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What is a good credit score in Australia?

To know what is considered a good credit score, it’s important to understand what is a credit score and how it works. This is because your credit scores depend on several factors and differ for each credit rating agency. Read on to understand what is a good credit score in Australia, how you can fix yours and how you can potentially borrow money without a good credit score.

What is a good credit score?

It’s difficult to provide a fixed definition for a good credit score since it depends on several factors, like:

  • Why do you require it?
  • What credit product do you need?
  • Which financial institution you’ve approached?

In Australia, credit scores are calculated by credit rating agencies using different methods, so their scores may vary slightly. Generally, on Equifax, a credit score above 661 is recognized within the good credit score range. On Experian, that’s anything above 625, and on Illion it’s above 500. 

A good credit score indicates you’re a responsible borrower. This could increase your chances of getting approved for loans at good interest rates and higher credit limits. While the lenders prioritize credit scores to check the creditworthiness of the borrower, they also consider other factors to determine your repayment capacity, like:

  • Repayment history
  • Current and past debts
  • Employment history
  • Total income

You should always check your credit report regularly and address any errors or inaccuracies to maintain a good credit score.

Credit24: personal loans for different credit scores

Credit score ratings

What is a good credit score for Equifax, Experian, and Illion? Let’s break it down with the help of a credit score scale:

Equifax¹ Experian² Illion³
Excellent: 853-1200 Excellent: 800-1000 Excellent: 800-1000
Very good: 735-852 Very good: 700-799 Very good: 700-799
Good: 661-734 Good: 625-699 Good: 500-699
Average: 460-660 Average: 550-624 Room for improvement: 300-499
Below average: 0-459 Below average: 0-549 Below average: 1-299

Is 800 a good credit score?

For credit rating agencies like Experian and Illion, 800 is generally an excellent credit score.⁴ For Equifax, it’s considered a very good credit score. This score indicates a strong borrowing history and signals to lenders that you’re a low-risk borrower. It increases the possibility of quick and easy credit approval with highly favourable terms and conditions.

However, your credit score is not the sole determinant of your creditworthiness. The lender will also consider other factors such as your total income, age, employment history and debts before approving your loan application.

Are 600 and 700 good credit scores?

A credit score between 600 and 700 is generally considered good in Australia. This score reflects a good credit history. Lenders tend to view individuals in this range as dependable borrowers. Equifax and Experian consider this range between average and good credit rating. For Illion, any number between 600 and 700 falls within a good and very good credit score range.

Average credit score

As per Equifax, the average credit score in Australia ranges between 460 and 660. For Experian, it’s between 550 and 624, and for Illion, your credit score has room for improvement if you have a credit score in the range of 300 and 499. 

If you fall within this range, you need to take steps to improve your financial habits, like making payments on time, reducing debts, and routinely monitoring your credit report for errors. This will help you improve your credit score and get borrowings at favourable interest rates.

What is the best credit score?

An excellent credit score has different definitions depending on the credit rating agency. 

  • Equifax: 853-1200, 
  • Experian: 800-1000, and 
  • Illion: 800-1000

It can be extremely difficult to achieve such a high credit score, but it’s not impossible. Even if you don’t have a credit score in this range, you can easily get good terms for your loans as long as your number is within the good credit score range.

But do you really have a good credit score?

While credit score ranges provide a general indication of your creditworthiness, what truly matters is if the lenders consider you a less risky borrower. Each lender may have slightly different criteria for evaluating creditworthiness, so your chances of getting a loan and receiving a good interest rate can vary depending on the lender and the specific loan or credit product you’re applying for.

Before applying for a loan, you should check quotes from several lenders to determine your probability of approval with a low-interest rate.

When do you need a good credit score?

You need a good credit score when you’re applying for a loan. Lenders use credit scores to assess the overall risk of lending you money and to determine the interest rates and terms of the loan. A score within the good or higher credit score range will likely land you better loan terms, lower interest rates, and increased chances of approval. 

Some products that might require a good credit score are:

  • Home loans
  • Car loans
  • Personal loans
  • Credit cards
  • Mortgages ⁵

If you need to borrow money, consider applying for a Credit24 personal loan. You may be able to get approval even if you don’t have a good credit score.

Will I get a better interest rate with a good credit score?

Yes, in some situations you’ll get a better interest rate if you have a good credit score. Lenders use your credit score as part of their credit assessment criteria. A higher credit score means lesser risk for the lender and a better interest rate for you. 

With an excellent credit score, you could get loans at the lowest possible interest rates in the market. A very good or good score may not get rates as good as what you’d get with an excellent credit score but they’ll still be on the lower side. Any score that’s average or below average will give you higher rates. In some cases, traditional lenders may even deny your loan application. 

Credit scores are not the sole factors that determine your interest rates. Some other factors that can have an impact are: 

  • Your income
  • Your employment status
  • Purpose of the loan

Will a loan application impact my credit score?

Your loan application can impact your score depending on whether it leads to a hard or soft credit check. A soft credit check is an inquiry about your credit report which can be either initiated by you or a company. This inquiry can take place even if you haven’t applied for any credit. They are often done for pre-approval loan offers or a background check.

In case the lenders run a hard inquiry on your credit, it shows up on your credit report. This causes your credit score to drop a bit. Therefore, be cautious and strategic with your plans to apply for a personal loan.

How to get a good credit score in Australia?

Several factors can impact your credit score. Some of them are:

  • Number of accounts 
  • Details of past credit or loan
  • Length of credit history 
  • Details of credit enquiries
  • Repayment history
  • Information regarding court judgments, bankruptcy, or insolvency
  • Negative entries

You can take steps to maintain and improve your credit score. Here’s how to build a good credit score: 

  • Pay all your bills, dues, rent, and loan instalments on time. 
  • Check your credit report regularly to see where you stand and make sure it doesn’t have any errors. 
  • Limit the number of credit applications you make. Multiple credit applications in a short period can severely affect your creditworthiness.

You’re legally entitled to one free credit report every 3 months.⁶ You can either approach the credit rating agencies for your report or get it generated from an online credit score provider.

Credit24: personal loans for different credit scores

Thinking of applying for a loan? Here’s why Credit24 can be a good option:

  • Borrow between $500 and $10,000 online
  • The process is fast and you get a quick responses.
  • Loans are personalised according to your credit history and payment frequency  
  • You get same-day payment, if your application is approved
  • Repayments are fixed upfront
  • You can check an estimation on our online calculator without affecting your credit score

Learn more about Credit24 personal loans

IPF Digital Australia Pty Ltd, trading as Credit24, ABN 59 130 894 405. Australian Credit Licence 422839. The information in this article is of general nature and does not take into consideration your objectives, financial situation or needs. Lending criteria, fees and charges apply. For more information about our products, eligibility criteria and terms and conditions, please visit


  1. Equifax, What Is a Good Credit Score?
  2. Experian, Experian Credit Scores
  3. Illion Credit Check, About credit scores
  4. Canstar, What is a good credit score in Australia?
  5. What is a good credit score in Australia?
  6., Credit scores and credit reports