How to understand your Equifax Score

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 is  good credit score australiaWhat'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.

good credit score

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.

How to repair your credit

Frequently asked questions about your credit history

Paying your bills on time and limiting your credit applications both help improve your Equifax Score.

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.

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52 Responses

  1. Default Gravatar
    shaeFebruary 6, 2018

    credit score 400 & currently receiving chance anywhere correct??

    • Staff
      JoshuaFebruary 14, 2018Staff

      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 –

      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 –

      I hope this helps. Should you have further questions, please don’t hesitate to reach us out again.

      Have a wonderful day!

      Joshua Infantado

  2. Default Gravatar
    AnthonyJanuary 8, 2018

    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

    • Staff
      JhezelynJanuary 13, 2018Staff

      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.


  3. Default Gravatar
    ElizabethDecember 11, 2017

    How close is this to actually getting my score through VEDA themselves

    • Staff
      MayDecember 12, 2017Staff

      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.


  4. Default Gravatar
    MargaretSeptember 8, 2017

    What is credit score?

    • Default Gravatar
      JonathanSeptember 8, 2017

      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.


  5. Default Gravatar
    JulieJune 12, 2017

    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

    • Staff
      DanielleJune 13, 2017Staff

      Hi Julie,

      Thank you for contacting 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.


  6. Default Gravatar
    PeterMay 30, 2017

    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?

    • Staff
      LouMay 30, 2017Staff

      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.


  7. Default Gravatar
    JohnFebruary 17, 2017

    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!

    • Staff
      LouFebruary 17, 2017Staff

      Hi John,

      Thanks for reaching out.

      Please note that we are, 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.


  8. Default Gravatar
    BobJanuary 27, 2017

    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.

    • Staff
      MayJanuary 31, 2017Staff

      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.


  9. Default Gravatar
    JohnJanuary 4, 2017

    Hello! I was thinking, if someone never applied and dealt with a credit provider before and recently got a job and planning to get a post-paid phone contract.

    For someone like that, what would be their “fresh” credit rating be? Let’s say if checked with Veda.

    Thank you and hope for your prompt reply.

    • Staff
      MayJanuary 6, 2017Staff

      Hi John,

      Thanks for your question.

      If you have not made credit enquiry or held a utility account in the past, there may not be a credit file to be checked under your name. So that means no credit score will be generated for you.

      Just an overview, your credit score is basically calculated by credit bureaus such as Veda using the information on your credit file. The higher your credit score, the less of a risk you’re determined to be. Veda uses the “comprehensive version of scoring,” which means that more data sources are used to calculate your score. In particular, it uses your positive behaviour, such as regular repayments.


  10. Default Gravatar
    RonNovember 14, 2016

    I signed up to Credit Savvy alerts sometime ago. I have had a score of 742 (very good) every month since signing up. I get my alert this month and score has dropped 311 to 431 (below average). Nothing has changed on my file, I have had no credit enquiries for 4 years and ALWAYS pay my bills before they are due and I’m advance by 12 months on my personal loan. The only thing that has changed is that I have turned 50. It feels like I have been unfairly assessed and my credit is now in the toilet. Can you help me understand why this might have happened?

    • Staff
      LouNovember 14, 2016Staff

      Hi Ron,

      Thanks for reaching out.

      We understand the importance of credit scores to our users. That is why aside from helping you get a free credit score, we also have a page where you can request a free credit report. With a credit report, you’ll have an idea how you got a certain score.

      I hope this helps.


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