A good credit score can be anything above 500, but it really depends on which of the 3 credit reporting bodies you get it from - Experian, Equifax or Illion.
For example, a good Experian credit score is 625 or higher, whereas a good Illion score is 500 or higher and a good Equifax credit score is 661 or higher.
What is considered a "good" credit score?
Experian: 625 to 699 is a "good" credit score
Equifax: 661 to 734 is a "good" credit score
Illion: 500 to 699 is a "good" credit score
Credit reporting bureaus also have different credit rating ranges for Australia, so what counts as a good credit score here will be different to other countries such as the USA.
Who decides what a good credit score is?
There are 3 major credit reporting bodies in Australia that calculate your credit score: Illion, Equifax and Experian (which Finder partners with). Each bureau separately records the details listed on your credit report, and each uses a different credit rating system.
Unlike the US, where the maximum credit score is 850 regardless of which bureau you get it from, in Australia, the maximum credit score will vary based on the bureau, and can be as high as 1,200.
For example, your credit score will be a number between 0 and 1,000 with Illion and Experian but can be up to 1,200 with Equifax. What's always the same is that a higher score is better than a lower one.
Finder survey: How many Australians know what a good credit score is?
Response
Male
Female
Yes
65.65%
61.19%
No
34.35%
38.81%
Source: Finder survey by Pure Profile of 1016 Australians, December 2023
Do I have a good credit score?
Whether you have a good credit score will depend on both your actual score and which credit bureau you're using. You can use the table below to work out whether you have a good credit score with Experian, Equifax and Illion:
Credit score ranges in Australia
Here, we've listed the different credit score ranges for the 3 credit reporting bodies in Australia. If you get your credit score through Finder, it will match up with Experian's ratings.
Credit score range
Illion
Equifax
Experian
⭐⭐⭐⭐⭐ Excellent
800–1,000
853–1,200
800–1,000
⭐⭐⭐⭐ Very good
700–799
735-852
700–799
⭐⭐⭐ Good/Average
500–699
661-734
625–699
⭐⭐ Fair
300–499
460-660
550–624
⭐ Low/Below average
0–299
0–459
0–549
How many people have a good credit score in Australia?
Finder data shows 79% of people have a good credit score or higher. But 21% of people have an average or below average score.
Roughly two-thirds (69%) of Australians don't know their credit score, and 6% don't know what a credit score is. This is despite 45% of those who have their credit score saying it helped them make better financial decisions.
Score rating
Score range
% of people
Excellent
800-1000
15%
Very Good
700-799
46%
Good
625-699
18%
Average
550-624
6%
Below Average
0-549
15%
What can a good credit score help me do?
Ask for a home loan discount. You could use your credit score and other financial details to negotiate a better rate on your home loan, or even get certain fees waived.
Increased borrowing capacity. You may be able to borrow more money, but it will still depend on your other financial details.
Increase the chance of approval for rental properties. Your credit score could put you at the top of the list for landlords and real estate agents if they check it as part of their screening process.
Get lower rates on personal loans. A range of personal loans and peer-to-peer loans offer interest rates based on your credit score. A higher score means a lower interest rate, which could be as low as 4.45% depending on the personal loan.
Upgrade your phone plan. Telstra, Optus and Vodafone check your credit score for different types of phone plans. So a better score can help you get a better deal on phone plans and new phones.
Choose a credit card with rewards. If your financial situation is stable and you're considering getting a new credit card, your credit score could increase your chance of approval for one with rewards. And if you repay your full balance for each statement period, you won't have to pay any interest.
What is the average credit score in Australia?
Finder's research has found the average credit score in Australia is 735.
This is based on analysis of 59,016 credit reports in 2022. We also found the average has improved since 2021, when it was 711.
What is the average credit score by age?
According to our data, the older you are, the higher your credit score is likely to be. Baby boomers have an "excellent" credit score on average, with an average score of 846. Gen X have an average credit score of 760, which is considered a "very good" score, followed by gen Z at 741 and millenials at 713.
Average credit score by generation
Baby boomers: 846
Gen X: 760
Millennials: 713
Gen Z: 741
Average credit score difference between men and women in Australia
Highest average credit score: Men over 60 years of age (788.3).
Lowest average credit score: Women between the ages of 21 and 30 (671.7).
Average credit score by state
The ACT is the state with the highest average credit score, followed by South Australia and Victoria. Western Australia has the lowest average credit score.
State
Average score
ACT
763
NSW
741
NT
744
QLD
720
SA
753
TAS
729
VIC
745
WA
716
What is a bad credit score?
Credit scores between 0 and 500 are generally considered bad or low. This makes it harder to get approved for a credit card, loan or other form of credit.
If your credit score is low, Finder's guide on how to improve your credit score has simple ways to build up positive credit history.
How long does bad credit last?
Thankfully, bad credit doesn't last forever and as long as you're taking steps to improve your credit score, you should see your credit report get better over time.
How long a particular credit enquiry will continue to impact your credit score will depend on what kind of bad credit mark it is.
Your repayment history information stays on your report for two years, while credit enquiries, payment defaults, overdue accounts, and court judgements will stay on your report for five years. Overdue accounts listed as serious credit infringements will stay on your report for seven years.
If there's been an error you can get in touch with your credit bureau and get them to reverse it.
What counts as positive credit history?
Any activity on your credit report that show you're responsible with your finances can be seen as positive. For example, making payments on time is a simple way to build up positive credit history. But other factors can include the amount of credit you have access to, the length of time you've had your accounts and how often you apply for credit (less often is better).
Credit score ratings explained (From low to perfect)
Credit score rating
Why do you have this score?
What do lenders think?
1,000 or 1,200 (perfect score)
If your score is 1,000 for Illion or Experian or 1,200 for Equifax, you have a perfect credit score. Just 3.5% of all Australians achieve this score. It usually takes a lot of time to build up such positive credit history and it shows a high level of financial responsibility.
You'll have a strong chance of approval for most credit products and could be able to negotiate better lending terms than most people. Just remember that other factors are also considered when you apply.
800–999 (excellent)
A credit score around 800 is very solid and shows you have built a strong credit history. Financial institutions will offer you credit if it's within your ability to repay.
You could get better rates and terms than people in the very good or good credit score range.
700–799 (very good)
A credit score in this range indicates a history of responsibly managing loans, credit cards and other products.
You can still apply for most loans and credit cards, as long as you have the ability to pay off a new account.
500–699 (good)
A good credit score usually means you haven't made any large mistakes with your money, like defaults.
Securing a big loan will depend on the lender's criteria and other individual factors like your current employment and debts.
300–499 (fair)
A fair score shows there's room for improvement or a lack of credit history.
Lenders may focus more on other factors when you apply, such as proof of stable and regular income, bank statements or a form of security.
0–299 (low)
This is typically considered a low or "bad" credit rating, which may be due to late payments, defaults or other ongoing issues.
It could be difficult to get a new loan or another credit product. If you can, focus on improving your credit score first.
Credit score myths
Not all credit accounts are repaid in the same way. Some require multiple repayments a month (such as some short-term loans), some only require you to pay a minimum repayment (such as credit cards) and some require you to pay a specific amount to keep the account in good standing (such as personal loans).
On your credit file, your repayment history notes how many months your repayments are overdue. If you aren't overdue a "0" will be listed, if you are one month overdue a "1" will be listed, and so on. If you do not make the minimum payment, only make a partial payment or do not make every one of your required payments for that month, it will be considered an overdue payment. While one overdue payment will not tip you over into bad credit, too many of these will damage your credit score and will be a red flag to lenders.
Utility providers are not permitted to include information about whether your repayments are on time. This includes electricity, water and gas providers, telecommunications companies such as for your phone or Internet, or public transport or toll providers.
While utility providers cannot report on ongoing repayments, they can list a default if you fail to pay at all. If you have a debt that is over $150 and it is over 60 days overdue it can be listed as a default on your credit file. The utility provider will need to send you two separate notices to your last known address to advise you of the default before listing it on your file.
A credit provider is unable to give information to a credit reporting body about an overdue payment that it can no longer demand you pay. This is because the credit provider is restricted by the statute of limitations from enforcing the debt.
Every application you make for credit is listed on your credit file and affects your credit reputation. The more applications you make in a short space of time, the more of a risk you look like to potential lenders. It's important to space out your applications for credit and only apply for credit if you are certain you want to take on the account.
Finder research has found 69% of Australians don't know their credit score – and it only takes around 3 minutes to get it with the free Finder app.
Amy Bradney-George was the senior writer for credit cards at Finder, and editorial lead for Finder Green. She has over 16 years of editorial experience and has been featured in publications including ABC News, Money Magazine and The Sydney Morning Herald.
Credit scores are recognised in many countries, but can be calculated very differently. Find out how the USA, UK, China, India and Canada score credit, and how Australia's system compares.
Discover how you can use a credit card to build or repair your credit history.
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