How to Improve Your Credit Score Australia (2026 Guide)

Quick Answer: To improve your credit score in Australia, start by getting your free credit reports from all three bureaus (Equifax, Experian, Illion) and identifying every negative entry. Dispute any inaccurate or unlawfully listed items under the Privacy Act 1988 — these can often be removed in 30–90 days. For accurate negative entries, focus on paying all current accounts on time, reducing credit card balances below 30% of the limit, and avoiding new credit applications for 3–6 months. Score improvements of 100–200+ points are achievable within 90 days when inaccurate defaults are removed.

A bad credit score doesn't just feel embarrassing. It costs you money — every single day. Higher interest rates, rejected loan applications, landlords turning you away, employers running checks. The damage is real and wide-reaching.

The good news: your credit score in Australia is not fixed. It changes every time new data hits your file. That means strategic action can produce real results, often faster than most people expect.

This guide covers every legitimate method available — from what you can do yourself today, to the situations where professional credit repair is the fastest path forward.

What Actually Controls Your Credit Score in Australia

Before you can improve your score, you need to understand what's dragging it down.

Under Australia's Comprehensive Credit Reporting (CCR) system, your score reflects both positive and negative data. Negative entries do the most damage. A single default — even one for a few hundred dollars — can drop your score by 100–200 points and sit on your file for five years under the Privacy Act 1988.

The main factors affecting your Equifax score (0–1,200 scale):

The single fastest way to improve your score is to remove inaccurate or unlawfully listed negative entries. Everything else — paying on time, reducing balances — is a slower build. Both matter. The order of priority depends on what's on your file.

Step 1 — Get All Three Credit Reports First

You cannot improve what you haven't measured.

Australia has three credit bureaus: Equifax (equifax.com.au), Experian (experian.com.au), and Illion (creditreport.com.au). Lenders may check any or all three. A negative entry might appear on one bureau and not the others — or it might appear differently across all three.

Get all three reports before taking any action. All three offer free annual reports. You can also get your Equifax score free via the Equifax website.

When reviewing each report, look for:

• Any defaults — who listed them, the amount, and the date
• Court judgements you weren't aware of
• Credit enquiries — hard enquiries you didn't authorise
• Incorrect personal information (address, employer, date of birth)
• Accounts that don't belong to you

Any entry that looks wrong is worth challenging. Incorrect credit file entries are more common than most people expect — and they're removable.

Step 2 — Challenge Inaccurate and Unlawfully Listed Entries

This is where the biggest score improvements happen, and fastest.

Under the Privacy Act 1988 and the Credit Reporting Code, credit providers must follow specific rules before listing a default on your file. If they didn't follow those rules, the listing is unlawful — and must be removed regardless of whether the underlying debt was real.

Common grounds for removal include:

1. Failure to issue a Section 21D notice — the creditor must send written notice before listing. If they skipped this step or got the timing wrong, the listing is invalid.
2. Incorrect default amount — the amount listed doesn't match what you actually owed at the time.
3. Debt was under genuine dispute — defaults cannot be listed while a legitimate dispute is unresolved.
4. Statute-barred debt — debts older than 6 years (in most states) are no longer legally enforceable.
5. Identity fraud — an account was opened without your knowledge.
6. Expired listing — the 5-year retention period has passed but the bureau hasn't removed it.

You can lodge these disputes yourself directly with the bureau or the credit provider. The challenge is that creditors are not quick to investigate their own compliance failures. A professional credit repair firm with legal expertise can identify the exact breach and apply pressure under the right statutory framework — which is why outcomes are faster and more successful with representation.

Get a free assessment from Australian Credit Solutions →

Step 3 — Build Positive Repayment History Under CCR

If your negative entries are accurate and not removable, the path forward is building positive data on top of them.

Since Australia's CCR regime came into effect, lenders can see 24 months of your repayment history across all accounts — not just the bad stuff. Every on-time payment adds a positive data point. Multiple on-time payments across multiple accounts compound over time.

Practical steps:

1. Set up direct debits for all minimum repayments — missed payments under CCR are visible immediately
2. Pay credit cards in full each month where possible — or at minimum, never miss the minimum
3. Keep credit card balances below 30% of the limit — high utilisation signals financial stress
4. Don't close old accounts — account age contributes positively to your score
5. Avoid applying for new credit for at least 3–6 months — each application creates a hard enquiry

Progress under CCR is real but slow. Expect 6–12 months of consistent behaviour to produce meaningful score movement through payment history alone. This is why removing negative entries first — when possible — produces such dramatically faster results.

How Much Can Your Score Improve and How Fast?

People often underestimate how much movement is possible.

The dramatic improvements — 200+ points — almost always involve default removal. Smaller but meaningful gains come from the self-help strategies. A combination of both, where applicable, produces the best outcome.

Real Case Study: Natalie, Adelaide — Score 431 to 739 in 61 Days

Natalie was a 34-year-old retail manager who'd been knocked back for a car loan three times. Her Equifax score sat at 431 — well into the Below Average band. She had two defaults on her file: one from a gym membership for $215, and one from an Origin Energy utility account for $680.

She came to Australian Credit Solutions after her bank referred her elsewhere for the third time. We reviewed both defaults. The gym listing had been issued without a valid Section 21D notice — the 30-day pre-listing notice had never been sent. The Origin listing had been made while a billing dispute was unresolved — a clear breach of the Credit Reporting Code.

Both grounds were strong. Both defaults were disputed formally within the first week.

The gym default was removed in 22 days. The Origin default took 39 days. Combined, Natalie's Equifax score moved from 431 to 739 — a 308-point improvement.

At day 61 she reapplied for the car loan through her bank. Approved at 7.4% interest. Her previous non-conforming quote had been 21.8% on $28,000 over 5 years — the difference saved her approximately $14,200 over the loan term.

She only paid when we succeeded.

Get a free assessment from Australian Credit Solutions →

What NOT to Do When Trying to Improve Your Credit Score

Some common mistakes actively make things worse:

Don't apply for multiple credit products at once. Each application creates a hard enquiry that stays on your file for 5 years. Three applications in a month can drop your score 30–60 points on top of whatever issue you were already dealing with.

Don't pay a default and expect it to disappear. Paying a default changes its status from "unpaid" to "paid" on your file — but it doesn't remove it. The listing remains for 5 years from the original listing date regardless of payment. Removal requires disputing the listing on compliance grounds, not paying it.

Don't use credit repair companies that promise guaranteed removals. No legitimate firm can guarantee an outcome. Results depend on the specific grounds available for each listing. ACS achieves a 98% success rate on cases it accepts — because it only accepts cases with genuine grounds. Subject to individual assessment.

Don't ignore errors. A wrong address, a wrong employer, an account that isn't yours — these affect the accuracy of your file and sometimes the score. Dispute every inaccuracy, no matter how minor it seems.

Should You DIY or Use a Professional?

The DIY route is free and appropriate for simpler situations. For defaults — especially recent ones — professional representation significantly increases the speed and probability of removal. The No Win No Fee model means there's no cost if the attempt is unsuccessful.

Read more: DIY vs professional credit repair

Frequently Asked Questions

How long does it take to improve a credit score in Australia? It depends entirely on the method. Removing an inaccurate default through a professional dispute can move your score 100–200+ points within 30–90 days. Building positive repayment history under CCR takes 6–12 months of consistent on-time payments to produce meaningful improvement. The fastest results always come from removing negative entries first, then compounding the improvement with consistent repayment behaviour.

Can I improve my credit score if I have defaults? Yes — in two ways. If the default was listed unlawfully or inaccurately, it can be removed entirely under the Privacy Act 1988, which produces an immediate score improvement. If the default was listed correctly, it will remain for 5 years from the listing date but its impact diminishes over time as positive payment data accumulates. Professional assessment determines which path applies to your specific situation.

Does checking my credit score hurt it? No. Checking your own credit score is a "soft enquiry" and has no impact on your score. Only "hard enquiries" — applications for credit made by lenders — affect your score. You can check all three bureaus as often as you like without any negative impact.

What's the fastest way to raise my credit score in Australia? The fastest method is removing an inaccurate or unlawfully listed default or court judgement. Score improvements of 100–250 points within 30–90 days are achievable when strong grounds exist. This is faster than any other method — including years of on-time payments. Get a free assessment to find out whether any of your negative entries are removable.

Does paying off a default improve my credit score? Paying a default changes its status to "paid default" on your file — which lenders view slightly more favourably than an unpaid default. But it does not remove the listing. The entry remains for 5 years from the original listing date regardless of whether it's paid. The only way to remove a default is to successfully dispute it on legitimate grounds under the Credit Reporting Code.

How many points does a default drop your credit score? A single default typically drops an Equifax score by 100–200 points depending on the amount, recency, and your existing score. A $680 utility default on a score of 650 might drop it to around 470–510. Multiple defaults compound the damage. This is why removal — not just time — is often the fastest path to loan approval.

Can I improve my credit score enough to get a home loan? Yes. Most mainstream lenders require a credit score in the Good band (661+ on Equifax) or above. If your score is in the Below Average or Average range due to defaults, removing those defaults can move you into the qualifying range within 30–90 days. ACS has helped thousands of Australians go from rejection to home loan approval through this process.

Your Next Step

The fastest way to know what's possible for your specific credit file is a free assessment. Our team reviews your reports, identifies every removable entry, and gives you an honest answer — no obligation, no pressure.

Get My Free Assessment → 📞 0489 265 737 🛡️ ASIC Licensed ACL 532003 | ⭐ 4.9/5 from 976+ Reviews | 🏆 Award Winner 2022–2024

Related Reading:

• How to fix bad credit in Australia
• Default removal services Australia
• How to check your credit score for free

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.