What is a credit score in Australia?
Definition
Credit score in Australia is a number from a credit reporting body that summarises your credit report and helps lenders decide whether to lend to you and on what terms.
- Category
- Identity
- Also called
- credit rating, credit score australia
- Last updated
Moneysmart, the Australian government's money guidance site, says lenders use your credit score (also called a credit rating) to decide whether to give you credit and on what terms. The score is worked out from your credit report: how much you've borrowed, how many credit applications you've made and whether you pay on time.
The scale
There is no single national scale. According to Moneysmart, Equifax scores run from 0 to 1,200, while Experian and illion use 0 to 1,000. Your report also shows a band such as low, fair, good, very good or excellent, which tells you where your number sits. A score from one bureau can't be compared directly with a score from another.
Getting your own
You have a right to a free copy of your credit report every 3 months. Experian and Equifax can hold different information about you, so it's worth checking both. Some providers show your score directly, others show only the report.
Why it matters beyond loans
A credit report is also a good place to spot identity theft. A credit enquiry or account you don't recognise can mean someone applied for credit using your name, and an applicant's personal details such as name, date of birth and address are exactly what thieves need.
Credit score vs. credit report
- The credit report lists your credit history: accounts, enquiries and repayment records.
- The credit score is a number summarising that report. Two bureaus can give you two different scores from similar data.
How to protect yourself
- 1
Check your credit report regularly
Request your free report from each credit reporting body at least once a year and look for accounts or enquiries you don't recognise.
- 2
Dispute errors in writing
If something on your report is wrong, ask the credit reporting body or the lender to correct it and keep a copy of what you sent.
- 3
Avoid paying credit repair companies
Moneysmart warns that credit repair companies may charge high fees for things you can do yourself for free.
- 4
Make your details harder to find
Thieves use name, date of birth and address to apply for credit. Serus finds where your address and phone number are listed and removes them.
See where your personal data is exposed
Serus finds it on data brokers and people-search sites and removes it.
Frequently asked
What is a good credit score in Australia?
It depends on the bureau, because the scales differ. Look at the band shown on your report (such as good, very good or excellent) rather than the number alone.
How do I check my credit score in Australia for free?
You can ask Experian or Equifax for a free credit report every 3 months. Some providers also show your score without charge.
Why are my scores different between bureaus?
Each bureau holds different data and uses its own scale, so the numbers won't match.
What lowers a credit score?
Late repayments, many credit applications in a short time and high borrowing can all count against you. Check each bureau's own explanation for details.
Sources
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