Generally, an Experian score below 550 and an Equifax score below 510 is considered bad. Anything below 400 is exceptionally poor.
While the exact range for a bad credit score in Australia can depend on the credit scoring model, usually a score between the range of 300-550 is considered a bad credit score.
A bad credit score is a FICO credit score below 670 and a VantageScore lower than 661. If your credit isn't where you would like it to be, remember that a bad credit score doesn't have to weigh you down. Fortunately, you can take simple steps to improve your credit, and you might even see results quickly.
Below 300: Very Poor. 300-579: Poor. 580-669: Fair/ Average. 670-739: Good.
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.
Lenders like to see a mix of both installment loans and revolving credit on your credit portfolio. So if you pay off a car loan and don't have any other installment loans, you might actually see that your credit score dropped because you now have only revolving debt.
What's the average credit score in Australia? The average credit score among Australians is 846 according to credit reporting company Equifax. That means on average Australians have a 'very good' credit score.
Most negative items should automatically fall off your credit reports seven years from the date of your first missed payment, at which point your credit scores may start rising. But if you are otherwise using credit responsibly, your score may rebound to its starting point within three months to six years.
If you want help, you can hire a credit repair company to assist you. They generally charge anywhere from $19 to $149 a month for their services. But beware of scam credit repair offers, which may leave you in worse financial shape than before. Consumer Financial Protection Bureau.
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.
Whatever your reason for wondering how long it takes to get a credit score, you can generally expect it to take about six months – and usually longer to get into the good-to-exceptional credit score range.
But your credit score won't start at zero, because there's no such thing as a zero credit score. The lowest score you can have is a 300, but if you make responsible financial decisions from the beginning, your starting credit score is more likely to be between 500 and 700.
A 300 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.
A 450 FICO® Score is significantly below the average credit score. Many lenders view consumers with scores in the Very Poor range as having unfavorable credit, and may reject their credit applications. Applicants with scores in this range may be required to pay extra fees or to put down deposits on credit cards.