What Is a Credit Score in Australia? Complete 2026 Guide

Quick Answer: A credit score in Australia is a number that summarises your credit history and predicts how likely you are to repay debts on time. Scores are calculated by three independent bureaus — Equifax (0–1,200), Experian (0–1,000), and Illion (0–1,000) — using your repayment history, defaults, credit enquiries, and account information. A higher score means lower lending risk in the lender's eyes. Most mainstream lenders want to see at least a "Good" score (661+ on Equifax) before approving standard loan products.

Most Australians know credit scores exist. Fewer than half have ever actually checked theirs. And the majority of those who have checked have no idea whether what they're looking at is good, bad, or somewhere in the middle.

This guide gives you everything you need to understand your credit score — what it is, how it's calculated, what's a good number, why scores differ across bureaus, and what can be done when your score isn't where it needs to be.

What Is a Credit Score?

A credit score is a numerical summary of your credit file — a single number generated by a statistical model that predicts the probability you'll repay debts as agreed. Lenders use it as a quick first-pass filter when assessing applications.

Think of it this way: when you apply for a loan, a lender has thousands of historical loan outcomes to draw on. They know that applicants with certain score ranges tend to repay reliably, and applicants below certain thresholds tend to default at much higher rates. Your credit score is their shorthand for where you sit in that distribution.

The score itself is not static. It changes every time a new piece of information is added to your credit file — every on-time payment, every missed payment, every new credit application, and every default or removal.

The Three Australian Credit Bureaus and Their Score Ranges

Australia has three credit bureaus — and each generates its own score using its own model. You don't have one credit score in Australia. You have three, potentially all different. Check all three free reports at equifax.com.au, experian.com.au, and creditreport.com.au.

Equifax Score Bands (Most Widely Used)

What Goes Into Your Credit Score?

Since 2018, Australia has used Comprehensive Credit Reporting (CCR), which changed credit scoring significantly. Previously, only negative information (defaults, enquiries) was reported. Now, positive behaviour is also captured — 24 months of repayment history across all accounts.

The main inputs that drive your score are:

1. Repayment history — the single biggest factor. Every month, lenders who participate in CCR report whether each account was paid on time. Consistent on-time payment builds your score. A single missed payment drops it.

2. Defaults and court judgements — a listed default is the most damaging single event that can happen to a credit score. One default of $150 or more can drop a score by 80–200 points. Multiple defaults can push a score into the Below Average band entirely.

3. Credit enquiries — every time you apply for credit, the lender runs a hard enquiry that appears on your file for 5 years. One or two enquiries over several years is normal. Five or more in 12 months signals financial stress and actively reduces your score.

4. Types of credit — having a mix of credit types (home loan, credit card, personal loan) can be marginally positive. Relying solely on high-risk credit products (payday loans) is viewed negatively.

5. Account age and history — older accounts with consistent positive history contribute positively. Closing accounts you've had for years can temporarily reduce your score.

6. Credit utilisation — how much of your available credit you're using. Using 90% of a credit card limit signals financial stress even if you pay it off monthly.

Why Your Three Scores May Differ

It's common — and completely normal — for your Equifax, Experian, and Illion scores to differ significantly. The reasons:

• Not all lenders report to all bureaus. A default on your Equifax file may not appear on your Illion file.
• Each bureau uses a proprietary scoring algorithm — the same underlying data can produce different scores.
• The data collected by each bureau reflects which creditors they're contracted with.

This matters for loan applications because each lender checks one specific bureau. A lender who checks Equifax won't see what's on your Illion file, and vice versa. That's why you need to check all three — the bureau your lender uses is the one that determines your outcome.

Real Case Study: Oliver, Brisbane — Discovered a Score Difference of 312 Points Across Bureaus

Oliver, 44, from Brisbane, was preparing to apply for a small business loan. He checked his Equifax score — 671, firmly in the Good range. Confident, he applied through his bank. Declined.

The bank, it turned out, used Experian. Oliver pulled his Experian report and discovered his score was 359 — well into the Below Average range. The difference: his Equifax file didn't show a $540 default from a factoring company that had been listed two years earlier. His Experian file showed it clearly.

The ACS assessment found the default had been listed on his Experian file while a formal dispute with the factoring company was still open — a Credit Reporting Code breach. The factoring company had listed the default before the dispute resolution period had concluded.

We challenged it. The default was removed from his Experian file in 41 days.

Result: Oliver's Experian score moved from 359 to 683. He reapplied for the business loan and was approved. The three-bureau discrepancy that had derailed his original application no longer existed. He only paid when we succeeded. Subject to individual assessment; results may vary.

What a Good Credit Score Gets You in Australia

A one-band improvement in your Equifax score — say, from Average to Good — can translate to a 1–2% reduction in interest rates and access to products that were previously unavailable. On a $400,000 home loan, a 1.5% rate reduction saves approximately $185,000 over 30 years.

Frequently Asked Questions

What is a good credit score in Australia? On Equifax (the most commonly used bureau), a score of 661–734 is considered Good, 735–852 is Very Good, and 853+ is Excellent. Most mainstream lenders require at least Good (661+) for standard loan products. For competitive rates and easy approvals, aim for Very Good (735+).

How is a credit score calculated in Australia? Credit scores are calculated using your repayment history (on-time vs late or missed payments), defaults and court judgements, the number and recency of credit enquiries, the types of credit you hold, your account ages, and your credit utilisation across accounts. Each bureau weights these factors slightly differently in its proprietary model.

Can I have different credit scores from different bureaus in Australia? Yes — and this is normal. Each of the three bureaus (Equifax, Experian, Illion) holds its own version of your credit file and generates its own score. If a negative entry appears on one file but not another, the scores will differ. Always check all three, as different lenders check different bureaus.

How often does my credit score update in Australia? Credit scores update as new information is added to your file — which can happen at any time when a lender reports. Under CCR, lenders report monthly repayment data, so your score can shift every 30 days based on on-time or late payments across all accounts.

Does checking my own credit score reduce it? No. Checking your own score is a "soft enquiry" and has no impact on your score at all. Only "hard enquiries" — made by lenders when you formally apply for credit — affect your score, and those remain visible for 5 years.

What's the fastest way to improve a low credit score in Australia? The fastest path is removing entries that were listed in breach of the Privacy Act 1988 — defaults or enquiries that can be challenged. Successful removals produce immediate and significant score improvements (100–300+ points) in 30–90 days. Long-term rebuilding through consistent on-time payments produces 50–150 points of improvement over 6–24 months.

Your Score Is a Starting Point, Not a Verdict

Whatever your credit score is today, it can change. Defaults can be challenged. Enquiries can be removed. Payment history improves with time and good habits. The question is whether your current score is accurately reflecting your real credit behaviour — or whether unlawful listings are making it worse than it should be.

Australian Credit Solutions is ASIC-licensed (ACL 532003), lawyer-led by Principal Solicitor Elisa Rothschild, and has helped over 5,000 Australians understand and improve their credit files since 2014. No Win No Fee. 98% success rate on accepted cases.

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

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: How to Improve Your Credit Score → | How to Remove a Default → | Default Removal Services →