What Credit Score Do You Start With at 18 in Australia? (2026)

Quick Answer: In Australia you don't start with a credit score of zero. You start with no score at all — because you have no credit file until you first interact with the credit system. The moment you apply for credit, open a phone plan, or appear in a credit check, a credit file is created and a score is calculated from scratch. Most Australians' first calculated score lands in the Average band (460–660 on Equifax) — often around 500–550 — because a thin file with limited history is scored as moderate risk, not high risk. The good news: you can build from Average to Excellent faster than most people expect.

The question seems simple but the answer surprises almost everyone. Here's the complete picture.

You Don't Start at Zero — You Start With No File

This is the most common misconception. In Australia, you don't have a credit score at birth, at 18, or at any point until a credit file is actually created for you. For more, see our guide on credit score for new migrants in australia.

A credit file is created when:

• You apply for credit (loan, credit card, phone plan on a plan)
• A lender or service provider accesses the credit bureau to check your identity
• You appear in a credit-related transaction

Until that moment, you are "credit invisible" — no file, no score. The three bureaus (Equifax, Experian, Illion) have nothing on you.

What Happens When Your File Is First Created

The moment your file is created, the bureau's scoring model calculates a score based on everything that's immediately available — which, for a brand new file, is very limited:

• Your personal details (name, DOB, address)
• The enquiry that triggered the file creation
• No repayment history
• No positive or negative listings

A brand new file with only an enquiry and no history typically scores in the 400–550 range on Equifax — sitting in the Average band. This is because thin files (limited information) are treated as moderate risk — not as clean slates. For more, see our guide on no credit history in australia? how to build it from scratch.

Counterintuitive, but accurate: your score at 18 with zero credit history is often lower than it will be at 25 with a few years of positive repayment history.

Why First Scores Land Where They Do

Equifax, Experian, and Illion scoring models are calibrated on population data. Statistically, people with thin files (new to credit) have higher default rates than people with established positive histories — so the model assigns a moderate-risk score until you prove otherwise.

It's not a penalty. It's a starting position that you build from.

Equifax Starting Score Range by Situation

The range is wide because the score isn't just about age — it's about what appears on the file from the moment it's created.

How to Build From a Starting Score Fast

The introduction of Comprehensive Credit Reporting (CCR) in 2018 changed everything for young Australians. Before CCR, only negative events appeared on your file. Now, every on-time monthly repayment on every credit account is recorded as a positive signal.

This means a 19-year-old with a phone plan and a low-limit credit card — both paid on time every month — is actively building positive credit history from day one. Two years of clean repayment history noticeably improves your score position.

The fastest building strategy at 18–25:

1. Get a phone plan on your own name — even a $30/month plan. Every on-time payment is recorded.
2. Apply for a low-limit credit card — $500–$1,000 limit from a bank or credit union. Use it for small regular purchases (petrol, groceries). Pay the full balance monthly. Never carry a balance.
3. Don't apply for multiple products at once — each application creates a hard enquiry. One phone plan + one card is enough to start building. Multiple applications at 18 will suppress your starting score further.
4. Pay every bill on time, every month — this sounds obvious but under CCR it's now mechanically recorded. One missed payment at 18 creates a negative marker that stays visible for 2 years.
5. Don't close the first account you open — credit history length matters. The longer your oldest account, the better. Keep it open even if you eventually upgrade.

What Damages a Starting Score Immediately

If your first interaction with credit goes wrong, the damage is disproportionate because there's no positive history to cushion it:

• A default on your first phone plan — drops a thin file score from ~520 to ~320–380
• Multiple applications in quick succession — 3+ hard enquiries at 18 signals credit-seeking behaviour to lenders
• Missed payments in the first 24 months — visible under CCR for 2 years and heavily weighted when there's no offsetting positive history

The good news: if something goes wrong early and it was listed in breach of the Privacy Act 1988 — wrong notice address, incorrect amount — it can be removed. Even at 18, Australian credit reporting law applies fully.

Frequently Asked Questions

What credit score do you start with at 18 in Australia? You don't start with any score — you have no credit file until you first interact with the credit system. When your file is first created (typically when you apply for a phone plan or credit card), your initial calculated score usually lands in the 500–550 range on Equifax (Average band), reflecting a thin file with limited history.

Is your starting credit score zero in Australia? No — zero is not a starting score in the Australian system. You either have no file (no score) or you have a file with a calculated score based on what's in it. A brand new file with only a creation enquiry and no history typically scores around 500–550 on Equifax, not zero.

How do I build credit at 18 in Australia? Get a phone plan in your own name and a low-limit credit card. Pay both in full and on time every month. Under Comprehensive Credit Reporting, every on-time payment is recorded as positive history. Avoid multiple credit applications at once. After 12–24 months of consistent on-time payments, your score will have improved meaningfully.

Can I have a credit score before 18 in Australia? No — you must be 18 to enter into credit contracts in Australia. Before 18, no credit file can be created and no score exists.

What happens to my credit score if I miss a payment at 18? Under Comprehensive Credit Reporting, a missed payment creates a negative marker that stays on your file for 2 years. On a thin file with no offsetting positive history, this has a disproportionate negative impact. Avoid any missed payments in your first 24 months of credit activity.

Does my starting credit score affect my ability to get a home loan later? Not directly — your starting score is just a starting point. What matters for a home loan application (typically 5–10 years later) is the history you've built since. 5+ years of positive repayment history, no defaults, and limited enquiries can produce a strong score regardless of where you started.

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If you're older than 18 and something went wrong early — a default on your first phone plan, an error from a creditor — Australian Credit Solutions can assess whether it's removable. Over 5,000 Australians helped since 2014. 98% success rate on accepted cases. No Win No Fee. Industry Excellence Award 2022, 2023 & 2024. All disputes under the Privacy Act 1988 and the Credit Reporting Code.

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.

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