FICO scores are generally known to be the most widely used by lenders. But the credit-scoring model used may vary by lender. While FICO Score 8 is the most common, mortgage lenders might use FICO Score 2, 4 or 5.
Since everyone's credit journey is different, there's no one standard score everyone starts out with. And you can have different credit scores depending on the credit-scoring model—either FICO or VantageScore.
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.
A credit score of 800 means you have an exceptional credit score, according to Experian. According to a report by FICO, only 23% of the scorable population has a credit score of 800 or above.
An 800 credit score is not as rare as most people think, considering that roughly 23% of adults have a credit score in the 800-850 range, according to data from FICO. A score in this range allows consumers to access the best credit card offers and loans with the most favorable terms.
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.
The average Australian Equifax credit score is 846 out of a possible 1,200, which lies in the 'very good' range.
510-621: Firmly in the average range, people with this score often have to provide additional requirements to be approved. Even with some bad marks in your credit score, your lenders will still look at other credit criteria to determine if home loan approval is possible.
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.
If you have a late phone payment of at least $150 that is overdue by more than 60 days, it will be considered a default. At this point, your phone provider will report this to the credit reporting agencies, which means your credit score may fall. The default will also remain on your credit file for 5 years.
When an individual applies for a credit card or a loan, the CIBIL score is checked by the bank to determine the applicant's creditworthiness.
The main reason your TransUnion and Equifax scores may look different from one another is that the companies use different algorithms to compute your score.
While most lenders use the FICO Score 8, mortgage lenders use the following scores: Experian: FICO Score 2, or Fair Isaac Risk Model v2. Equifax: FICO Score 5, or Equifax Beacon 5. TransUnion: FICO Score 4, or TransUnion FICO Risk Score 04.
Those with credit scores from 580 to 669 are generally seen as “subprime borrowers,” meaning they may find it more difficult to qualify for better loan terms. Those with lower scores – under 580 – generally fall into the “poor” credit range and may have difficulty getting credit or qualifying for better loan terms.
With that in mind, ClearScore is as accurate as the most trusted credit reference agencies, but mistakes and errors are quite common. It's important to search your credit score for errors and request they be removed. Even errors can stop you from securing credit or a mortgage.
Yes, the big four banks of Australia tend to check credit reports from all three credit bureaus i.e. Equifax, Illion and Experian, as defaults listed on Experian might not show up on other credit reports.
Similar to Experian, Equifax is also a multinational credit reporting agency. It is Australia's largest consumer credit reporting agency. It collects credit information reported by financial institutions and calculates your Equifax credit score accordingly.
Your Equifax score
ClearScore gets your credit score and report from Equifax. Depending on the date of your report, there could be slight differences in the score we have and the one Equifax has.
What is the highest credit score you can get? 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.
You can improve your credit score by opening accounts that report to the credit bureaus, maintaining low balances, paying your bills on time and limiting how often you apply for new accounts.
Your score falls in the range of scores, from 800 to 850, that is considered Exceptional. Your FICO® Score and is well above the average credit score. Consumers with scores in this range may expect easy approvals when applying for new credit. 21% of all consumers have FICO® Scores in the Exceptional range.