Many people assume there's a magic credit score you need to reach before you can buy a home. In reality, lenders look at much more than a number. But your score and your credit file do matter.
Australia's credit bureaus
There are three main credit reporting bodies:
- Equifax: scores out of 1,200
- Experian: scores out of 1,000
- illion: scores out of 1,000
Each uses its own model, so your scores will differ between bureaus.
What's considered a good score?
Roughly speaking, for Equifax:
- Excellent: 833 to 1,200
- Very good: 726 to 832
- Good: 622 to 725
- Average: 510 to 621
- Below average: 0 to 509
Experian and illion use different bands. Check each bureau's website for their scale.
There's no single minimum
Lenders each have their own scoring system and policy. They may use your bureau score, but they also look at:
- Repayment history: on-time or late payments over the past two years
- Defaults: unpaid debts over $150 that are 60+ days overdue
- Court judgments and bankruptcy
- Enquiries: how many times you've applied for credit recently
- Existing debts and limits
A borrower with an average score but a clean recent history may be approved. A borrower with a high score but a recent default may not.
Comprehensive credit reporting
Since comprehensive credit reporting started, your file shows positive information, like on-time payments on credit cards and loans, as well as negatives. This means good behaviour now counts in your favour.
How to improve your score
- Pay everything on time. Set up direct debits.
- Reduce credit card limits and close unused cards.
- Limit new applications. Space them out.
- Fix errors. Dispute anything incorrect with the bureau.
- Pay off defaults. A paid default still shows, but it looks better than unpaid.
- Keep old accounts in good standing, if they don't cost you anything.
How long do negatives stay on your file?
- Credit enquiries: 5 years
- Defaults: 5 years (paid or unpaid)
- Repayment history: 2 years
- Court judgments: 5 years
- Bankruptcy: generally 2 years from discharge, or 5 years from the date of bankruptcy, whichever is later
What if your credit isn't great?
Specialist lenders offer loans for borrowers with past credit issues, usually at higher rates. Once you've built a good repayment history, you can often refinance to a mainstream lender. See our guide to bad credit home loans.
Frequently asked questions
Can I check my credit score for free?
Yes. You can get free credit reports from each bureau, and many free services show your score.
Does checking my own score lower it?
No.
Will one late payment ruin my chances?
Not usually. Lenders look at patterns. One late payment is less concerning than repeated misses.
Want to know how lenders will view your credit file? Call Finfident on 0424 545 654. We'll help you understand your position before you apply.
This article is general information only and doesn't take into account your objectives, financial situation or needs. Figures, rates and scheme rules are current as at October 2026 and can change. Finfident Finance Brokers (ABN 94 679 280 801) is Credit Representative 569374 of Outsource Financial Pty Ltd (ACN 131 090 705), Australian Credit Licence 384324.