Australian Credit Score Ranges & What They Mean for Loan Approval

Australian credit score ranges can look confusing because they use different scales, but lenders use all of them for the same purpose. Your credit score is a shorthand way to express how risky you are to lend to. In this guide, we’ll break down the main credit score ranges in Australia and explain what they mean in real loan decisions.

How Credit Scores Really Work In Australia

Why Australia Uses 3 Different Credit Score Scales

Australia does not have a single national credit score. Instead, 3 private credit reporting bodies calculate their own scores using their own models.

Equifax uses a 0 to 1,200 scale. Experian and illion both use 0 to 1,000 scales. The score bands are similar across all 3, but the exact thresholds differ, which is why your number can change when you check it with different providers.

What Your Score Says About Risk, Not Morality

A credit score is a probability estimate. It predicts how likely you are to pay your credit accounts on time over a certain period, based on how people with similar profiles have behaved in the past.

It is not a judgement about your character. It is a risk rating built from data such as:

• Whether you pay credit accounts on time
• How often you apply for credit
• Any defaults, serious arrears or bankruptcies on your file

When lenders talk about a score being good or low, they are really talking about how likely they think you are to repay.

The Main Australian Credit Score Ranges And Risk Bands

Across the 3 main bureaus, Australian scores fall into consistent bands that run from low through to excellent. The table below summarises commonly used ranges.

Scores in the good band or higher usually indicate lower risk. Scores in the low or below average band signal higher risk, with a higher chance of missed payments based on past patterns.

Equifax: 0 to 1,200 And How Lenders Read Each Band

Equifax is the largest bureau in Australia, and many consumer finance lenders use its 0 to 1,200 score in their internal models.

Equifax bands typically look like this. Below average runs from 0 to 459, average from 460 to 660, good from 661 to 734, very good from 735 to 852 and excellent from 853 to 1,200. Moving from one band to the next signals a meaningful change in risk, not just a cosmetic jump in your number.

Experian: 0 to 1,000 And Its Good And Excellent Zones

Experian uses a 0 to 1,000 scale. Its explanation for consumers is simple. A higher Experian score means a healthier credit history and suggests that you have managed credit sensibly over time.

Industry guidance often treats scores above about 600 as good, with 700 and above regarded as very strong and 800 or more as excellent. The precise labels may differ between providers, but the picture is the same. Higher scores reflect lower risk.

illion: 0 to 1,000 And How It Classifies Your Profile

illion also scores from 0 to 1,000, with its bands often described as low, room to improve, average, great and excellent.

In many public guides, illion considers 500 to 699 to be average to good, 700 to 799 to be great, and 800 to 1,000 to be excellent. Again, the key point is that moving into higher bands signals a lower likelihood of default over the next few years.

From Score To Decision: How Lenders Use Ranges In Practice

How Credit Scores Feed Into Loan Approval Models

Different lenders use different thresholds, but most will treat applicants in the good to excellent bands as lower risk than applicants in the fair or low bands.

A simplified version of the process looks like this:

1. The lender requests your credit report and score from one or more bureaus
2. The score is fed into an internal scoring or decision model along with your income, expenses and other details
3. The model assigns you a risk grade that the lender uses to approve, decline or refer for manual review
4. If approved, the risk grade can also influence pricing such as the rate offered

Why 2 Borrowers With The Same Score Can Get Different Outcomes

Even with the same score from the same bureau, 2 borrowers can receive different decisions from different lenders.

This happens because each lender sets its own risk appetite. One lender may specialise in near prime borrowers and accept more loan applications in the fair to good range. Another may prefer only very good or excellent profiles. They also weigh your income, employment stability, existing debts and loan purpose in different ways.

Where Good Ends And High Risk Begins In Real Loan Decisions

In broad terms, good scores sit in the 600s and above on a 1,000 point scale, or the high 600s and above on a 1,200 point scale. Below those levels, lenders may still approve, but they will scrutinise the application more closely.

There is no single cut off that guarantees approval or decline. A borrower with a fair score but strong income, low existing debts and a clean recent history can sometimes be more attractive than a borrower with a higher score but unstable income.

Credit Scores In The Personal Loan Market

Typical Score Expectations For Unsecured Personal Loans

Unsecured personal loans involve more risk for lenders than loans secured by a car or property, because there is no asset to sell if you stop repaying.

As a result, many lenders prefer applicants in the good band or higher for standard unsecured personal loans. In practice, that often means a score in at least the mid 600s on a 0 to 1,000 scale, or in the high 600s or above on a 0 to 1,200 scale.

Some lenders will consider applicants in the fair range, but usually at higher rates and with tighter checks on income, expenses and existing credit commitments.

When A Lower Score Can Still Be Considered

A lower score does not automatically mean you cannot be approved. It means the lender will look more closely at why the score is lower and how you are managing your finances now.

For example, an old default that has been paid and a recent pattern of on time repayments may be viewed more favourably than recent missed payments, even if the total score is the same. Time since the event, size of the debt and the number of issues all matter.

How A Lender Like CashPal Looks Beyond The Score

Responsible lenders like CashPal know that a credit score is only one signal. CashPal looks at your broader situation, including income, living costs and existing debts, alongside your credit report.

That means a single number does not decide your loan application outcome on its own. We still have to follow responsible lending rules and cannot promise approval, but we do take a balanced view rather than relying on credit scores alone.

Using Your Credit Score To Plan Your Next Application

Reading Your Score And Report Without Overreacting

When you see your score for the first time, it is tempting to focus on the label. Try instead to read your full report. Look at what has driven the score up or down.

Key items include new credit enquiries, any missed payments reported by lenders, and any defaults, court judgements or serious credit infringements. These entries usually have more impact on your future applications than minor fluctuations in your raw score.

Setting A Target Band Before You Apply For A Loan

Rather than chasing every extra point, set a realistic band target before you apply. For many personal loan applicants, aiming to be in the good band or higher gives a better starting position.

If you are currently in the fair band, your plan might be to reduce unsecured debts, clear any overdue amounts and build a recent record of on time payments for at least 6 to 12 months before applying.

Timing And Spacing Applications To Protect Your Score

Every application for credit can leave a footprint on your credit file. A cluster of applications in a short time can worry some lenders. This approach helps you protect your score while you look for a suitable loan.

To reduce that risk, you can:

1. Check your credit score and report before applying so you know your starting point
2. Compare options and shortlist lenders that are a realistic match for your profile
3. Space applications and avoid multiple hard enquiries in quick succession wherever possible

FAQs

What Is Considered A Good Credit Score In Australia For Most Loans

In Australia, scores generally range from 0 to 1,000 or 0 to 1,200, depending on the bureau. Broadly, scores in the good band start from the low to mid 600s and rise from there, with 700 and above often regarded as very strong.

Each lender still decides what they consider acceptable for different products, so there is no universal minimum.

Is There A Minimum Credit Score For Personal Loans In Australia

There is no single minimum credit score for affordable personal loans that applies across the entire market.

Many mainstream lenders focus on applicants in the good to excellent bands. Some specialist lenders consider applications from people in the fair band, but they usually carry out more detailed checks and may charge higher rates to reflect the extra risk.

Can I Still Get Approved If My Credit Score Is In The Average Band

It is possible, but it depends on your overall profile and the lender.

If your score is in the average band, lenders will pay closer attention to your income stability, living costs, existing debts and any negative listings. Showing a recent pattern of on time payments and responsible use of credit can make a meaningful difference.

Why Is My Credit Score Different With Equifax, Experian And Illion

Your score differs because each bureau uses a different scale and its own model. Equifax scores from 0 to 1,200. Experian and illion score from 0 to 1,000. They also hold slightly different data at any point in time.

That means a number that looks average on one scale can sit in a different band on another. It is better to focus on the band and trend rather than the exact number.

How Often Should I Check My Credit Score Before Applying For A Loan

Checking your own credit score is a soft enquiry and does not harm your score. Most people only need to check a few times a year, and again before a major application such as a personal loan or car loan. Regular checks help you spot errors early so you can request corrections before you apply.