Credit Rating


Do you know what your credit rating (or credit score) currently is?

We understand it can be quite confusing, but it’s an important key to help you move forward in your financial journey.

Empowering you to understand and improve your credit rating is one of our goals, so let’s get started.

In Australia, your credit rating can be determined by a number of credit bureaus, including Equifax and Illion. Each has their own way of calculating your credit rating (or score) and although they may differ, their principles are the same. Here’s a general guide.

  • Good Credit (score over 700)
  • OK Credit (score between 500 and 699)
  • Not Great/Poor/Bad (score below 500)

Would you like to know exactly how your credit score is calculated? Well, unfortunately only the credit bureaus know their exact formula. All we know is that each bureau has their own way of determining your credit rating (score) and it depends on what is listed on your credit history with them. (Your details can differ with each credit bureau as lenders and service providers may choose to list their interactions with you with a specific credit bureau, i.e. not all of them.)

Your credit history records your personal details, such as full name, date of birth, employment and address, as well as any credit activity such as taking out a credit card/loan or using a service provider like a telephone, water or electricity company. It also shows if you’ve been late with paying any of your loans and bills. It’s generally calculated and updated monthly and looks at your credit history over the past 5 – 7 years. If you have never borrowed money or used a service provider, you won’t have a credit history. This means lenders won’t know if you can be relied on to repay a debt, and so it actually reduces your credit score and can make it harder to get a loan.

Below is a life cycle guide to give you an understanding of what events through your life can help build your credit history.

If you’d like to understand more about your credit history, why not read our blog “What’s the difference between your credit history, credit file, credit report and credit score?”

If you’d like to obtain a copy of your credit report from Equifax, our blog “What is my credit score? Find out now for free” will explain exactly what you need to do.

Want to know how you can actively improve your credit rating? Read our blog “5 tips to improve your credit score.” 

Are you eligible to apply?


It can be expensive to borrow small amounts of money and borrowing may not solve your money problems.

Check your options before you borrow:
For more information about other options for managing bills and debts, ring 1800 007 007 from anywhere in Australia to talk to a free and independent financial counsellor.

Talk to your electricity, gas, phone or water provider to see if you can work out a payment plan.
If you are on government benefits, ask if you can receive an advance from Centrelink.

The Australian Government’s MoneySmart Website shows you how small amount loans work and suggests other options that may help you.

* This statement is an Australian Government requirement under the National Consumer Credit Protection Act 2009.