What is a good credit score?
What makes for a good credit score, and how can you get one?
Key takeaways
- A good credit score is anything above 500.
- Having a good credit score can help make it easier to get a phone plan or credit card.
What is a good credit score in Australia?
The free credit score you can get from Finder is sourced from Experian. In Experian's rankings, a good credit score is anything 500 or more. Here's the full list of current bands:
| Score band | Score range |
|---|---|
| Excellent | 800-1,000 |
| Great | 700-799 |
| Good | 500-699 |
| Fair | 300-499 |
| Low | 0-299 |
In the competing Equifax system, a good score is 661 or higher.
Credit reporting bureaus have different credit rating ranges for Australia, so what counts as a good credit score here will be different to the US or other countries that use credit scores.
Why do I need a good credit score?
A good credit score means you're more likely to get approved for a loan, credit card or phone plan. Having a good credit score can also bring other benefits.
- Upgrade your phone plan. Telstra, Optus and Vodafone all check your credit score for some types of phone plans. 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 a card which offers rewards. If you repay your full balance for each statement period, you won't have to pay any interest.
- 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.
- 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.
- Increased borrowing capacity. You may be able to borrow more money, but this will still depend on your other financial details.
- Get lower rates on personal loans. A range of personal loans and peer-to-peer loans offer interest rates based on your credit score.
Who decides what a good credit score is?
There are 2 major credit reporting bodies in Australia that calculate your credit score: Experian (which Finder partners with) and Equifax. Each bureau separately records the details listed on your credit report, and each uses a different credit rating system.
In the US, the maximum credit score is 850 regardless of which bureau you get it from. In Australia, Experian and Equifax both use a range of 0 to 1,200, but each bureau sets its own bands, so what counts as a good score depends on where you get it.
For example, a good score starts at 500 with Experian but at 661 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
How many people have a good credit score in Australia?
As of 2024, 79% of people have a good credit score or better, according to Finder data. This means 21% of people have an average or below average score. That figure is likely to change with a recalibration of credit score data in 2026.
What is a bad credit score?
Credit scores between 0 and 500 are generally considered below average. If you have a bad credit score, you may find it harder to get approved for a credit card, loan or other form of credit.
Thankfully there are things you can do to improve your credit score.
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.
Major credit infringements will stay on your credit report for a certain period of time and will continue to impact your credit score during this time.
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.
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