Key Takeaway
Australia has three credit bureaus and each uses a different scoring scale, so the same number can mean different things depending on where it comes from. Understanding which bureau generated your score is the first step to knowing where you actually stand and what you can do about it.
You Got a Number. Now What?
You've just logged into one of those free credit score apps, or maybe a broker mentioned a number over the phone. 650. You stare at it. Is that good? Bad? Somewhere in between? You type "what is a good credit score in Australia" into Google and suddenly you're drowning in conflicting information.
Take a breath. You're not alone. This is one of the most common questions we hear at Australian Credit Solutions, and the confusion is completely understandable. Unlike a school exam where 50% is a pass, credit scores in Australia don't follow one simple scale. There are three bureaus, three different ranges, and a 650 on one might be "good" while on another it's barely "average."
This guide will cut through the noise. By the time you finish reading, you'll know exactly what your score means, where it sits on the scale, and what you can do if it's not where you need it to be.
Why Australia Has Three Different Credit Scores
Here's the part that trips most people up: Australia doesn't have one credit score. It has three. That's because three separate credit bureaus collect and hold your financial data — Equifax, Experian, and illion. Each bureau gathers information from different credit providers, and each uses its own scoring model.
Think of it like three different teachers grading the same student. They're all looking at similar work, but they weigh things slightly differently and use different marking scales. Equifax scores you out of 1,200. Experian and illion both use a 0 to 1,000 scale, but their band thresholds are different.
Under the Privacy Act 1988, you have the right to access your credit file from each of these bureaus for free once every twelve months. We strongly recommend you do — because a default might appear on one file but not the others.
Credit Score Ranges: What the Numbers Actually Mean
Let's break it down bureau by bureau. Keep in mind that the band names vary slightly between providers, but the principle is the same: the higher your score, the lower the risk you represent to lenders.
Equifax Score Range (0–1,200)
Equifax is the most widely used bureau in Australia. Their scale runs from 0 to 1,200, which is unique — no other country uses this range.
Experian Score Range (0–1,000)
Experian uses a 0 to 1,000 scale and labels their bands slightly differently, using "Fair" instead of "Average."
illion Score Range (0–1,000)
illion also scores out of 1,000 but uses different band thresholds to Experian. Notice how the "Good" band starts much higher on illion's scale.
Not Sure Where Your Score Stands?
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Why Your Credit Score Actually Matters
A credit score isn't just a number on a screen. It directly affects the financial products available to you and how much they cost. Here's what a lower score can mean in real terms.
Home Loans
A score in the "good" to "very good" range is typically what mainstream lenders want to see. Drop below that and you might still get approved, but through a specialist lender charging a higher interest rate. On a $500,000 home loan, even half a percentage point more in interest can add tens of thousands of dollars over the life of the loan.
Rental Applications
More property managers are running credit checks as part of the rental application process. A default or low score can mean your application gets rejected, even if you can comfortably afford the rent.
Car Finance and Personal Loans
Interest rates on car loans and personal loans are heavily influenced by your credit score. A "below average" score might see you paying 15% or more on a car loan, while someone with an "excellent" score gets the same car for under 7%.
Insurance Premiums
Some insurers factor credit information into their pricing. A poor credit history can lead to higher premiums on car insurance, home insurance, and other products.
Common Myths About Credit Scores in Australia
There's a lot of misinformation floating around. Let's set the record straight on the ones we hear most often.
Myth #1: "There's one credit score that matters."
As we've covered, there are three bureaus and three different scores. A lender might check one, two, or all three. You need to know what all of them say.
Myth #2: "Checking my own score will lower it."
This is completely false. Checking your own credit file is a "soft enquiry" and has zero impact on your score. Only "hard enquiries" from lenders or credit providers affect it.
Myth #3: "Paying off a default removes it from my file."
Unfortunately, no. A paid default still shows on your credit file for five years from the date it was listed. The status changes to "paid," but the listing itself remains. The only way to remove it early is to have it investigated for compliance issues under the Privacy Act 1988.
Myth #4: "I need to be in debt to have a good credit score."
You don't need to carry debt. You do need some credit history. Having a credit card you pay off in full each month, or a small personal loan repaid on time, builds positive history without costing you in interest.
What Actually Affects Your Credit Score
Your credit score is calculated from the information on your credit file. Here are the main factors, roughly in order of impact.
Payment History
This is the single biggest factor. Every missed payment, default, or late payment drags your score down. Under comprehensive credit reporting (introduced in Australia in 2014), your repayment history for the last two years is recorded month by month. Even one missed payment can leave a mark.
Credit Enquiries
Every time you apply for credit — a credit card, personal loan, car finance, home loan — the lender runs a hard enquiry that appears on your file. Multiple enquiries in a short period signal desperation to lenders and lower your score. Each enquiry stays on your file for five years.
Age of Credit History
Longer credit history generally means a higher score. If you're young or new to Australia, your file might be "thin," which can pull your score down even if you've never missed a payment.
Credit Utilisation
If you have a credit card with a $10,000 limit and you're consistently using $9,000 of it, that hurts your score. Lenders like to see utilisation below 30%. Using your credit responsibly is one of the simplest ways to maintain a healthy score.
Negative Listings
Defaults, court judgements, bankruptcies, and debt agreements are the most damaging items on a credit file. A single default can drop your score by hundreds of points. If you suspect a listing on your file might be incorrect or improperly listed, a credit file analysis can identify whether it's eligible for removal.
How to Improve Your Credit Score
Whether your score is sitting in the "below average" band or you're in the "good" range and want to push higher, here are practical steps that actually work.
1. Check All Three Credit Files
Start by getting your file from Equifax, Experian, and illion. Look for errors, defaults you don't recognise, and enquiries you didn't authorise. Under the Privacy Act 1988, you have the right to request corrections to inaccurate information.
2. Challenge Incorrect or Improperly Listed Defaults
Not every default on your file was listed correctly. Credit providers must follow strict procedures under the National Credit Code before listing a default — including sending you a written notice and giving you 14 days to remedy the situation. If they didn't follow these steps, the listing may be invalid.
3. Pay Every Bill on Time
Set up direct debits for every recurring payment. Even a phone bill or electricity payment showing as "late" can now appear on your credit file under comprehensive credit reporting. Consistency is everything.
4. Reduce Credit Card Limits
If you have a $20,000 credit card limit you don't need, reduce it. Lenders look at available credit as potential debt. A lower limit also helps keep your utilisation ratio healthy.
5. Stop Applying for Credit You Don't Need
Every application creates a hard enquiry. If you've been rejected, don't immediately apply somewhere else. Each rejection followed by another application makes things worse. Pause, fix the underlying issue, then apply once with confidence.
6. Get Professional Help If Needed
If your file has defaults, court judgements, or other serious negative listings, trying to fix it yourself can be frustrating and slow. A free credit assessment can tell you within minutes whether your listings are eligible for removal.
What This Looks Like in Real Life
Composite Scenario
Sarah, 31, was trying to buy her first home. Her broker told her the bank had pulled her Equifax score and it came back at 487 — below average. She had no idea why. She'd always paid her rent on time and had never missed a phone bill.
When we ran a full analysis across all three bureaus, we found a $1,200 default from an old internet provider she'd cancelled three years earlier. The provider had never sent her the required default notice — they'd sent it to an address she'd moved out of two years before the default was listed. We also found four hard enquiries from comparison sites she'd used, not realising each one triggered a credit check.
The default was removed within five weeks because the required notice process hadn't been followed under the Privacy Act 1988. Sarah's Equifax score jumped to 671 — solidly in the "good" band. She got her home loan approved the following month.
Wondering What's on Your Credit File?
Our team will review your file from all three bureaus and tell you exactly where you stand — completely free.
What to Do Next
Now that you understand the scoring system, here's your action plan.
- Step 1: Get your free credit file from all three bureaus (Equifax, Experian, illion). You're entitled to one free copy per year under the Privacy Act 1988.
- Step 2: Check which band your score falls into using the tables above. Remember, the same number means different things on different scales.
- Step 3: Look for anything that shouldn't be there — defaults you don't recognise, enquiries you didn't make, incorrect personal details.
- Step 4: If you find negative listings, get in touch for a free assessment. We'll review your file, identify what can be challenged, and give you an honest answer about your options.
Your credit score doesn't have to be a mystery, and a low score doesn't have to be permanent. The first step is understanding where you stand. The second step is doing something about it.
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What Our Clients Say
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"After being rejected for a car loan due to an old default, I contacted Australian Credit Solutions. Within a few months, the default was removed and I got my loan approved!"
"The team went above and beyond to help me. They explained everything clearly and achieved a great result. I've already recommended them to friends and family."
"Australian Credit Solutions helped me fix my credit file and made the whole process stress-free. The team were professional, supportive, and kept me updated every step of the way."
"After struggling with credit issues for years, I finally found a solution. The team's expertise and professionalism made the whole process smooth and stress-free."
Elisa Rothschild
(BA/LLB)Principal Solicitor & Director
With over 12 years of experience in credit law, Elisa has helped thousands of Australians remove unfair credit listings and rebuild their financial futures. She leads Australian Credit Solutions' legal team with a focus on consumer advocacy and regulatory compliance.
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