Quick answer
There is no single national score. Moneysmart says scores run from zero to either 1,000 or 1,200 depending on the credit reporting body, and each report shows a rating band such as fair, good, very good or excellent. A score in the good band or above generally helps, but lenders also read the detail behind it.
Key points
- Moneysmart says scores run from zero to 1,000 or 1,200, depending on the credit reporting body.
- Your report shows a rating band, so compare the band rather than the raw number across bodies.
- Lenders do not rely on the score alone; they read the underlying listings and your income and security.
- A lower score does not rule out a loan, since lender policies differ.
- Scores can differ between bodies because each holds slightly different information.
So what is a good credit score in Australia?
The honest answer is that it depends on whose scale you are reading. Moneysmart says Australian credit scores run from zero to either 1,000 or 1,200, depending on the credit reporting agency, and that your credit report also shows a rating band, such as low, fair, good, very good or excellent. A score sitting in the “good” band or higher is generally a healthy sign. A score in a lower band is a prompt to look at what is behind it, not a final verdict.
That is the important shift. A credit score is a summary. Lenders read the report underneath, because the same score can come from very different histories.
Why do the scales differ?
Australia has several credit reporting bodies. Moneysmart names Experian and Equifax as the two main ones, and notes they can hold different information. Each uses its own scoring method and its own scale, so your number from one cannot be compared directly with a number from another.
Practical tips for reading them:
- Note the scale first. A figure out of 1,200 is not the same as one out of 1,000.
- Look at the band label the report assigns rather than the raw number.
- Compare trends over time within the same body, such as whether your score is rising or falling.
- Treat free score apps with care. Moneysmart warns to avoid any provider that asks you to pay or hand over card details for a score.
If you have not seen your reports yet, our guide on how to get your free credit report explains how to request them. The OAIC says each credit reporting body must give you one free copy of your report every three months.
What goes into a credit score?
Moneysmart lists factors that feed the score, including your repayment history, the number of credit applications you have made and the amount you have borrowed. The listings behind it matter too:
| What is on the file | How long it is kept (OAIC) |
|---|---|
| Repayment history | 2 years |
| Credit enquiries | 5 years |
| Defaults | 5 years |
| Court judgments | 5 years |
| Financial hardship information | 1 year |
| Serious credit infringements | 7 years |
A mix of on-time repayments, sensible limits and few applications tends to lift a score. Late payments, defaults and a rash of applications tend to lower it. Our guide on why your credit score may have dropped walks through the common causes.
Do lenders only look at the score?
No. A lender weighs the score alongside everything else about the application:
- Income and how it is evidenced.
- Living expenses and existing debts.
- Deposit, equity or other security.
- The purpose and size of the loan.
- The content of the credit report, including defaults and recent enquiries.
Two borrowers with the same score can get different answers because one has a paid default from years ago and strong income, while the other has recent late payments and thin savings. Lender policy varies too. A bank may apply a hard cut-off for a recent default, while a non-bank lender may consider the story. Our non-bank home loans page and non-bank lenders explained guide cover why.
What if my score is lower than I hoped?
Take a breath. A lower score does not close every door. It affects which doors are easiest to open. Sensible steps:
- Get reports from more than one body and read them line by line.
- Correct any errors. The OAIC says once a provider or body agrees information is wrong, it must take reasonable steps to correct it within 30 days. Our guide on fixing a mistake on your credit report shows how.
- Pay overdue accounts and keep repayments on time. Moneysmart says a missed payment is one not made within 14 days of the due date.
- Reduce unused card limits where it makes sense.
- Avoid unnecessary new applications while you rebuild.
None of that is a trick. Our guide on how to improve your credit score goes into the habits in more detail.
Who is this guide for?
- Borrowers planning a home loan, refinance or personal loan.
- People who saw a score in an app and are not sure what it means.
- Business owners whose personal file will be read for a business loan.
- Anyone comparing scores from different providers and getting confused.
- People recovering from a default or a tough year.
How do lenders treat different bands in practice?
We would be inventing numbers if we said “lenders need X”. What can be said in general terms:
- Strong files tend to have a wider choice of lenders and are more likely to be assessed on income, expenses and security alone.
- Middle-of-the-road files often work with many lenders but may attract questions about recent enquiries or a past late payment.
- Files with defaults or other adverse listings are treated lender by lender. Some decline them, some consider them with an explanation, and some specialise in them.
That last group is where many of our clients start. Our bad credit home loans, credit impaired loans and business loans with bad credit pages describe how we look at those situations.
A quick illustrative example
Two illustrative borrowers, no real people, both apply for the same kind of refinance. One has a good-band score, a long record of on-time repayments and no defaults. The other has a lower-band score because of a paid default from three years ago and two late payments last year, but strong income and plenty of equity. The first is assessed easily by mainstream lenders. The second may be declined by a strict policy lender but accepted by another that weighs the whole picture. The score did not decide the outcome. The match between file and lender did.
How does Ownright help?
We read your reports with you, explain what lenders will focus on and work out which lenders suit your file. Trevor Scott leads a team with more than 40 years of finance experience behind it, and we work Australia-wide from Knoxfield, Victoria. We do not promise approval, but we will tell you honestly what looks realistic and whether a short wait would put you in a stronger position.
Mistakes to avoid
- Comparing a score out of 1,000 with one out of 1,200.
- Paying a service that promises to boost your score.
- Chasing a number instead of fixing the underlying listings.
- Applying everywhere after a decline.
- Ignoring the second credit reporting body.
What would a lender like to see behind the number?
Think of a score as a headline and the report as the story. The details that tend to reassure lenders are:
- A long record of accounts paid on time, especially over the two years of repayment history the OAIC says is kept.
- Few recent applications, since the number of credit applications is a listed score factor.
- No defaults, or defaults that are old and paid.
- Credit limits that suit your income, because many lenders count the limit as a commitment even if you do not use it.
- Consistent personal details across your file.
The details that tend to prompt questions are late payments in the last year, a recent default, several applications in quick succession, high balances against limits and listings you cannot explain.
Can a good score still lead to a decline?
Yes. A loan decision also turns on serviceability (whether your income covers the repayments and living costs), the value and type of security, the deposit or equity, the purpose of the loan and the lender’s own policy. A great score with thin income evidence, or a property the lender does not like, can still end in a no. Our guide on loan serviceability explains how lenders work it out.
The reverse also happens. A borrower with a middling score but strong income and plenty of equity can be approved by a lender that is comfortable with the security. That is why we say the match between file and lender matters more than the label on the number.
Should I chase a particular score before applying?
Not really. Chasing a number encourages the wrong behaviour, such as closing every card at once or paying a service that promises a lift. A better target is a tidy, explainable file: errors corrected, overdue accounts settled, on-time payments set up and few new applications. If a score lifts as a result, good, but the aim is a file a lender can read without worry. Moneysmart’s advice to pay bills on time, keep card balances low, check your report yearly and limit new credit applications is a sound checklist.
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Frequently asked questions
What score do I need to get a home loan?
There is no universal cut-off. Lenders set their own policies and mostly read the listings behind the number, such as defaults, repayment history and recent enquiries, alongside income, expenses and deposit. A score in the good band or higher helps, but borrowers with lower scores are sometimes approved by suitable lenders.
Why is my score different at Equifax and Experian?
Each credit reporting body uses its own scale and method, and Moneysmart notes they can hold different information about you. Scores run from zero to either 1,000 or 1,200 depending on the body. Compare the rating band shown on each report rather than the raw number.
Is a score of 600 good?
It depends on the body and scale, which is why a raw number is hard to judge by itself. A figure that sits in the average band on one scale may sit in a different band on another. Look at the band your own report shows, and then at the listings behind it.
Do lenders see my credit score?
Lenders can obtain a credit report and often a score from the credit reporting bodies when you apply. They tend to put more weight on the content of the file, such as defaults, enquiries and how you have repaid accounts, than on a single number.
How quickly can I improve my score?
It depends on what is dragging it down. Fixing an error can be quick, because the OAIC says corrections must be made within 30 days once agreed. Building a clean repayment record takes months, since repayment history covers two years and defaults are kept for five.