Two of the three enquiries had a legitimate basis. The third lender had accessed her file without her explicit consent for that specific application — she'd consented to a general broker enquiry but not to that lender individually. We disputed the third enquiry under the Privacy Act 1988. Enquiry removed. Score recovered to 727 within 3 weeks.

Wei paid nothing until we succeeded.

Get a free assessment from Australian Credit Solutions →

Why Your Score Differs Between Bureaus

Your Equifax score and your Experian score will rarely be identical. Reasons include:

• Different data inputs: Not every lender reports to all three bureaus. Your home loan lender might only report to Equifax. Your phone plan might only go to Illion.
• Different algorithms: Each bureau weights the five factors differently.
• Different timing: Each bureau updates at different points in the month as data is received from lenders.

This is why checking all three bureaus matters — and why a negative entry might only appear on one, while the other two show clean files.

What Cannot Be Used to Calculate Your Credit Score

Under Australian law, the following factors cannot be used:

• Race, ethnicity, or national origin
• Gender or marital status
• Religion or political opinions
• Age (directly — though credit history length is a proxy)
• Where you live (suburb or postcode)
• Income or assets (not on your credit file)

If you believe a lender has made a credit decision based on prohibited factors, this is a serious legal matter separate from credit file disputes.

Frequently Asked Questions

How is a credit score calculated in Australia? Your credit score is calculated by credit bureaus (Equifax, Experian, Illion) using a statistical model that analyses five main factors from your credit file: repayment history over the past 24 months (highest weight), credit enquiries from loan applications, formal negative listings (defaults, court judgments, bankruptcy), credit account history length and mix, and personal information stability. The exact weighting formula is proprietary to each bureau.

Does checking my credit score lower it? No. Checking your own credit score is a soft enquiry that doesn't appear on your credit file and has no impact on your score. Only hard enquiries — when a lender or credit provider accesses your file as part of a credit application — affect your score. You can check your score as many times as you like at no cost and no penalty.

How often does your credit score update in Australia? Credit scores update whenever your credit file receives new data from lenders or bureaus — typically monthly, as most lenders submit data on a monthly cycle. A default removal or new enquiry can trigger a score update within 1–5 business days of the bureau processing the change.

What is the highest credit score in Australia? 1,200 on the Equifax scale. 1,000 on both the Experian and Illion scales. Very few Australians reach the maximum — scores above 900 (Equifax) put you in the top tier for credit approval and typically qualify you for the best available interest rates.

What credit score do you need for a home loan in Australia? Most major banks prefer Equifax scores of 600+ for standard lending, with scores above 700 accessing the best rates. Specialist lenders (Pepper Money, Liberty Financial) consider applications at lower scores, typically 500+ for secured lending. Score thresholds vary by lender, loan-to-value ratio, and other application factors. Your credit score is one factor — income, employment, deposit, and existing debts are equally important.

Can I dispute factors used to calculate my credit score? Yes — if data on your credit file is incorrect, you can dispute it under the Privacy Act 1988. This includes incorrect repayment markers, unauthorised enquiries, incorrectly listed defaults, and duplicate entries. Correcting or removing incorrect data can significantly improve your score. Australian Credit Solutions has helped over 5,000 Australians and handles these disputes on a No Win No Fee basis.

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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. This article provides general information only and does not constitute legal or financial advice.

Related reading: What is a good credit score in Australia? → | How to improve your credit score → | Remove credit enquiries →