Illion: Good – 500-699; great – 700-799; excellent – 800-1,000.
Though it may be more challenging to find a lender that's willing to work with you, it is indeed possible to obtain a loan with a credit score of 550. Most lenders require a minimum credit score of between 600 and 650, but some lenders specialize in personal loans for those with lower scores.
The Equifax 2022 Credit scorecard - combining survey data of 1,016 respondents with credit score information for more than two million individuals - found many Australians are establishing more disciplined spending habits. Average Australian's credit score is 846 according to Equifax.
As a result, credit scores can give banks and lenders a reason to deny your application for a loan or credit. Low credit scores across the three Australian credit bureaus are: Experian 'below average' band: 0-549. Equifax 'below average' band: 0-505.
1,000 or 1,200 (perfect score)
If your score is 1,000 for Illion or Experian or 1,200 for Equifax, you have a perfect credit score. Just 3.5% of all Australians achieve this score. It usually takes a lot of time to build up such positive credit history and it shows a high level of financial responsibility.
Minimum score required
While you can get a home loan on a low or average credit score, you'll face a higher APR. We recommend going for the loan once you have a credit score above 630. The acceptable credit score is between 660 and 700, but some lenders might hesitate to offer you a loan.
What credit score do banks use in Australia? As it's the largest of the credit reporting organisations, most Australian banks use Equifax credit scores in their assessments of credit worthiness.
Your score falls within the range of scores, from 300 to 579, considered Very Poor. A 500 FICO® Score is significantly below the average credit score. Many lenders choose not to do business with borrowers whose scores fall in the Very Poor range, on grounds they have unfavorable credit.
Some people wonder whether the starting credit score is zero, for example, or whether we all start with a credit score of 300 (the lowest possible FICO score). The truth is that there's no such thing as a “starting credit score.” We each build our own unique credit score based on the way we use credit.
If your credit report shows scores out of 1,200 then as a rule of thumb a score above 853 is excellent while above 661 is good. If your credit report shows scores out of 1,000, above 690 is excellent and above 540 is good.
Illion: Good – 500-699; great – 700-799; excellent – 800-1,000.
The time it takes to increase a credit score from 500 to 700 might range from a few months to a few years. Your credit score will increase based on your spending pattern and repayment history. If you do not have a credit card yet, you have a chance to build your credit score.
The good news is that when your score is low, each positive change you make is likely to have a significant impact. For instance, going from a poor credit score of around 500 to a fair credit score (in the 580-669 range) takes around 12 to 18 months of responsible credit use.
The credit-building journey is different for each person, but prudent money management can get you from a 500 credit score to 700 within 6-18 months. It can take multiple years to go from a 500 credit score to an excellent score, but most loans become available before you reach a 700 credit score.
Yes, you can get a personal loan with a credit score of 550. You could consider getting a secured personal loan, applying for an unsecured personal loan with a co-signer, borrowing from family and friends, and checking with local credit unions which usually have a lower requirement over credit score.
Factors that contribute to a higher credit score include a history of on-time payments, low balances on your credit cards, a mix of different credit card and loan accounts, older credit accounts, and minimal inquiries for new credit.
The average Australian Equifax credit score is 846 out of a possible 1,200, which lies in the 'very good' range. The Equifax Credit Scorecard offers market-leading insights into the credit habits and Equifax credit scores of Australian consumers.
Knowing your credit score can help you understand how much – or how little – a credit lender might offer and why. Chances are you've recently paid for something on credit – it's a big part of our everyday lives. Credit helps us pay our rent, buy a home or a car, take a holiday and cover our living expenses.