Credit scores generally range from 300 to 850.
A 900 credit score may be the highest on some scoring models, but this number isn't always possible. Only 1% of the population can achieve a credit score of 850, so there's a certain point where trying to get the highest possible credit score isn't realistic at all.
While achieving a perfect 850 credit score is rare, it's not impossible. About 1.3% of consumers have one, according to Experian's latest data. FICO scores can range anywhere from 300 to 850. The average score was 714, as of 2021.
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.
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.
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.
Which credit score do lenders actually use? Most lenders use the FICO credit score when assessing your creditworthiness for a loan. According to FICO, 90% of the top lenders use FICO credit scores.
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.
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.
This means getting car approval will be easier and you may even get more loan options. Generally, lenders consider a good credit score in Australia as something around 846 which is classified as 'Excellent' by most credit agencies.
While the most common FICO and VantageScore models only go up to 850, the FICO Auto Score and FICO Bankcard Score models range from 250 to 900.
There's not a 900 credit score, at least not in traditional credit scoring. There are FICO auto and bank card scores with a range from 250 to 900, but generally, the credit score consumers are concerned with only goes to 850.
According to FICO, about 98% of “FICO High Achievers” have zero missed payments. And for the small 2% who do, the missed payment happened, on average, approximately four years ago. So while missing a credit card payment can be easy to do, staying on top of your payments is the only way you will one day reach 850.
A credit score of 1,000 is not possible because credit scoring models simply do not go that high. According to Experian, some credit scoring models reach upwards of 900 or 950, but those are industry-specific scores that are only used by certain institutions.
Many factors contribute to a low credit score, including little or no credit history, missed payments, past financial difficulties, and even moving home regularly. Credit reference agencies collect information from public records, lenders and other service providers, before generating a 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.
Generally, Credit Karma is the overall best site in terms of getting free credit scores and free credit reports. It provides free weekly scores and reports from Transunion and Equifax that are available without having to provide your credit card first.
Generally speaking, you'll need a credit score of at least 620 in order to secure a loan to buy a house. That's the minimum credit score requirement most lenders have for a conventional loan. With that said, it's still possible to get a loan with a lower credit score, including a score in the 500s.
Your credit scores typically update at least once a month.