If you’ve ever checked your credit report and saw a score in the 700s or 800s, you might’ve wondered, “Is that actually good?”
In Australia, credit scores can look a little confusing at first, especially because each credit reporting agency uses slightly different ranges. What’s ‘excellent’ with one might be ‘very good’ with another.
Still, knowing where your score sits and what it says about your financial habits can make a big difference when you’re applying for new credit.
How Credit Scores Work In Australia
In Australia, your credit score isn’t decided by just one source. The three main credit reporting agencies are Equifax, Experian, and illion, and each one has its own way of calculating your score. They collect your credit information from lenders, banks, and utility providers and determine your score based on how well you pay these bills.
Equifax uses a scale from 0 to 1,200, whereas Experian and illion both use 0 to 1,000. This means a score of 800 doesn’t necessarily mean the same thing across all three agencies.
Every time you apply for credit or pay off a debt, that record is added to your credit history, which these credit reporting agencies use to build your overall credit picture.
How Your Credit Score Changes
Credit scores aren’t permanent. It moves up or down depending on how you handle your finances. Paying your bills on or before their due dates is one of the easiest ways to keep your score healthy. Missing payments or defaulting on a loan can cause noticeable drops, even if the rest of your record looks good.
Another factor is credit utilization, which is how much of your available credit you use. Regularly maxing out your credit card or taking on multiple new loans in a short period can make lenders cautious.
What 700 And 800 Really Mean
If your credit score is around 700, that’s already a good sign. It tells lenders that you’re managing your finances well. You likely pay your bills on time, don’t overuse your available credit, and avoid taking out loans you don’t need. Essentially, a 700 credit score shows you’re a good and reliable borrower.
Equifax data shows that the average credit score in Australia is 861, so a score in the 800s is well above average.
Lenders often reward good borrowers with lower interest rates, faster approvals, and better loan terms. For example, two people might have the same income, but the one with an 800 score will likely qualify for a more competitive mortgage rate.
The Advantages Of An 800 Credit Rating
Scores in the 800s fall into the ‘excellent’ category, especially for Experian and illion. For Equifax, 800 falls in the ‘very good’ category. A higher credit score makes it easier to negotiate better loan terms, qualify for premium credit products, and enjoy lower interest rates. Maintaining this level of credit takes effort, though. Even something as simple as a missed payment or a new credit enquiry can cause a small dip.
You don’t need a perfect credit score to get the benefits. The highest possible credit score in Australia is 1,200 with Equifax and 1,000 with both Experian and illion. Very few people ever reach the maximum, and lenders don’t expect you to. Anything above 800 is great and can help open the door to more opportunities. Always strive to carefully manage your accounts and don’t be afraid to ask for professional help if you don’t know how.
Australian Credit Savers reviews credit reports for invalid listings and inaccurate information, helping people dispute and remove them from their credit files. You can get a free credit report assessment here.
