Keeping track of your credit history is essential if you are planning on taking any finance out in the future. Not only do you want to make sure all the information is correct but it’s good to know what score you have before you apply for finance. Learn how to check your credit score in Australia so you can stay on top of your finances and get the best chance at approval.
Overview:
- How to check your credit score
- Where to check credit score for free
- What is a credit score?
- Why are credit scores important?
- What is a good credit score in Australia?
- How to improve your credit score
- FAQs
How to check your credit score
You can check your credit report online or over the phone through one of Australia’s credit reporting agencies. Credit bureaus in Australia are required by law to give you free access to your consumer credit report every 3 months. You can access it more often than this if you want to, but you may be charged a fee.
Other reasons you can access your credit report for free:
- Information in your credit file has been corrected
- You have had a loan application declined in the past 90 days
There are 3 ways for you to request your credit report:
- Apply online
- Request over the phone
- Request via mail
Where can I check my credit score for free?
Request a copy of your credit report from any of the 3 reporting bodies in Australia:
| Credit bureau | Website | Phone |
|---|---|---|
| Equifax | www.equifax.com.au/personal/products/credit-and-identity-products | 138 332 |
| Experian | www.experian.com.au/consumer/order-credit-report | 1300 783 684 |
| Illion | www.creditcheck.illion.com.au | 1300 734 806 |
What is a credit score?
In simple terms, a credit score is a value that indicates to lenders how well you manage credit. Your credit score will be a number between 0 – 1,000 or 0 – 1,200. The higher the value, the better the score is.
How credit scores work
Credit scores work by collecting information about your credit and how well you manage it. Some of the factors commonly included in credit score calculations in Australia:
- Comprehensive credit reporting information (CCR)
- Repayment history
- Credit limit
- Credit applications
- Adverse events – like defaults and bankruptcies
- Personal information
- Credit report age
Each credit reporting body collects different information and calculates credit scores in different ways. So it’s a good idea to get free copies of your credit report from all 3 if you want to stay on top of your credit rating.
This is also good practice because different lenders will use different credit reporting agencies. Making sure each report is accurate and up-to-date will help give you the best shot at approval when you apply for finance.
Why are credit scores important?
Credit scores make up a part of the review process for any finance application. They indicate to lenders the likelihood of you meeting their eligibility requirements and creditworthiness. Some lenders will only approve a certain type of finance if you fit within a set credit score range. While others will look at the information in your credit report, not the score itself.
For example, you would still be eligible for a small secured loan through Swoosh Finance if you had a bad credit rating. But if you had an active bankruptcy listed on your credit file, you would not be eligible for finance until it was cleared.
What is a good credit score in Australia?
Credit reporting bureaus in Australia have different credit score ranges. That is why it is important to check your credit report for each agency, the lender you apply with may use a different agency than the one you check.
See the breakdown of ranges below.
| Credit bureau | Excellent | Very Good | Good | Fair | Below average |
|---|---|---|---|---|---|
| Equifax | 853 – 1,200 | 735 – 852 | 661 – 734 | 460 – 660 | 0 – 549 |
| Experian | 800 – 1,000 | 700 – 799 | 625 – 699 | 550 – 624 | 0 – 549 |
| Illion | 800 – 1,000 | 700 – 799 | 500 – 699 | 300 – 499 | 0 – 299 |
How to improve credit score
Now you know how to check your credit score for free in Australia, you might be looking to improve it. Your score will improve naturally over time as long as you meet your financial requirements. But if you’re worried about getting financed with a low credit score, then it might be worthwhile taking time to fix your credit rating before you apply. In some cases, a personal loan may help you improve your credit score.
FAQs
How soon will I receive my credit report?
Most credit reporting bureaus will send your credit report within 1 – 2 business days, provided your identity is verified. If you request a copy via phone or mail then it may take longer to arrive.
Does checking your credit score affect it?
Checking your own credit report will not affect your credit score. However, if you apply for finance then the lender will need to do a ‘hard check’ on your credit file, which will temporarily cause a slight dip in your score.
Does Afterpay affect credit score?
Afterpay does not directly affect credit scores in Australia. This is because Afterpay does not currently report information (like missed payments) to any credit reporting agency.
