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In one word - YES!Bad credit can be turned into good credit

There may be no magic overnight formula, but if you currently have bad credit (which can also be referred to as having a poor or below average credit score) there are a number of things you can do to help fix it, starting today.

First, let’s understand what bad credit (or a below average score) looks like and then we will look at 5 easy to follow steps which are guaranteed to help improve your bad credit and increase your credit score.

What does Bad Credit mean?

Bad Credit refers to when your credit history (recorded on your credit file) is considered bad. Missed repayments, loan defaults, debt agreements and bankruptcy are all defined as bad credit behaviour. Credit bureaus then use this information to calculate your risk as a borrower, which is reflected as your credit score.

As a general guide, anything below 550 is considered a bad credit score. A good score is 700 or more and anything over 800 is excellent, however this can slightly vary depending on which credit bureau you obtain your credit report and credit score from.

For example, below are the descriptions and scores Equifax use, but as you can see, they still align closely to our general guide.

Status Score
Below Average 0 – 509
Average 510 – 621
Good 622 – 725
Very Good 726 – 832
Excellent 833 – 1200

Knowing what bad credit now means and how it converts to a credit score, let’s look at the most successful ways to improve your credit rating if you currently have bad credit.

Follow these 5 easy to follow steps

5 easy-to-follow steps to improve your bad credit

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Why is it important to go from Bad Credit to Good Credit?

Bad credit can stop you from achieving many financial goals such as buying a new car, getting a mortgage or taking out a personal loan or credit card.

The major causes of having bad debt are events such as missed repayments, loan defaults, debt agreements and bankruptcy listed on your credit file, which result in you having a below average credit score and being considered a higher risk to credit providers.


But the good news is, it’s never too late and you can go from bad credit to good credit and improve your financial future.

The key is to understand your credit report, keep up-to-date with what is listed on it and actively do what you can to help maintain and improve it.

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Are you eligible to apply?

  • I am 18 years or older
  • I have not entered into bankruptcy or part 9 agreement within the last 6 months
  • I am willing to provide my Bank Statements online
  • My income is not solely from Centrelink
Please note: Bank statements can only be submitted via our secure online service.