Understanding how your Equifax Score works so you know where you stand.
Your credit report contains a summary of your financial history, and your credit score is a reflection of how reputable that history is. Equifax (formerly Veda), the country's largest credit reporting bureau, scores you with its Equifax Score, a number between 0 and 1200. The guide below takes you through everything you need to know about this score, how it is calculated and how to know if your score is "good".
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What's a good credit score?
Your Equifax Score (formerly VedaScore) will be a number between 0 and 1200. A "good" credit score is between 622 and 725, a "very good" score is between 726 and 832 and an "excellent" score falls between 833 & 1200.
How does Equifax calculate your score?
There are a number of different credit scoring systems used by credit bureaus. These scores factor the information listed on your credit file and reflect your ability to repay credit. An Equifax score is calculated by Euiqfax, Australia’s largest credit bureau. Your score helps lenders assess your credit application when you apply for a loan or line of credit. Similar to a tool that ranks your risk, all credit information is used to predict the outcome of your loan within the next 12 months.
In addition to your Equifax Score, lenders will apply their own lending criteria. This is why you shouldn’t completely rely on your score as an indicator of whether you can apply for the credit or not.
How can I find out my Equifax Score?
You can find out your Equifax Score for free with finder. You can visit this page to receive your free credit score.
The difference between good and bad credit
Understand your credit score
Your Equifax Score is displayed as a number and indicates the likelihood of an adverse event being recorded on your credit file in the next 12 months. An adverse event can be a range of "bad credit" listings such as a default, a bankruptcy or a court judgement.
The higher your Equifax Score, the less likely it is an adverse event will be recorded on your file and the less of a risk you will appear to lenders. The lower your credit score the riskier you will appear as a borrower.
- Below average to average (0-509). It's more likely an adverse event will be recorded on your file in the next 12 months. You are in the bottom 20% of Equifax's credit-active population.
- Average (510-621). This score suggests that it's likely that you will incur an adverse event in the next 12 months. Your score places you in the bottom 21-40% of the credit-active population.
- Good (622-725). Adverse events are less likely to be recorded for the next 12 months. You fall in the mid-range (41-60%) of Equifax's credit-active population.
- Very good (726-832). Unfavourable events are unlikely to be recorded onto your credit file within the next 12 months. Your score places you in the second-highest percentile range of the credit-active population (61-80%)
- Excellent (833-1200). Adverse events are highly unlikely to happen within the next 12 months when compared to the average Australian. The odds of no adverse events occurring on your credit file in the next 12 months are five times better than the population average and you are in the top percentile range (81-100%).
How is your Equifax Score calculated?
Your credit score is calculated using the information on your credit report and there are a number of factors that take into account your risk as a borrower. These include:
- Type of credit provider. There may be different levels of risk when approaching different lenders. A non-traditional lender may have a different level of risk than a bank or credit union.
- The size of credit requested. Both the type and size of the loan or credit limit you’re requesting can affect your Equifax Score. Mortgages have a different level of risk compared to credit cards.
- The number of credit enquiries. Every time you apply for a credit product, the credit provider obtains a copy of your file and the application is noted. If you've shopped around for credit and applied at a number of places in one space of time, it flags you as a higher risk. The pattern of credit enquiries over time also affects the level of risk.
- Directorship information. If you’re a director or proprietor, it may impact your Equifax Score so it’s important to check both the individual and commercial sections of your credit file.
- Age of credit file. The date your credit file was created. A new file may indicate a different level of risk compared to an older file.
- Personal details. Your VedaScore will consider your age, length of employment and how long you’ve lived at your current address.
- Default information. Any personal or business credit such as overdue debts, serious credit infringements or clearouts could negatively affect your VedaScore.
- Court writs. Default judgements or court writs may convey you as an increased risk and negatively impact your VedaScore.
Frequently asked questions about your credit history
How can I improve my Equifax Score?
Paying your bills on time and limiting your credit applications both help improve your Equifax Score.
How does my Equifax Score impact my credit application?
Your Equifax Score ranks the level of risk you are compared to the rest of Australia. It could be used to help credit providers assess your ability to pay the loan back and whether or not to approve your application.
Hi,
Just an enquiry I have made 2 personal loan and 4 credit card enquires last year as my mother had passed away and I was concerned as to how I would pay for her affairs. My credit score is 656 and in the last few days I have paid a 6k credit card off in full with no outstanding debts.
It is my intention to go for a home loan with my partner in the next 6 months. I have an inherited investment property currently rented out as Im not working as im a SAHM. Will the banks even consider me?
Thanks for taking the time to read and respond.
Hi Kath,
Thanks for reaching out.
Purchasing a property with your partner provides you with the distinct advantage of increasing your borrowing power during the home loan application. You may check this guide to learn about how to prepare for a joint property purchase.
The same page will allow you to compare lenders and their offers, you just need to carefully evaluate your strategy and the type of home loan and features that will suit your financial situation. As we do not represent the companies featured on our pages, you may need to check on the lenders’ eligibility requirements to make sure that you qualify.
Alternatively, you may speak with a mortgage broker for you to get specialised advise.
Cheers,
Joanne
How long after you have had applications do you leave it to get a better score
Hi Jodie,
Thank you for getting in touch with finder.
For any credit enquiry, the time frame that it stays in your credit file is 5 years. There are two main types of credit enquiries: “soft” enquiries and “hard” enquiries. A soft enquiry is recorded any time you request a copy of your credit file, and doesn’t really have an impact on your credit score. A “hard” enquiry refers to any request for your credit file that’s made by a third party, such as a lender. For instance, every time you apply for a line of credit, such as a card or personal loan, the lender you’ve applied to will submit a request for your credit file. This request is recorded on your credit history as a “hard credit enquiry”. While a few of these enquiries is usually fine, too many hard enquiries on your credit file can suggest to lenders that you are not able to manage credit accounts responsibly, and may lead to a declined application.
I hope this helps.
Have a great day!
Cheers,
Jeni
So I have a score of 225 when will that score get better as I have no defaults but can’t credit I have 5 credit enquiries
Hi Jodie,
Thank you for bringing that questions up here in finder.
As a friendly reminder, while we do not represent any company we feature on our pages, we can offer you general advice. To find out when the score get better, I suggest that you check it with Equifax. You may have no defaults but there are other factors that may pull down your score like type of credit provider, the size of credit requested, directorship information, age of credit file, personal details and court writs.
You may want to know ways to improve your credit rating by checking out this link.
I hope that helps.
Cheers,
Jeni
credit score 400 & currently receiving Centrelink..no chance anywhere correct??
Hi Shae,
Thanks for getting in touch.
If you are looking for a personal loan given your circumstance, you may like to check out this guide – https://www.finder.com.au/loans-for-people-on-centrelink-payments.
So even when you have bad credit, some lenders will still consider your application. They would be taking into account your overall financial situation aside from your credit history when considering your application.
On that page, you can see lenders with green checks. Those are the possible lenders you can contact to discuss your options/eligibility.
Meanwhile, in case you want to know what else you can do to improve your credit rating, please go to this page – https://www.finder.com.au/improve-your-credit-score
I hope this helps. Should you have further questions, please don’t hesitate to reach us out again.
Have a wonderful day!
Cheers,
Joshua Infantado
I have applied for a NAB personal loan and is declined, they told me it has something to do with veda, credit score. Can you please help me with this? Thank you
Hi Anthony,
Thank you for your comment.
Banks and lenders usually check your credit score when applying for a loan as part of the assessment. If you have not accessed your credit score yet, you can actually access through us for free. Just follow our step-by-step guide here. Additionally, to understand how you got the score, you may also access your free credit report through us. Please note that it may take up to 10 days for you to receive your credit report.
Regards,
Jhezelyn
How close is this to actually getting my score through VEDA themselves
Hi Elizabeth,
Thank you for your inquiry.
We aren’t actually sure the difference of your score if you’ll get it directly from Equifax (formerly Veda). Although the score you got from our site wass also from Equifax, it may possibly change when you generate it again directly through them as scores would depend on the information on your credit file. As that information changes every now and then, there is a possibility as well that you’ll get a different rating, as to how much, that we’re unsure of.
Cheers,
May
What is credit score?
Hello Margaret,
Thank you for your question.
Your score is a credit health measure being calculated by a credit bureau, and is often used by lenders to help decide whether to approve you for new credit cards, personal loans and home loans. Most commonly known as Equifax Score (previously known as VedaScore) which is from Australia’s largest credit reporting bureau Equifax. This is a number between 0 and 1,200, on which the higher your number, the better your credit position is.
We have a credit score page should you wish to know more.
Hope this helps.
Cheers,
Jonathan
My credit score is now 560 after coming out of being bankrupt a few years ago. The last few things drop of my credit report shortly. As my report will be blank (no defaults or credit enquires etc) will my credit rating be excellent? or will my past still be taken into account? or do I need to borrow to build it up?
I get monthly credit reports for Equifax already
Hi Julie,
Thank you for contacting finder.com.au. We are a comparison website and general information service, we’re more than happy to offer general advice.
After being bankrupt, your name will be on the National Personal Insolvency Index (NPII) permanently, with a record of how your bankruptcy was resolved. It will also be listed on your credit history for up to five years, or longer depending on the circumstances. But don’t worry, there are ways on how you can improve your credit score. You may refer to this page to learn how.
I hope this helps.
Cheers,
Danielle
I have received a credit report but have noticed my name is connected to 2 companies I know nothing about.How can I get these removed?
Hi Peter,
Thanks for your question.
If you have identified an enquiry you don’t remember approving, contact the lender associated with it and get more information about it. You can then submit a request for incorrect details to be removed. For example, if you got your credit file from Equifax, you would submit a request to Equifax to have incorrect listings removed.
For more information, you can check our guide here.
Cheers,
Anndy
My credit score was 890 since Veda changed their system a month or so ago , I checked and it went down to 780 nothing had changed at all in anyway I haven’t applied for credit etc., I’m a Veda customer and this new system is crap.
Please explain why my score has dropped?
As I haven’t applied for any credit to affect score or any late payments at all….
Not happy!
Hi John,
Thanks for reaching out.
Please note that we are finder.com.au, a financial comparison and information website that helps consumers make better decisions. We are not Veda.
Aside from credit card applications, there are other factors that can affect your credit score. You can visit this page for more information.
Also, to understand your credit score, you may request a free credit report through this page.
I hope this helps.
Cheers,
Anndy
This seems kind of silly. You get punished for applying for debt and you get punished when you don’t already have debt.
I am new to the country and have NO major debt but my score is in the 300’s. That seems ludicrous to me. What can I do to improve my score? I have a cell-phone contract and a credit card with a small limit currently but I was declined when I applied for a new credit card with out being given a reason.
Hi Bob,
Thank you for your inquiry.
Basically, your credit rating or score is an indicator of whether you’ll get the credit that you want. A good credit report will reflect a good credit rating as well where your report does not have black marks like late payments and credit defaults.
Please note though that a number of different credit scoring systems used by credit bureaus. So for Veda, for instance, they use the new ‘comprehensive’ version of credit reporting uses more data sources to calculate your score. In particular, it uses your positive behaviour, such as regular repayments. The older version of scoring is a ‘negative’ version, which doesn’t take into account positive behaviour with calculating your score. So some other providers may be using the negative scoring version.
Basically, you can improve your score by spacing out or limiting your credit enquiries, paying all your debts on time and clearing your credit card debt in full every month. Same is true for utility bill payments and rent payments, which should also be made on time. You can more find tips on improving your score on this page.
Cheers,
May