What is a good credit score range in Australia?
One of the most frequently asked questions that we encounter is ‘what is a good credit score?‘
Without context, your rating (which will be between 0 and 1,000) won’t give you the information you need to better understand your creditworthiness.
So we’ve compiled a credit score chart to help you understand what constitutes a good rating range in Australia.
You probably don’t need our help to tell you that a zero rating isn’t great. Chances are, you’ve experienced a court summons, bankruptcy or other forms of payment defaults that have negatively impacted your score. You will find it difficult to obtain credit and you may have to spend the next few years improving your rating by paying off debts and avoiding unnecessary credit.
Between 1 and 299
The good news is that your rating isn’t zero; the bad news is that you probably still have a number of black marks on your report preventing you securing credit. Build up your positive account payment information, avoid making multiple credit enquiries and wait for any defaults to be cleared from your record, which can take up to five years.
Between 300 and 499
This credit score range is considered below average, but you probably don’t have any extremely negative problems with your report, such as a bankruptcy. In fact, you may just be in a younger age bracket, which lenders classify as riskier. Tighten up slightly on your credit behaviour and you should see improvements before too long.
Do you have an over-800 score? Time to start celebrating because you join an elite club of borrowers who has an excellent credit rating.
Between 500 and 699
You are distinctly average. Don’t worry, though; this means your score is actually pretty healthy and a few small changes could have a positive impact on your credit rating range.
Between 700 and 799
Congratulations. You’ve reached the lofty heights of a great credit rating score. You pay your bills on time and have no major negatives on your credit file, although you may have a number of credit applications against your name. Still, you should enjoy favourable treatment from most lenders.
More than 800
Do you have an over-800 score? Time to start celebrating because you join an elite club of borrowers who has an excellent credit rating. You’re likely in an older age bracket and have spent a lifetime building positive credit actions, such as prompt payments, sensible applications and limiting your lines of credit.
You should now know what is considered a good credit score in Australia, but click here if you’d like to learn more about your rating.
Do you know what your credit rating means? Let’s take a look.