If you’ve pulled up your credit report and seen a number that looks lower than you expected, you’re not alone. One of the most common questions we hear is simply: is this a bad credit score? The honest answer is that it depends on which bureau produced the report, because Australia doesn’t have one single credit score — it has three. Here’s how the bands generally work, what tends to pull a score down, and why a low score today isn’t necessarily where things stay.
Australian Specialist
Credit Clean Australia
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- Both Equifax & Experian credit files audited
- Potentially incorrect or disputable listings identified
- Understand what’s affecting your credit score
- Clear options and next steps
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Next Steps After Your Assessment
Investigation
We investigate the circumstances behind each listing on your credit file, identifying potential breaches of the Privacy Act or non-compliance with the Credit Reporting Code. This is completed with you over the phone through 40+ simple yes, no, or unsure questions, along with your personal circumstances at the time.
Approved or Denied
If our investigation identifies multiple potential breaches, you may be approved for our credit restoration services. If not, your application will be declined, and your consultant will explain why, providing complete clarity.
Note: Approval does not guarantee the removal of any listing.
Disputes & Result
Formal removal requests are lodged with Equifax, Experian, and relevant credit providers, with escalation to AFCA, the OAIC, courts, or other bodies where required.
If a breach is confirmed, listings may be removed, in most cases boosting your credit score and helping future finance applications.
Australia has three credit bureaus, not one
In Australia, your credit history is held by three separate credit reporting bodies: Equifax, Experian and illion. Each one can hold slightly different information, depending on which lenders and organisations report to them, so it’s entirely possible to have three different scores at the same time. That’s why checking just one report can give an incomplete picture of where you actually stand.
- Equifax generally scores on a range of 0 to 1200.
- Experian generally scores on a range of 0 to 1000.
- illion generally scores on a range of 0 to 1000.
Because the scales differ, a score of “700” means something quite different depending on which bureau issued it. This is one of the most misunderstood parts of credit reporting in Australia, and it’s worth keeping in mind any time you see a score quoted without its source.
What do the score bands generally mean?
Each bureau groups scores into bands that are usually described in similar terms, even though the exact cut-off numbers differ between them and can be updated over time. Broadly, the bands run from:
- Below average — the lowest band, often associated with a history of missed payments, defaults, or other adverse listings.
- Average — a middle band that may still limit some lending options or affect the terms offered.
- Good — generally reflects a reasonably steady credit history.
- Very good — reflects a history with few or no negative marks.
- Excellent — the highest band, typically associated with a long, clean credit history.
Because the precise numbers that separate these bands vary by bureau and can change, it’s not accurate to say a single figure applies across the board. If you want to know exactly where your score sits, the only reliable way is to check your actual report from each bureau rather than relying on a general rule of thumb. Our guide on how to check your credit report for free walks through how to do that.
What can drag a score down?
A low or “bad” score is rarely caused by one single thing — it’s usually a combination of factors building up over time. Common contributors include:
- Defaults — a missed payment that’s been listed as a default by a credit provider, generally once it’s significantly overdue.
- Late payments — repeated late or missed repayments on loans, credit cards or even some utility and telco accounts.
- Court judgments — formal legal actions related to unpaid debts.
- Bankruptcy or debt agreements — these can weigh heavily on a credit file for an extended period.
- Too many credit enquiries in a short time — applying for multiple loans or credit cards in quick succession can suggest financial stress to lenders, even if you’re not accepted for any of them.
- High credit utilisation — consistently using a large portion of your available credit limit.
It’s also worth being clear about what a low score doesn’t mean. It’s not a permanent label, and it’s not necessarily a reflection of your character or overall financial position — it’s a snapshot based on the information currently listed on your file.
Think a listing on your file could be challenged?
Book a $39.95 credit file assessment — we audit both your Equifax and Experian files and tell you straight what can and can’t be disputed. If we can’t help, we tell you that too.
Can a low score change?
Scores are not fixed. They’re recalculated as new information is reported, so as your credit file changes — for example, as older negative listings age off, as repayment history improves, or as an incorrect listing is corrected — your score can move too. There’s no set timeframe for this, and outcomes vary from person to person depending on what’s actually on the file.
It’s also important to be realistic: listings that are accurate generally cannot be removed simply because they’re inconvenient. Credit reporting bodies and credit providers are required to report accurate information, and a legitimate default or missed payment will typically stay on file for the period set out in credit reporting law. What can sometimes be addressed is information that’s incorrect, listed against the wrong person, missing required detail, or reported outside the rules — those are the kinds of listings that may be disputed and can potentially be corrected or removed.
This is where a proper credit file assessment helps. Rather than guessing, it’s about reviewing what’s actually on all three reports and identifying anything that looks wrong, outdated, or open to challenge. You can read more about the process on our credit score improvement page, and our guides hub has further reading on credit reports, disputes and related topics.
Frequently asked questions
What is considered a bad credit score in Australia?
There’s no single number that applies across the board, because Equifax, Experian and illion each use their own scale and their own band cut-offs. Generally, the lowest band on any bureau’s scale — often labelled “below average” — is what’s typically referred to as a bad or low credit score. The best way to know where you stand is to check your actual score with each bureau rather than relying on a generic figure.
Why do I have different scores with different bureaus?
Not every lender or organisation reports to all three bureaus, so each one can hold slightly different information about you. Different scoring models are also used by each bureau. This is why it’s common to see a noticeably different score on your Equifax report compared with your Experian or illion report.
Can a bad credit score be fixed?
It depends on what’s causing it. Information that’s incorrect, outdated, or listed in breach of the credit reporting rules may potentially be disputed and corrected or removed. Accurate listings, such as a genuine default, generally cannot be removed and will typically remain on file for the period set out in law. Many people are able to improve their position over time through a combination of correcting errors where they exist and building a stronger repayment history going forward.
How long do defaults and late payments stay on a credit file?
Negative listings such as defaults are generally kept on file for a set period under Australian credit reporting law, though the exact timeframe can depend on the type of listing. Because rules and individual circumstances vary, it’s best to check the specific listing on your report rather than assume a general timeframe applies.
If you’re not sure where you stand, the first step is finding out — properly, across all three bureaus, not just one. Book your $39.95 credit file assessment and get a clear picture of what’s actually on your file.
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A $39.95 credit file assessment shows you every default, judgement and enquiry on your Equifax and Experian files — and which ones may be open to challenge.
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