What is the Average Credit Score in Australia?

When you apply for a loan or credit product, lenders will likely use your credit score as a factor in assessing your application, which makes it one of the most critical numbers in your life.

But what exactly is a good credit score in Australia? Is there such a thing as a bad credit score? And how close are you to the average credit score? 

Read on to find out what the average credit score is. If you’re below the average and want to be above it, this article will have some helpful information for you as well.

On this page:

• What are the different credit score ranges in Australia?
• What is a ‘good’ credit score?
• What is a ‘bad’ credit score?
• What is the average credit score in Australia?
• Average credit scores by age
• Average credit scores by state
• What happens if your credit score is below average?
• How to improve a below-average credit score
• Where to check your credit score for free

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What are the different credit score ranges in Australia?

There are three leading credit reporting agencies in Australia: Equifax, Experian, and illion. Depending on the credit agency, your score will be classed in a particular category, and in these categories, credit scores usually range from 0 to 1,200.

Here’s what these credit score ranges currently look like, based on Equifax’s names as of 2024:

	Equifax	Experian	illion
Below Average	0 - 459	0 - 549	1 - 299
Average	460 - 660	550 - 624	300 - 499
Good	661 - 734	625 - 699	500 - 699
Very good	735 - 852	700 - 799	700 - 799
Excellent	853 - 1,200	800 - 1,000	800 - 1,000

What is a ‘good’ credit score?

As you can see above, a ‘good’ credit score can be a broad term. For Equifax, a ‘good’ score is 661 - 734, a ‘very good’ score is 735 - 852, and an ‘excellent’ score is 853 up to 1,200.

Experian is similar to Equifax in that it requires a credit score of 625 or higher to be considered good, while illion considers anything above 500 a good credit score. Generally speaking, if your credit score is over 800, you’ll be viewed as an excellent credit customer.

What is a ‘bad’ credit score?

Credit Bureaus tend not to use ‘bad’ to describe someone’s credit score. The lowest band, as seen above, is often called ‘low’ or ‘below average’ instead. To be considered low, your credit score must be:

• Under 459 with Equifax;
• Under 550 with Experian;
• Under 300 with illion

Lenders might see you as a riskier borrower if you have a low credit score, as this tends to indicate a history of behaviours such as missing repayment deadlines, defaulting on loans, applying for too many credit products and more.

Keep reading for some tips on improving a ‘bad’ credit score, or see our page on Bad Credit Loans for more information on how to get a loan with less-than-ideal credit.

What is the average credit score in Australia?

According to the Equifax Australian Credit Scorecard 2023, the average Australian’s credit score is 855. That’s enough to land someone in the ‘excellent’ category (853 – 1,200) and is an increase from 846 the previous year.

Women (868) also have a higher average credit score compared to men (850) as of 2023.

According to Equifax’s Head of Insights, Carrie Chung, Australia’s credit scores were bolstered by high savings despite harsh economic conditions recently.

“We saw the ABS household saving ratio peak during COVID, at 23.6% in June 2020. Since then, savings have been in consistent decline - a trend that has accelerated in 2023, reaching a 3.2% ratio,” she said.

“Using savings to manage the higher cash rates and increased cost of living has helped cushion many Australian consumers against recent economic turbulence and has had a beneficial effect on their credit scores. But this cushion is shrinking rapidly and has already been exhausted for some.

“A lower credit score doesn’t necessarily mean there is reason to be concerned. However, as we look at the macroeconomic context, we start to see pockets of strained consumers, especially among the younger population.”

See also:

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Average credit scores by age

Younger Australians (18-30) have the lowest average credit score - 731 - of all the age groups, which is unsurprising, given they’re less likely to have a mortgage or as detailed a credit history in general.

Older Australians aged 61-70 have a much higher average credit score of 935.

Age group	Average credit score
18 - 30	731
31 - 40	829
41 - 50	868
51 - 60	918
61 - 70	935

Average credit scores by state

Looking across the states and territories, people in the ACT have the highest average credit score (900). The next highest is Tasmania (882), while the lowest average credit score is in the Northern Territory (825).

State	Average credit score
NSW	873
VIC	881
QLD	848
ACT	900
TAS	882
WA	871
SA	874
NT	825

What happens if your credit score is below average?

Having a below-average credit score in Australia can significantly limit your financial opportunities. If your score falls into the 'Below Average' category, lenders and credit providers might perceive you as a higher risk. 

This can result in either higher interest rates on loans and credit cards or outright rejection of your credit applications. Consequently, it can make it more challenging to secure housing, as home loans are a vital part of the home-buying process. 

It can also create more significant barriers to obtaining finance for other major expenses, like cars, renovations, weddings - the list goes on!

Despite these challenges, it's important to remember that a below-average credit score isn't a permanent stain on your financial record. As we'll discuss further, there are numerous steps you can take to improve your score steadily.

Check if you qualify - no impact on your credit score

Generally speaking, in Australia, applying for a loan often impacts your credit score. A lender or credit provider will almost certainly conduct a hard credit check automatically as part of the application process, resulting in a credit inquiry appearing on your credit report.

If you’re worried about a below-average credit score getting you rejected from your next loan application and further hurting your score in the process, then you’re in luck with Jacaranda Finance.

When it comes to applying for one of our fast online personal loans, you can first check if you qualify based on our eligibility criteria without impacting your credit score at all. 

When you check if you qualify, we can access your credit file in a way that does not impact your credit score.

How to improve a below-average credit score

While you can read our article on improving a low credit score for more details, below is a short summary of the main steps you can start taking right now to improve your credit score and go from below-average to above-average, good, or even excellent.

1. Check your score and report regularly.
2. Ensure your details are up-to-date and there are no errors in your credit report.
3. Avoid missing any repayments, and tell your lender if you need help.
4. Pay off any old debts.
5. Lower your credit card limits.
6. Close ‘bad credit’ accounts.
7. Keep ‘good credit’ accounts.
8. Minimise your loan applications and spread them out.
9. Create stability in your life (fewer moves, job changes, etc.)

Hopefully, by implementing some of the strategies listed above, you’ll see tangible movement towards a better credit score soon.

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Did you know? Equifax’s data shows that the average score of consumers applying for buy now, pay later platforms (BNPL) fell from 694 in 2021 to 582 in 2023.

Avoiding ‘quick fix’ products like BNPL, wage advances, and payday loans is known to lead to higher credit scores overall.

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How Comprehensive Credit Reporting (CCR) can help

Instituted back in 2014 and often referred to as Positive Credit Reporting, Comprehensive Credit Reporting (CCR for short) refers to sharing more comprehensive customer information between credit providers and credit reporting bodies. 

Under CCR, credit reporting agencies can include both positive and negative credit events in a consumer's credit file. This means that your credit behaviour, such as making timely repayments and managing your loans responsibly, will be reported, potentially strengthening your credit profile.

Jacaranda Finance reports positive credit information under Comprehensive Credit Reporting. By successfully applying for one of our loans and repaying it on time and in full, you could see a faster improvement in your credit score compared to non-CCR lenders.

Where to check your credit score for free

With Jacaranda Finance, our customers can check their credit scores for free at any time, simply by downloading and logging in to the Better Credit mobile app or by logging into their online customer portal.

Updated monthly via Equifax, you can monitor your credit score’s progress over time to see where you stand.

Download the app below to check and begin improving your credit score today!