A credit score can influence many financial decisions in Australia — from applying for loans to setting up a mobile phone plan. Many Australians want to understand how credit scores work, what lenders may review, and how their financial behaviour can affect their credit profile.

This guide answers 15 common questions about credit scores in Australia. It explains how scores are calculated, which credit bureaus lenders may use, and general steps that may help people better understand and manage their credit.

Later in this article, we’ll also outline how some lenders assess applications more broadly than just a credit score.

Apply now: https://www.credit24.com.au/au/apply/login

1. Does credit score matter in Australia?

Yes, credit scores are commonly used by lenders in Australia as part of the credit assessment process. While they are not the only factor considered, a credit score can influence:

• Whether a credit application may be approved
• The interest rate or terms that may be offered
• The amount a lender may be willing to provide
• Eligibility for products such as credit cards, loans, phone plans, or utilities
  

A higher credit score generally reflects a history of meeting repayment obligations, while a lower score may indicate higher perceived risk.

Credit scores may be considered in applications for:

• Personal loans
• Home loans
• Car loans
• Credit cards
• Mobile phone contracts
• Postpaid utilities

Understanding how credit scores work can help Australians make more informed financial decisions.

Learn more:
What Is a Credit Score?
https://www.credit24.com.au/blog/what-is-a-credit-score

2. Which credit score do banks use in Australia?

Australia operates with multiple credit reporting bureaus. Lenders may review one or more credit reports depending on their processes.

Common credit reporting bodies include:

Equifax
One of Australia’s largest credit bureaus. Many financial institutions reference Equifax data.

Experian
Often used alongside other credit reports for additional verification.

illion
Used by a variety of lenders, telecommunications providers, and utility companies.

Each bureau calculates scores differently, meaning an individual may have multiple credit scores.

In addition to credit reports, lenders may also consider other factors, such as:

• Income
• Employment history
• Existing debts
• Banking and repayment history
• Spending patterns
  

3. What’s the average credit score in Australia?

Average credit scores vary depending on the credit bureau and the scoring model used.

Typical ranges often fall within the fair-to-good categories.

Approximate averages sometimes reported include:

• Equifax: commonly around the mid-600 range
• Experian: often in the low-to-mid-700 range
• illion: commonly similar to Equifax ranges

Scores can change over time as credit activity across Australia evolves.

4. What are the credit score ranges in Australia?

Credit score ranges differ depending on the credit reporting bureau.

Equifax (0–1,200)

Excellent: 833–1,200
Very Good: 726–832
Good: 622–725
Average: 510–621
Below Average: 0–509

Experian (0–1,000)

Excellent: 800–1,000
Very Good: 700–799
Good: 625–699
Fair: 550–624
Poor: 0–549

illion (0–1,000)

Excellent: 800–1,000
Very Good: 700–799
Good: 600–699
Fair: 500–599
Low: 0–499

Different scales exist because each bureau applies its own scoring methodology.

Learn more:
What Is a Good Credit Score in Australia?
https://www.credit24.com.au/blog/what-is-a-good-credit-score-in-australia

5. What’s considered a good credit score in Australia?

A “good” score varies depending on the bureau:

• Equifax: 622–725
• Experian: 625–699
• illion: 600–699

A stronger credit profile may improve the likelihood that a lender considers an application favourably. However, lenders generally review several factors beyond a credit score, including:

• Income and employment stability
• Existing financial commitments
• Debt-to-income ratio
• Banking and repayment history
  

6. What’s the minimum credit score needed for a home loan?

There is no universal minimum credit score for home loans in Australia.

Some lenders may prefer applicants with scores in higher ranges, while others may consider broader financial circumstances.

Common factors lenders may review include:

• Deposit size
• Employment stability
• Savings history
• Debt levels
• Property details

Different lenders may apply different criteria.

7. What’s the minimum credit score needed for a car loan?

Car loan requirements vary between lenders.

Some lenders may prefer applicants with higher credit scores, while others may consider additional information such as income, employment, or whether the loan is secured against a vehicle.

Secured loans (where the vehicle is used as collateral) may sometimes have different eligibility criteria compared with unsecured loans.

8. What’s the minimum credit score needed for a personal loan?

Many lenders review credit scores alongside other financial information when assessing personal loan applications.

Factors that may be considered include:

• Income stability
• Existing financial commitments
• Bank statement information
• Repayment history

Some lenders may assess applications using a broader view of financial behaviour rather than relying solely on a credit score.

Credit24 provides online personal loans between $500 and $10,000, subject to lending criteria.

Apply now:
https://www.credit24.com.au/au/apply/login

Learn more:
Credit Score for Personal Loan
https://www.credit24.com.au/blog/credit-score-for-personal-loan

9. What’s the minimum credit score needed for a credit card?

Credit card eligibility can vary depending on the provider and product type.

Different cards may have different assessment criteria, such as:

• Entry-level or low-limit cards
• Standard credit cards
• Premium or rewards cards

Lenders may also assess income, repayment capacity, and existing debts.

10. What credit score do you need for a phone plan in Australia?

Many telecommunications providers perform credit checks for postpaid phone plans.

Depending on the provider, customers may be offered alternatives such as prepaid or SIM-only services if a postpaid contract is not available.

Credit enquiries may appear on a credit report when an application is made.

11. Which credit report do banks use in Australia?

Major Australian lenders commonly access data from credit bureaus such as:

• Equifax
• Experian
• illion

Some lenders may check more than one bureau and apply their own internal assessment models when reviewing applications.

Smaller lenders or credit unions may use different reporting systems or additional internal data.

12. Do buy now, pay later (BNPL) services affect credit scores?

Buy now, pay later (BNPL) services may interact with credit reporting in different ways depending on the provider and regulatory framework.

Examples include:

• Some providers may not report on-time payments
• Missed payments may be reported in certain circumstances
• Credit enquiries may appear when an account is opened

Regulatory changes in Australia may influence how BNPL activity appears on credit reports in the future.

To manage BNPL responsibly, consumers may consider:

• Limiting the number of open accounts
• Making repayments on time
• Monitoring repayment obligations across platforms

Reference:
https://moneysmart.gov.au/managing-debt/credit-scores-and-credit-reports

13. How long does negative information stay on your credit report?

Different types of information may remain on a credit report for different periods.

Default — around 5 years
Serious credit infringement — around 7 years
Bankruptcy — around 5 years or longer depending on status
Court judgments — around 5 years
Credit enquiries — around 5 years
Repayment history — around 2 years
Financial hardship indicators — around 1 year

Paying a debt may update its status on a credit report, which may help demonstrate that the obligation has been resolved.

Source:
https://www.equifax.com.au/personal/education/credit-score

14. What happens if you don’t have a credit score in Australia?

Some people may have limited or no credit history.

This can occur if someone:

• Is new to Australia
• Has never used credit products
• Uses only debit cards or cash
• Is a young adult starting their financial journey

Without a credit history, lenders may have less information available when assessing credit applications.

Some general steps that may help establish a credit profile include:

• Opening a small credit account
• Making repayments on time
• Maintaining manageable credit limits
• Keeping accounts active over time
  

15. How can you improve your credit score in Australia?

Improving financial habits may gradually influence a credit profile over time.

General practices that may support better credit management include:

• Paying bills and loan repayments on time
• Monitoring credit reports for accuracy
• Avoiding frequent credit applications
• Reducing outstanding debts where possible
• Maintaining consistent repayment history
• Using credit responsibly

More detailed guidance:

How to Improve Your Credit Score in Australia
https://www.credit24.com.au/blog/how-to-improve-credit-score-australia

Understanding your options when considering a personal loan

Some lenders assess loan applications using a range of factors beyond a credit score, such as income, repayment capacity, and financial behaviour.

Credit24 offers personal loans between $500 and $10,000, with fixed repayment schedules designed to help borrowers plan their repayments.

Applications can be completed online, and applicants may be asked to provide identification, income information, and bank statements as part of the assessment process.

Apply now:
https://www.credit24.com.au/au/apply/login

Disclaimer

IPF Digital Australia Pty Ltd, trading as Credit24, ABN 59 130 894 405. Australian Credit Licence 422839. The information in this article is general in nature and does not consider your objectives, financial situation, or needs. Lending criteria, fees, and charges apply. For product details, eligibility requirements, and full terms and conditions, visit www.credit24.com.au.