What Is a Credit Score in Australia? Complete Guide (2026)

Quick Answer: A credit score in Australia is a number between 0 and 1,200 (Equifax scale) or 0–1,000 (Experian/Illion scale) that summarises how creditworthy you appear to lenders based on your credit history. The score is calculated by one of three credit bureaus — Equifax, Experian, or Illion — using data from your credit file including defaults, repayment history, credit enquiries, and account types. Higher scores mean lower lending risk and better access to finance. Defaults and court judgements cause the largest score drops (100–200+ points). Under the Privacy Act 1988, negative entries that were listed unlawfully can be formally removed, restoring score.

Your credit score is one of the most important financial numbers in your life — and most Australians don't know theirs until it's already causing problems.

This guide explains exactly what it is, how it works, and what actually moves it in either direction.

The Three Australian Credit Bureaus

Australia has three credit bureaus. Each calculates its own separate score for you. Lenders may check any or all three — and a negative entry might appear on one bureau only.

Most home loan lenders use Equifax. This guide focuses primarily on the Equifax scale as it's most commonly referenced in lending decisions.

Equifax Score Bands — What Your Number Means

Most mainstream lenders want a score in the Good to Excellent range (661+) for standard approvals. Below 600, you're largely in specialist lending territory with substantially higher rates.

What Goes Into Your Credit Score

Your credit score reflects the data on your credit file. The main categories:

Defaults and negative listings (highest impact) A single default — even for a few hundred dollars — can drop your score 100–200 points immediately. Court judgements have similar impact. These entries remain for 5 years under the Privacy Act 1988 and are the single most damaging factor.

Credit enquiries (significant impact on thin files) Every time you apply for credit, the lender makes a hard enquiry on your file. Each stays for 5 years. Multiple enquiries in a short period signal financial stress. On a thin file (limited history), 4+ enquiries in 12 months can cause significant score reduction.

Repayment history under CCR (significant positive factor) Since Comprehensive Credit Reporting (CCR) was introduced in 2018, lenders share 24 months of your repayment history. Every on-time payment generates positive data. Consistent, on-time repayments across multiple accounts meaningfully support your score over time.

Credit utilisation (moderate impact) How much of your available revolving credit (credit cards, overdrafts) you're using. High utilisation — using 80%+ of your credit card limit — signals financial pressure. Keeping utilisation below 30% is better for your score.

Account age and mix (moderate impact) Longer credit history generally improves your score. A mix of account types (credit card + personal loan + home loan) is viewed more positively than a single account type.

How a Default Affects Your Score: A Real Example

One default from a $490 Optus bill can move you from Good to Average — costing you access to mainstream lending and adding 3+ percentage points to your interest rate.

On a $450,000 home loan over 30 years, the difference between 6.2% and 9.4% is approximately $280,000 in total interest.

Can You See Your Credit Score for Free?

Yes — all three bureaus offer free access:

• Equifax: equifax.com.au — free annual report + paid monthly score subscription (first month often free)
• Experian: experian.com.au — free credit score and report
• Illion: creditreport.com.au — free credit report

Get all three. Different information appears on different bureaus. Lenders may check any of them.

Real Case Study: Marcus, Adelaide — Score Restored After Single Default

Marcus was a 44-year-old electrician. He'd managed his credit well for years — home loan, car loan, credit card, all paid on time. His Equifax score sat at 724. Then a billing dispute with SA Power Networks went unresolved, and a $520 default was listed on his file.

His score dropped from 724 to 571 immediately. His bank told him he no longer qualified for the equity release he'd been planning. His mortgage broker suggested specialist lending at 9.1%.

He contacted Australian Credit Solutions. We requested the Section 21D notice from SA Power Networks. It had been issued while the billing dispute was active — a direct breach of the Credit Reporting Code, which prohibits listing defaults during unresolved disputes.

The listing was formally disputed. SA Power Networks acknowledged the breach in 19 days. The default was removed.

Marcus's Equifax score returned to 718 — within 6 points of where he'd started. His bank approved the equity release at 6.4%.

He only paid when we succeeded.

Get a free assessment from Australian Credit Solutions →

Frequently Asked Questions

What is a good credit score in Australia? On the Equifax scale (0–1,200), a Good score is 661–734. Very Good is 735–852. Excellent is 853+. Most mainstream lenders are comfortable from the Good band upward. A score below 660 limits your options and typically means higher interest rates.

How long does it take to build a good credit score in Australia? Starting from zero, a meaningful score typically appears after 3–6 months of account activity. Reaching the Good band (661+) through positive repayment history alone usually takes 2–4 years from scratch. Removing negative entries — if any exist — can accelerate this dramatically, with score improvements of 100–200+ points achievable in 30–90 days.

Does your credit score reset every year in Australia? No — your credit score doesn't reset on any schedule. It updates when new information hits your file. Positive repayment data rolls over 24 months (under CCR). Negative entries stay for 5 years. There is no annual reset.

Is 700 a good credit score in Australia (Equifax)? Yes — 700 is in the Very Good band (735–852 is Very Good, 661–734 is Good). A score of 700 gives good access to mainstream lending, though some lenders may still want to see specific history details. It's meaningfully above the threshold where specialist lending becomes necessary.

Why do I have different scores from different bureaus? Each bureau calculates your score independently using different data. A lender who reports to Equifax but not Experian will create different data across the two bureaus. A default appearing on one bureau may not appear on another — which is why checking all three matters.

Can a credit score be wrong in Australia? Yes — credit scores can be affected by inaccurate information on the file. Wrong addresses, accounts that don't belong to you, defaults that were listed unlawfully, and incorrect amounts all affect your score incorrectly. Under the Privacy Act 1988, you have the right to dispute inaccurate information, and the bureau and creditor are obligated to investigate and correct it.

Check Your File and Score

A free assessment gives you a complete picture — every negative entry, every enquiry, and an honest view of what's removable and what's achievable for your score.

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 improve your credit score in Australia
• How to remove a default from your credit file
• Default removal services Australia

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.