What is bad credit in Australia? Both Experian and Equifax (popular credit bureaus) state that a credit rating of 500 or lower is bad credit, meaning you have a bad credit history (with poor FICO scores). Specifically, bad credit for Experian is less than 579 and less than 549 for Equifax.
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. Women (858) have a higher average credit score than men (836), while the average credit score is higher for older Australians.
For Illion, it is possible to get a 'zero' score, 1 to 299 is considered 'Low' and 300 to 499 is described as 'Room for improvement'. Sources: Equifax, Experian, Illion.
New bands: Poor (0-438), Fair (439-530), Good (531-670), Very Good (671-810), Excellent (811-1000).
Illion: Good – 500-699; great – 700-799; excellent – 800-1,000.
A credit score of 600 or below is generally considered to be a bad credit score. And if your credit is low, you may qualify for a loan but the terms and rates may not be favorable. Credit scores between 601 and 669 are considered fair credit scores.
ClearScore should be as accurate as Experian considering your ClearScore information is pulled from Experian. Thus, ClearScore is considered as accurate as any credit reference agency.
Your score falls within the range of scores, from 300 to 579, considered Very Poor. A 400 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 poor credit score falls between 500 and 600, while a very poor score falls between 300 and 499. “In general, people with higher scores can get more credit at better rates,” VantageScore says.
As it's the largest of the credit reporting organisations, most Australian banks use Equifax credit scores in their assessments of credit worthiness. However, they can also use information from the other credit reporting organisations, as well as their own internal risk assessment measures.
Your repayment history information stays on your report for two years, while credit enquiries, payment defaults, overdue accounts, and court judgements will stay on your report for five years. Overdue accounts listed as serious credit infringements will stay on your report for seven years.
Although it's typical for your credit score to fluctuate by a few points from one month to the next, significant credit score improvements take time. If you are hoping to boost your credit score by 200 points in 30 days, be aware that it is impossible to promise a certain increase over a predetermined period of time.
Average Recovery Time
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.
70% of U.S. consumers' FICO® Scores are higher than 650. What's more, your score of 650 is very close to the Good credit score range of 670-739.
There isn't a set credit score that each person starts out with. Instead, if you don't have any credit history, you likely don't have a score at all.
On-time payments
The best way to get your credit score over 800 comes down to paying your bills on time every month, even if it is making the minimum payment due. According to LendingTree's analysis of 100,000 credit reports, 100% of borrowers with a credit score of 800 or higher paid their bills on time, every time.
You may still get credit products with a 600 credit score. However, you're more likely to get better terms if you have a good credit score or higher (670+). So you may improve your ability to get a new credit card or personal loan with better rates and higher limits by raising your score.
You can borrow anywhere from a few thousand dollars up to about $50,000 with a 600 credit score. The exact amount of money you will get depends on other factors besides your credit score, such as your income, your employment status, the type of loan you get, and even the lender.