Find out where you sit on the "bad credit" scale – and how to move up.
There are many bad credit listings you can have on your credit file, as well as a variety of positive listings and personal details. Using all of this information, your risk as a borrower is calculated and represented as a credit score. If you have any negative listings on your file or you have engaged in risky borrowing behaviour, such as making multiple credit applications in a short space of time, you might have a bad credit score. Find out more about the credit score ranges in this guide.
What is a credit score?
A credit score is a number that represents the information in your credit report. The number will be different depending on the bureau you receive your score from. Credit scores from Experian are between 0 and 1,000 and Equifax scores are between 0 and 1,200. You can see a breakdown of these scores below.
The higher your number is, the less risky a borrower you are determined to be. There are five credit score ranges, from excellent credit to below average credit.
What is a bad credit score?
A bad credit score is anything that falls in the lower ranges. See the ranges for Experian and Equifax below to see where your score sits.
|Fair / Average||550-624||510-621|
|Weak / Below average||0-549||0-509|
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How can I improve my credit score?
- Check your credit report. Improving your credit position starts with understanding where you're at. You can check your credit report for free with finder and receive updates every month. You'll also receive your credit score.
- Fix inaccuracies in your report. If there are any mistakes in your report it's important to have them rectified. Contact the credit reporting body you ordered your report from and report the mistake. You can also get in touch with the credit provider directly.
- Avoid making multiple credit applications. If you're denied credit and you can afford to wait, you can consider waiting until you make another application. Having multiple credit applications listed on your file can further damage your score and be a red flag to lenders.
- Get free financial advice. You can contact the free financial counselling hotline on 1800 007 007 if you're looking for advice on your finances.
- Get advice on your credit file. There are companies that will give you personal advice on your credit file. Find out what services are on offer from The Credit File Experts.