Keeping track of your credit history is essential if you’re planning to apply for finance in the future. Whether you’re considering a bad credit loan, a personal loan or another type of finance, it’s important to make sure the information on your credit report is accurate and know your credit score before you apply. We’ll take you through how to check your credit score in Australia so you can stay on top of your finances and give yourself the best chance of approval.
Overview:
- How to check your credit score
- What is a credit score?
- Why are credit scores important?
- What is a good credit score in Australia?
- How to improve 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
How to get your credit report 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 |
What is a credit score?
Understanding what a credit score is can make borrowing a whole lot less confusing. Your credit score is a number that gives lenders an idea of how you’ve managed credit over time. In Australia, it’s based on the information in your credit report, including your repayment history, credit applications, and current credit accounts.
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.
Having a stronger credit history may improve your chances of approval with many lenders and could provide access to more competitive finance products. There are several benefits of having a good credit score, particularly if you plan to apply for finance in the future.
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 |
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.
Some general ways to improve your credit score include:
- Making your loan and bill repayments on time.
- Avoiding multiple credit applications in a short period.
- Checking your credit report for errors and requesting corrections if needed.
- Reducing outstanding debt where possible.
- Only applying for credit when you genuinely need it.
- Seeking free financial guidance from the National Debt Helpline if you’re struggling with debt or repayments.
Can a personal loan improve your credit score?
Potentially, but not always. Simply taking out a personal loan won’t improve your credit score on its own. Instead, whether a personal loan can improve your credit score depends largely on how you manage the loan over time. Consistently making your repayments on time and meeting your loan obligations may contribute to a positive credit history, while missed repayments could have the opposite effect. As with any financial product, it’s important to consider your individual circumstances and whether a personal loan is the right option for your needs before applying.
Checked your credit score and ready to explore your finance options?
At Swoosh Finance, we believe everyone deserves a fair go. That’s why we take a balanced approach to assessing loan applications and look at more than just your credit score. As responsible lenders, we offer bad credit loans with transparent fees, a streamlined online application process, and straightforward eligibility criteria. If you’ve considered your options and are ready to apply, you can complete your application online in just a few minutes. Apply now to get the ball rolling!
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.
Does credit score matter in Australia?
Yes. Many Australian lenders consider your credit report and credit score when assessing finance applications. While your credit score isn’t the only factor, a stronger credit history may improve your chances of approval depending on the lender’s criteria.
How can I repair my credit score?
Improving your credit score usually takes time. Paying your bills on time, avoiding multiple credit applications in a short period and correcting any errors on your credit report can all help improve your credit history over time.
Is checking your credit score safe?
Yes. Checking your own credit report or credit score is safe and does not affect your credit rating. This is known as a soft enquiry. Only certain credit applications that require a lender to assess your credit file may result in a hard enquiry.
