What Factors Affect Your Credit Score in Australia?

The main factors are repayment history, the number and pattern of credit applications, credit limits and how much is used, defaults and court judgments, the age and type of accounts, and stability details some credit bureaus consider, like time in a job or at an address.

Key takeaways

On-time payments and a clean two‑year repayment history help a score, while missed payments hurt it.
Multiple credit applications in a short period can lower a score, so space out enquiries and pre‑check eligibility where possible.
Defaults can stay for five years (seven for clearouts), even when paid, so act early to stop debts from going overdue.
Credit limits and product mix are part of the data lenders and bureaus assess, so keep balances low and avoid unnecessary new credit.
A financial hardship arrangement shows on the report for the months it applies, but it does not affect the score, and sticking to the plan shows repayments as up to date.
There is no single national score; Equifax, Experian, and illion each create their own scores and use ranges up to 1,000 or 1,200.
Check reports from all three bodies every three months for free and fix errors at no cost to clean up mistakes.

What shapes a credit score in Australia

Australia uses data in the credit report to calculate a score, which varies by credit reporting body and changes as behaviours change over time.

Scores can range from 0 to 1,000 or 1,200, and bands like low, fair, good, very good, and excellent help lenders assess risk.
The three main bodies are Equifax, Experian, and illion, and each may hold different information depending on which lenders they work with.

Repayment history and hardship flags

Repayment history on credit products is tracked for the last two years, including whether payments were made on time or missed by more than 14 days.

Keeping payments on time supports the score, while late or missed payments signal higher risk.
Financial hardship arrangements can appear for the months they apply, are removed after 12 months, and do not affect the score, provided the agreed terms are met.

Credit applications and enquiry patterns

Every formal credit application records an enquiry on the report, and many enquiries close together can be a negative signal.

Applying to several providers in a short period can lower the score because it looks like higher risk or credit stress.
Even phone, utilities, retail finance, and buy now pay later retail finance can record an enquiry when the provider checks a report.

Defaults, court judgments, and insolvency

Defaults can be recorded when the amount owed is at least $150, 60 days overdue, and proper notice has been given, and they can remain on the report for five years, or seven years for a clearout when the provider cannot contact the borrower.

If a default is paid, the report will still show it, but note that it is paid, which is better than leaving it unpaid.
Court judgments and insolvency events can also appear and can negatively affect a score and lending outcomes.

Credit limits, product types, and file age

Reports show products held in the past two years, credit limits, and account open and close dates, which shape how providers assess risk and affordability.

The types of credit taken (like mortgages, credit cards, personal loans, or retailer finance) can carry different risk weights with Equifax’s model.
The age of the credit file and stability signals, such as time at an address or in a job, may be considered by Equifax models when assessing risk.

No single national score

There is no one score used by all lenders; each credit body has its own model, and lenders also use internal assessments, so scores can differ between providers and change as data updates.

Some scores are out of 1,200 with “good” starting around 661 and “excellent” around 853, while out of 1,000, “good” starts around 540 and “excellent” around 690.
Monitoring all three bodies gives a fuller view because each may hold different data for different lenders.

What helps your score

Paying on time across all credit products builds a positive two‑year repayment history.
Spacing out credit applications and only applying when needed can reduce risk signals from enquiry clusters.
Keeping balances low relative to limits supports affordability checks and lowers risk indicators for lenders.
Maintaining older, well‑managed accounts signals stability to providers and can help overall profile strength.

What hurts your score

Late or missed payments that appear in repayment history signal higher risk and can reduce access to credit.
Many enquiries within short timeframes can reduce the score and raise concerns during assessments.
Defaults, court judgments, and insolvency listings carry significant negative impact for years even if later resolved.
Short file age with many enquiries can appear riskier than an older file with fewer enquiries.

Step-by-step: build and protect your score

Set up payment controls today

Turn on direct debits for minimums and calendar reminders for full payments so repayments stay on time in the two‑year history window.
If cash flow is tight, speak with the lender early and request a financial hardship arrangement so the months are flagged without harming the score while payments remain up to date.

Plan credit applications

Use pre‑assessment tools and apply only when needed to avoid multiple enquiries within a short period.
Avoid stacking applications across cards, personal loans, and retail finance at the same time to reduce risk signals.

Clean up debts and prevent defaults

Bring overdue accounts under 60 days quickly to prevent a default listing and the five‑year impact that follows.
If a default has been listed, pay it and keep records, as reports show whether a default is paid, which is better during lending reviews.

Check all three reports every quarter

Get a free credit report every three months to monitor changes and spot errors or fraud across Equifax, Experian, and illion.
Request a temporary ban if there is a risk of identity theft to block unauthorised applications while investigating.

Dispute mistakes for free

If information is wrong or out of date, contact the credit reporting body and the provider to correct it, at no cost to the consumer.
Keep written records and request updates in writing so corrections are tracked end‑to‑end.

Practical checklist: monthly credit health

Payments on time across all loans and cards this month.
No new credit applications unless needed and planned.
Balances trending down relative to limits on revolving accounts.
No overdue bills approaching the 60‑day mark for default risk.
Reports checked this quarter and any errors flagged for correction.
No signs of identity misuse; ban requested if risk is suspected.

Practical checklist: before applying for credit

Repayments are on track for the last six months to support repayment history.
No recent clusters of applications that would flag higher risk.
Credit limits and balances are managed to show control and affordability.
No unresolved defaults or court matters that may stop approval.
Reports from all three bodies reviewed in the last three months.

FAQ: fast facts

How often can reports be checked for free? Every three months, and also after a credit refusal or when information has been corrected.
How long do defaults stay? Five years, or seven years for clearouts when the provider cannot contact the borrower.
Do hardship flags lower the score? No, the score is not affected, and the listing is deleted after 12 months.
Why are scores different across providers? Each body runs its own model and may hold different lender data.
What counts as a credit enquiry? Applications for loans, cards, phone plans, utilities, and some retail finance can create enquiries.

Step-by-step: fix late payments and avoid a default

Bring the account current within 60 days
- Pay the overdue amount or set a short plan with the provider to get under the default threshold of 60 days.
Confirm receipt and update
- Ask the provider to confirm the account is now up to date and keep the written confirmation for records, which supports future assessments.
Review all balances and calendar due dates
- Track due dates for each account in a calendar, and set transfers or direct debits so payments are not missed beyond 14 days.
Review reports next quarter
- Check all three reports to confirm the repayment history is back on track and no new negative listings were added.

Step-by-step: apply without denting your score

Pre‑check eligibility : Use provider guidance and comparison information to avoid multiple formal applications within short windows.

Submit one complete application : File one strong application with full documents rather than several partial ones that create extra enquiries.

Wait for an outcome : Avoid filing the same application with multiple lenders at once so enquiry clusters do not lower the score.

How to read your report: what to look for

Personal details: name, date of birth, licence, and addresses should match current records to avoid mistaken identity and mixed files.
Credit products: type, provider, limit, and open/close dates for the past two years should match active and closed accounts.
Repayment history: each month should show on‑time payments where due, and missed payments should be addressed with the provider.
Hardship information: months with an arrangement are flagged, then removed after 12 months, and are not used in the score.
Defaults and judgments: verify accuracy and dates so timeframes for removal are clear and corrections can be requested if wrong.
Enquiries: confirm each was authorised and challenge any unknown applications, and place a ban if identity theft is suspected.

When to seek extra help

If repayments are getting out of control, contact the lender early to discuss a hardship plan that keeps payments on track under a fair arrangement.
If identity theft is suspected, request a temporary ban and check all reports right away to block new applications while investigating.
For legal questions about listings and disputes, use community legal resources and escalate through dispute resolution if the provider does not fix errors.

Final thoughts

A steady payment record, limited and well‑timed applications, low balances relative to limits, and a clean report free of defaults are the core habits that protect and grow a score in Australia.

Staying proactive with quarterly report checks and early hardship requests keeps issues small and supports better outcomes on future credit applications.

If support is needed with report checks, dispute letters, or a plan to improve a score, Easy Credit Repair can help with practical steps tailored to the Australian system—check out our services or get a free quote.

Disclaimer: This article reflects research and views for general information only and is not financial advice; for questions about personal circumstances, please reach out.