Credit score tips with Money Matchmaker®

What is a good credit score?

Written by

Shaun McGowan

Your credit score is a number that represents your stability and financial trustworthiness.

Everyone’s credit score is determined by their credit report, which is a record of each individual’s history of borrowing, including all positive and negative credit events.

But what’s a good credit score, and what does “good” really mean for you?

Let’s dive in.

What is a good credit score?

Credit scores range from 0 to 1,000 or 1,200, with 1,000 and 1,200 being excellent scores. 

IMPORTANT: If you’ve never made a credit enquiry or held a utility account you may not have a credit report or credit score. 

Credit scores are split into five ranges, from low to excellent. 

There are three main credit reporting agencies in Australia, and each of them ranks a ‘good’ credit score differently. 

For example, a credit score of 505 is Average with Experian, but Low with Equifax and Credit Simple. Learn more about credit ranks below.

Credit score ExperianEquifaxCredit Simple

Excellent

800-1000

833-1,200

800-1000

Very good

700-799

726-832

700-799

Average

500-699

622-755

625-699

Fair

300-499

510-621

550-624

Low

0-299

0-509

0-549

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What do credit score ranks mean?

  • Excellent - An excellent credit score shows lenders that you have a strong credit history. You should be able to access credit easily, including the best interest rates and favourable loan terms.
  • Very Good - Provided you are able to make repayments you should be able to secure finance easily with a very good credit score. You may not get rates as good as those with an excellent credit score. 
  • Average - An average score may mean higher rates and stricter terms than very good and excellent scores, but in most cases, you should still be able to secure finance. 
  • Fair - A fair credit score may affect your ability to secure finance. Lenders may offer you higher interest rates and look very closely at your finances to ensure you have the ability to make repayments. 
  • Low - A low credit score indicates to lenders that you have bankruptcies, defaults or other negative events in your credit history. Traditional lenders may deny your applications for finance or charge you higher interest rates.
How lenders assess risk when it comes to borrowing money

So what’s a “Good” credit score?

Taking all three credit reporting agencies into account, a credit score above 699 will ensure you qualify for most loans and can access competitive rates. Even with a good credit score, you can still take steps to improve your credit rating and rank with reporting agencies.

How do I check if I have a good credit score?

You can check your credit score for free and without any impact on your credit score with Money Matchmaker®.

You'll need to create an account with these details:

  • Full legal name
  • Driver Licence number
  • Residential address
  • Date of birth

Your score won't be negatively affected and we protect your data with encryptions.

See what parts of your credit report are negatively, or positively, affecting your score.

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How your credit history affects your loan options with Money Matchmaker

How could a bad credit score affect me?

Having a bad credit score isn’t the end of the world but it can make securing credit more difficult.

  • Lenders may deny your applications for credit. That includes personal loans, credit cards, vehicle loans and home loans. 
  • If your application is accepted you may be offered higher interest rates and/or more restrictive loan terms. 
  • In rare cases, if your credit score is very bad, utility companies (electricity, gas, internet, phone) could refuse to provide you services.

If lenders deny your applications you may still be able to access credit with lenders who specialise in bad credit loans

Bad credit loans often have much higher interest rates and fees than other products on the market - it may be worth improving your credit score before applying.

Find out what you could borrow without affecting your credit score

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About Money.com.au

Money.com.au want to make managing money easy and fun! By giving Australians simple tools so they can make the best decisions they can about their money.

We understand that the world of finance is complex, and offer free, extensive guides on Personal Loans, Car Loans and Business Loans, along with tools like our Budget Planning Spreadsheet to help you better manage and understand personal finance.

About the Author

Shaun McGowan from money.com.au

Shaun

McGowan

Shaun McGowan

Shaun is the founder of Money.com.au and is determined to help people pay as little as possible for financial products. Through education and building world class technology. Previously Shaun co-founded CarLoans.com.au and Lend.

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Disclaimer

Money Pty Ltd (trading as Money.com.au) provides information about credit products and is authorised to do so as the holder of Australian Credit Licence 528698. Money.com.au does not compare every Lender in Australia. We are not a broker or credit provider and when we provide information via this website, we are not providing you with a recommendation or suggestion about a particular credit product. When you apply for a credit product via the Money.com.au website, you are not applying with us, you are applying directly with a Lender Partner. Before entering into any credit product from one of our Lender Partners, you should confirm the rates and product information with the Lender. All information on this website is general advice only and does not take into account your objectives, financial situation or needs. You should consider whether this advice is right for you and we encourage you to seek independent financial advice.