What Is a Good Credit Score in Australia

what is a good credit score in Australia

If want to take out a loan to buy a new home or start your own business, you’ll need to know what is a good credit score in Australia and whether you fall in that category. 

Your credit score is used by lenders to decide whether or not to lend money to you. Scores start from zero to 1,200, and the higher your rating, the more chances you have of getting approved for a loan. 

Stick with this article and find out what constitutes as a good credit score in Australia.

What Is a Good Credit Score in Australia?

Generally, a very good credit score in Australia is anything over 700. If you have it, and if you are one of the 8 million people applying for a personal loan, your chances of getting approved increase. Plus, you become more likely to receive the best interest rates available.

That said, each credit bureau employs a different scoring system, so the actual numbers behind a good credit score vary from one credit score agency to the next. 

Here is a breakdown of what the three leading credit score providers (Equifax, Experian, and Illion) consider to be good credit score rating. 

Low0 – 5090– 5491– 299
Fair510 – 621550– 624300– 499
Average622 – 725625– 699500– 699
Very Good726 – 832700– 799700– 799
Excellent833 – 1,200800– 1,000800– 1,000

What is the average credit score in Australia?

An average credit score in Australia is anywhere between 500 and 699, again depending on which agency you look at. This range qualifies you for loans, though you may not be able to get the top interest rates. 

If your credit score falls between 650 and 500, i.e. what is considered fair,  there is still a good chance you will be eligible for credit, but the rates you get may be even less favourable. 

Recent findings on average credit score by age in Australia have discovered that men over 60 have the highest average score (788.3). Women aged 21 and 30 have the lowest average credit score (671.7) which is not surprising seeing as how female workers continue to be paid less than their male counterparts

What is a bad credit score?

A low credit score is anything below 500, or 299 according to Illion. In this case, you are very likely to get denied loans and credit cards, and you will probably receive high-interest rates if you do get approved. 

If you fall into this category, there is no reason to worry. There are still things you can do to improve a bad credit score. It may take some time, but it is well worth the effort. 

How Is Your Credit Score Calculated?

Your credit score rating is calculated by credit reporting agencies who use several factors, including:

  • The amount of money you have borrowed in the past;
  • Your repayment history, i.e. your ability to pay bills and repay loans and mortgages;
  • The number of credit applications you have made in the past;
  • Your personal circumstances, such as age, employment, address;
  • Bankruptcies, defaults on debt or court procedures in your name;
  • The length of your credit history.

Where can you check your credit score?

There are several agencies that provide credit reports and credit score summaries, the three listed above (Equifax, Experian, and Illion) being the biggest and most reputable around.

You can order a free credit report online or by contacting one of the providers by phone or in person. 

What Can a Good Credit Score Get You? 

If you have an average, very good or excellent credit score you can use it to:

  • Get a great deal on a loan, such as better interest rates. You might also get certain fees waived. 
  • Borrow more money
  • Be approved for rental properties more quickly and easily.
  • Apply for a credit card with rewards

Does Credit Score Matter in Australia?

Yes, credit score matters in Australia. A good credit score is a must as it shows lenders you are a responsible borrower and able to repay loans on time. A low credit score, on the other hand, may lead to higher interest rates and prevent you from getting approved for a loan.


1. What is the average credit score in Australia?

The average credit score in Australia is 673, but this varies depending on your credit history and even your gender and age.

2. Is 600 a good credit score in Australia?

No, 600 is not a good credit score in Australia. The average credit score in Australia is 673, so you’ll want to aim for a higher score than that if you’re looking to borrow money. There are some things you can do to improve your credit ratings, such as repaying loans and paying bills on time to clear a default from your credit history. You could also try to keep your credit card balances low and regularly check your credit report to dispute any errors.

3. What is a good acceptable credit score?

As mentioned above, each credit reporting agency has different calculation systems so what is considered an excellent or good credit rating depends on which provider you are looking at. 

So, what is a good credit score in Australia according to the leading credit reporting agencies?

  • Illion: 500–699
  • Experian: 625– 699
  • Equifax: 622 – 725

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