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If you’re thinking about applying for a loan or credit card, you’d probably wonder what is a good credit score in Australia. It’s hard to tell an exact number or rating because each credit reporting agency has its own way to calculate credit score. But in general, their credit score rating is between zero and 1,000 or 1,200 and follows a rather simple rule: the higher the credit score range, the more likelihood of getting your loan or credit card application approved.
At MoneyMe, borrowers with good to excellent credit score average can enjoy not just a higher approval rate but also more favourable repayment terms and lower rates. Furthermore, our same-day application and approval process is purely done online, meaning no lengthy paperwork, in-person or phone interview, and other time-consuming procedures. In fact, once you fill out the online application form with your personal and bank details, you only need to wait a few minutes to know if your loan or line of credit has been approved.
A credit score, also known as credit score range or credit rating, predicts how likely you are to repay your loan or debt on time. Thus, lenders use it to decide whether to approve your application and use it to compute your interest rates. In general, the higher your score, the higher approval rate and better rates you may get to enjoy.
As of this writing, most Australian lenders use the scoring chart from three major reporting agencies, namely, illion, Experian, and Equifax.
Many people wonder how is credit score calculated and how it affects their ability to access loans and lines of credit, especially those with favourable rates and repayment terms. Again, it’s hard to tell an exact number because credit reporting bureaus use different criteria to assess your reliability to pay back the borrowed money based on your previous repayment activities. But to give you an idea, illion defines average credit score as anything between 500 and 699, while anything above this range is considered good and excellent. Meanwhile, anyone with a perfect score of 1,000 is considered a financial unicorn since only around 3.5% of Australian borrowers belong to this exclusive group.
To calculate your credit score and establish ‘what is a good credit score in Australia’, credit reporting bureaus use the following factors:
Any history of bankruptcy or any default judgment against you has a negative effect on your credit score range.
Now that you have an idea of what is a good credit score in Australia, the next step is to know how to improve credit score through positive financial activities that are explained below:
Aside from the question ‘what is a good credit score in Australia’, borrowers are also curious about how to obtain their credit score. It’s important to note that any credit reporting agency should give you access to your consumer credit report for free at least once every three months.
Equifax, Experian, and illion may have different information about your credit score; so you may need to request a copy or use a credit score finder from each of them.
As an innovative financial service provider, the application process at MoneyMe is done entirely online. Also, our approval process only takes a few minutes after you fill out our online application form. Apply today, and once approved, your funds are immediately sent to your bank account.
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What Is a Good Credit Score in Australia
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