How credit scores work in Australia

Australia has three main credit reporting bodies: Equifax, Experian and illion. Each holds a file on you and each calculates a score from it. The scores differ because the files differ — not every lender reports to all three.

What is actually on your file

• Repayment history — monthly, for the past two years, on credit accounts. This is comprehensive credit reporting, and it records on-time payments as well as late ones.
• Credit enquiries — every formal application, for five years. Not the outcome, just that you applied.
• Defaults — unpaid debts over $150 that are 60+ days overdue, where the creditor has given proper notice. Five years.
• Serious credit infringements — where a creditor believes you have evaded obligations. Seven years.
• Court judgments and bankruptcy — five years for judgments; bankruptcy stays for five years from the start or two years from discharge, whichever is later.
• Current accounts — open credit accounts, their limits and open dates.

What moves the number

Repayment history carries the most weight

Since comprehensive credit reporting began, on-time payments actively help rather than merely avoiding harm. Twenty-four consecutive on-time months is a strong signal, and it is the most reliable way to rebuild.

Enquiries matter more than people expect

Several applications in a short window reads as distress, regardless of outcome. Six enquiries in three months can itself trigger declines. This is the single most avoidable mistake, and it is why applying through a broker who knows lender policy is worth doing.

Credit limits count, not just balances

A $20,000 credit card limit with a zero balance still reduces your borrowing capacity, because lenders assess what you could draw. Closing unused cards before applying often increases how much you can borrow.

Age of file helps

A long history of managed credit is a positive. Someone with no credit history at all can find borrowing harder than someone with a modest but well-managed record.

Score bands, roughly

Bands differ between bureaus, but as a general guide on the Equifax 0–1200 scale: below 460 is considered low, 460–660 average, 660–734 good, 735–852 very good, and above 853 excellent.

Treat these as indicative. Lenders do not simply read your score and decide — they read the file behind it. A 550 score caused by one old default with two clean years since is a completely different application from a 550 caused by current arrears.

Fixing errors

If your report contains something wrong, you can have it corrected free of charge. Contact the credit reporting body or the creditor who listed it. They must investigate and respond, generally within 30 days. If you are unsatisfied, you can escalate to AFCA or the Office of the Australian Information Commissioner at no cost.

Be wary of paid "credit repair" services. They cannot remove accurate information, and the free complaint pathways are available to you directly.

Quick answers

How long do defaults stay on my file?

Five years from the date the default was listed, regardless of whether it is later paid. Paying it does not remove it, but the file is updated to show it as paid, which lenders view considerably more favourably.

Does checking my own score hurt it?

No. Accessing your own credit report is not a credit enquiry and has no effect on your score.

Why do my three scores differ?

Each bureau holds a slightly different file because not every lender reports to all three, and each uses its own scoring model.

Can I get a loan with no credit history?

It can be harder than having a modest positive history. Lenders have nothing to assess. Secured lending and a stable employment record both help.