Average Credit Score Australia – What To Know

Sometimes you just want to know if your life is on track, and for some people, this means working out the average credit score Australia. Several factors per individual influence the average credit score Australia. However, the ‘average’ title is also one of the five credit score bands.

Confusing, we get it. There’s a lot to know when it comes to your credit score, but the topic is vital when discussing your financial future. Not only is it wise to understand credit scores in general, but it can also be beneficial to know about no credit check loans and how you can receive loan approval if you have poor credit.

Please note that specific ideas and products presented in this article may not be on offer by Monzi or the lenders we work with. This article presents only general information. Consider seeking professional financial, taxation, legal or other advice to check how the information and ideas presented on this website relate to your unique circumstances.

What is a credit score?

For a majority of lenders, a credit score is the starting point for your cash loans application. Typically, lenders are often looking for the average credit score Australia or better when lending. But what does this mean? Well, a credit score is a numerical value that shows your lender how well you have previously managed your finances.

Your credit score is attached to your credit report, which collects financial and personal information. Applications for credit, promptness with your repayments, and outstanding debts influence the quality of your score. If you have continuously managed your finances well and been prompt and efficient with your borrowing, you will likely have a higher score. This is going to mean that lenders may be more willing to work with you. Alternatively, your score could be pretty low if you have a terrible past with your money management. This means that you may struggle when looking to borrow credit.

What is the average credit score for Aussies?

In terms of the average credit score Australia, Monzi cannot say what score most Australians have. However, there are five credit ranks (varying depending on the credit bureau that generates your report). The ranks are as follows:


  • 800 – 1,000 (Experian)
  • 833 – 1,200 (Equifax)

Very Good

  • 700 – 799 (Experian)
  • 726 – 832 (Equifax)


  • 625 – 699 (Experian)
  • 622 – 725 (Equifax)


  • 550 – 624 (Experian)
  • 510 – 621 (Equifax)

Below average

  • 0 – 549 (Experian)
  • 0 – 509 (Equifax)

Generally, if you have an average credit score Australia or a below-average score, you may struggle with getting loan approval. If this is the case, you may want to reevaluate your financial position before moving forward.

What is an acceptable credit score?

An acceptable credit score depends on what kind of loan you are applying for and the lender you apply with. If you apply through a traditional financial institution you may struggle with approval for any score below the ‘good’ rank. If, however, you have an average credit score Australia, you may have more luck through a private lender.

The lenders in the Monzi network are private lenders willing to try and help you with your personal loan needs. As strict lending criteria do not restrict private lenders, they may be able to help you if your credit score is looking shabby. This is because they won’t stop your application at the credit evaluation. They’ll also look at your income and expenses, debts and the job you have. If you think this could be a better fit for you, why not find a lender through the Monzi lender-finder. If you apply within business hours, we may be able to match you to a lender in as little as 60 minutes.

Why is a credit score important?

When it comes to taking a loan, your credit is essential for a few different reasons. Your score helps your lender to determine:

  1. Whether to approve your application,
  2. How much they will lend you, and
  3. The associated interest rate and loan term

When you apply for credit, you want to know that you’ll receive approval – ideally for your original requested amount. You also want to get the best deal possible when it comes to interest and terms.

If you have multiple denied applications for credit showing on your report, this may be a good indicator to your next lender that something is wrong, and that you may not be so trustworthy. Not only this, but your credit report undergoes evaluation when deciding your credit card limit. High limit cards that can earn you various rewards points are available. Meaning good credit may be worthwhile for contributing to certain rewards.

What displays on your credit report?

A lot of information displays on your credit report. Depending on the severity of the information, how long it displays will vary. Here are the potential listings for your credit report and how long they will remain.

Two years

  • Your repayment history, whether good or bad. This will help your lender gauge how responsible you are.

Five years

  • Any credit enquiries or applications for credit, whether small loans, credit cards or lines of credit.
  • Overdue accounts listed either as defaults or clearouts
  • Any court judgements
  • Declarations of bankruptcies

Seven years

  • Serious credit infringements, including fraud or disappearing for extended periods without making your repayments or contacting your creditor.

Due to this, if you have an average credit score Australia, your biggest ally for fixing your credit is time. You cannot wipe your credit report clean. If you have made past mistakes and have been working to better yourself, seeking private loans may be the best loan option available. At least until the defaults remove themselves from your report.

Do you have to pay to view your credit score?

You may be entitled to a free copy of your credit report once or twice a year. You can have your report generated by any Australian credit bureau. However, Equifax and Experian are the big names in the industry. You may have to pay a small fee to view your report more than once or twice a year. Along with this, if you need a copy of your report fast-tracked, this may also require you to pay a fee.

However, it is unlikely that you will need a copy of your credit report more than once a year. And, likely, an institution that requires a copy may just pull one without needing you to get involved.

Average credit score for personal loans

Some personal loan lenders may be willing to work with you regardless of your average credit score Australia. Private lenders can be more lenient, where banks may be likely to turn you down for having a score beneath the ‘good’ rank.

The lenders in the Monzi network, for example, understand that people make mistakes sometimes. If you have an average credit score Australia, this doesn’t make you a bad person. This said, some personal loan lenders might be willing to skip the credit check entirely. This is because if the other aspects of your application are up to standard, such as having a regular and appropriately sized income, you may still be able to be approved.

However, if you seek bad credit loans and ask your lender to skip the credit check, they may still refuse. This does not have to be the end of the world. As, even if your lender performs a credit check, they will still look at all your other information. Meaning that whilst you may only have an average credit score Australia, you could still receive approval.

Private lenders vs bank lenders

You can find both bank lenders and non bank lenders in circulation. So, which is the better decision? There are a few differences between each; however, private lenders can usually offer much more flexibility. On the other hand, however, bank lenders can potentially give your loan more stability in the event of a crisis.

But, private lenders, such as the lenders Monzi works with, aren’t just suitable for people with bad credit. There are people from other walks of life that may also fail to meet a bank lenders criteria. These could include some types of small business owners, the disabled, or single parents. The reality is that bank criteria are not inclusive if you are not the standard type of person who works for someone else, is able-bodied, or has a sound support system.

In some instances, you may also find better customer service when operating through a private lender. This is because banks have so many applications through their systems a day that you may end up becoming just another number. Your interaction with a private lender may feel more personable.

What credit score do you need to buy a house?

If you are looking to apply for a home loan and have an average credit score Australia, you may need to search ‘how do I fix my credit’. This is because the higher your credit score is, the more likely you are to get home loan approval.

Typically, however, you may be able to qualify if your score is good or higher and you don’t have anything concerning listed on your credit report. This may vary depending on where you live. For example, a good credit score may get you the average Perth home. However, as housing prices are spiking in Sydney, you may be unlikely to qualify for enough money to buy near the city if your score is below ‘very good’.

Therefore it is hard to provide a general blanket statement answer to this question. If you aren’t sure whether you will qualify for a mortgage loan, why not reach out to your local lender or mortgage broker to ask them some questions.

Average credit score Australia

How to lower your risk to a lender?

Depending on the lender and the loan, there may be ways to lower your perceived risk if you only have an average credit score Australia. The first of these is to be willing to put forward collateral. Securing your loan or supplying a deposit that aligns with your loan-to-value ratio is a great way to show your lender that you are serious.

Another way you may be able to do this is by installing positive behaviours in the lead up to your loan application. Whilst only time can change what is on your report, if you can show your lender that you have been making positive money management steps, they may be more lenient.

Outside of this, if you already have a bad credit history, there may not be much else you can do. If this is the case and you need cash loans, why not try the Monzi lender-finder?

Average credit score by age

There may be data in circulation demonstrating the average credit score Australia by age. However, our speciality at Monzi is matching people with lenders that may help with their personal loans, not demographical credit score analysis.

However, it would be fair to assume that the average Aussie’s credit score will increase over their lifetime. There is potential that around the age of 20-40, your credit may struggle as you likely are encountering milestones, including buying a first home and raising a family. This may require more credit as you are still establishing yourselves in this period of life. Then as you get to the back end of your life and repay your mortgage, your credit score may start looking quite lovely again.

Regardless of what stage you’re at, the Monzi lenders may be able to help you. No matter the reason, if you need cash, you won’t be discriminated against solely on the basis of credit score.

How long does it take to improve your credit?

How long it might take you to improve your credit score and lift it from the average credit score Australia to good or better will depend on what’s listing on your report. If you have struggled with some of your repayments, it may take two to five years before your report has fully repaired itself. Note that during this time, you will want to ensure you are making positive money choices.

Although, if you have committed fraud or some other hefty crime, it may be seven years before you can move beyond the bounds of a negative credit report. If you choose to apply with a Monzi lender, having made past mistakes and showing them how you are bettering yourself, you may still receive approval.

Can you hire a company to help with credit?

Yes, you can hire a credit repair Australia company to help with your average credit score Australia. These companies may be helpful when your report looks terrible because they may help you get any mistakes off your report that are holding you back. This can be very useful if you don’t know how, or who, to call to get this done yourself. These errors can come in the form of mistyped personal information or financial information that was wrongly input. Outside of fixing mistakes and helping you create better habits, there isn’t much else these companies can do.

The problem with these types of companies is that there is no guarantee that they can help you. However, the bonus is that as they cannot guarantee they can help, you won’t be charged upfront. Therefore if you encounter a company wanting to charge you upfront, this may be a good indication of a scam. These services may also be quite expensive overall. Therefore trying to fix what you can, independently, may benefit your budget. The government’s MoneySmart site has a page on credit scores and credit reports that discusses this.

The Monzi network and credit scores

Monzi works with several lenders who will try their best to reach an outcome that suits you for your loan. While each lender in our network may operate differently, they’ll do their best to work with you even if you have an average credit score Australia.

To apply for a loan through the Monzi lender-finder, you will need to be over 18 and an Australian citizen or permanent resident. You will also need to be able to show three months of regular income. If you can do so, you will be providing enough information for your lender to conduct a fair assessment beyond your credit score. Please note, however, that law requires all Australian lenders to ensure that you can repay a loan before lending to you. A denied application is often in your best interest as it will help prevent you from getting into debt.

No credit check loans

Speaking of flexibility in our lenders, you may have the opportunity to request no credit check loans from your lender. Please note that the is not something every lender will permit. Each lender has its business structure that they abide by. Some lenders may be able to offer this; however, if yours doesn’t, you may be able to apply again to potentially get rematched (you may not get a different lender the second time).

If you find a lender who will skip the credit check, this may be lucky for you. If you are avoiding a credit check because you’ll struggle with a loan, borrowing may not be smart. Consider loan alternatives when you are in a tight spot rather than potentially putting yourself into debt. Looking for a no credit check loan because you know you have made past mistakes and need someone to take a chance on you? This could be an adequate motivation.

Secured vs unsecured loans for bad credit

When applying for loans with an average credit score Australia one of the loan components you may encounter is the need for collateral. Generally, applying with a Monzi lender for a loan amount under $2,000 collateral may not be required. However, this is just a guide, and you will have to verify whether your lender uses secured vs unsecured loans.

Generally, you will need to secure any loan you take with either an asset or a deposit in most circumstances. Your lender will typically have an approved securities list (ASL) that you can read to see their preferences.

Same day loans with bad credit

If you are on the lookout for loans for bad credit ratings that also double as same day loans, Monzi may be able to help. Providing you place your application during business hours, it’s possible you can start and finish the loan process within a day. This can be excellent as it allows Monzi personal loans to double as emergency loans when you’re in a pinch and need fast cash loans. The deal is even better if your credit score is looking somewhat shabby. Monzi can potentially find you a lender who may be able to cater to this.

Loans for the unemployed, pensioners, and Centrelink customers

Continuing with the notion that personal loans are more inclusive than bank loans, private lenders can work with the unemployed, pensioners, and Centrelink customers. Loans for people on Centrelink, pension loans, and loans for unemployed are potentially available. However, you will need to show that you have an adequate and regular income for this to occur.

Meaning that if you are on a pension but only supporting yourself with money left over to fund a loan, you may attain loan approval. However, if you receive Centrelink payments but can’t fund your loan and feed your family, you may not qualify.

Debt consolidation for bad credit

Maybe you have multiple outstanding loans and have decided that you want to get on top of them? One option available to you is debt consolidation. You will need to have a score that will permit you to borrow as much or slightly more than you need. Then, you may be able to roll all your debts. This can be an excellent way to streamline your repayments. Meaning you will only have one repayment date, one term, and one interest rate. Providing you take a good deal, debt consolidation could even save you money.

Joint loans if one partner has bad credit

Suppose you are applying for a joint personal loan or a joint home loan; both credit scores matter. If your partner has bad credit, this may decrease your borrowing capacity. This is because, generally, the higher your credit score, the more you may be entitled to borrow. Therefore if your partner has a weaker score, you may jointly be able to borrow less.

Does your partner has an awful score? It may be worth asking yourself whether you can trust them with this big life step. Are you confident in your partner’s ability to make the repayments with you equally? If so, then consider proceeding with the loan.

Apply for a loan through Monzi

Need money and a lender who may be able to help your average credit score Australia? The Monzi lender-finder is here. If you think you are ready to begin an application, it couldn’t be easier.

All you have to do is click the ‘apply now’ button or scroll up to our loan slider to begin. From there, you just need to tell us how much you are looking to borrow. Then, give us a little extra information about you. From there, we will do our best to try and match you with a lender in potentially as little as 60 minutes.

Almost ready to begin but still have some questions? The Monzi team can help. Email your queries to hello@monzi.com.au, and a member of our team will be happy to help where we can.

Check out our socials

Just used the lender-finder? Maybe you enjoyed the article? If you want to read more articles from Monzi or stay in the loop, why not check out our socials? You can find Monzi on Facebook, Instagram, Twitter and Pinterest. That way, you’ll then also have the option to DM the team any questions you may have, along with keeping informed.

So, what are you waiting for? We look forward to seeing you there?

Factor In Costs

You won't use a penny to apply for our lender-finding service, but here's some costs you could expect from a lender

Loan amount

$300 - $2,000


12 months (minimum)

12 months (maximum)


20% upfront establishment fee

+ 4% monthly fee


Representative example based on a loan of $1000 over 6 months a borrower can expect to pay a total of $1440.

Disclaimer: Under the current legislation, all Small Amount Credit Contract loan providers don’t charge an annual interest rate. The maximum you will be charged is a flat 20% Establishment Fee and a flat 4% Monthly Fee. The comparison rate on loans between $300 and $2000 could be up to 199.43%. The minimum loan term is 16 days and maximum loan term is 12 months. Representative example based on a loan of $1000 over 6 months a borrower can expect to pay a total of $1440. WARNING: This comparison rate is valid only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate with the lender that finances your loan.

Loan amount

$2,100 - $4,600


13 months (minimum)

24 months (maximum)


47.8% Annual Percentage Rate (APR)

65.85% Comparison Rate p.a.


Representative example based on a loan of $2500 over 24 months a borrower can expect to pay a total of $4,556.88.

The maximum interest rate for a Medium Amount Credit Contract is 47.8%. Comparison Rate 65.85% p.a. The maximum loan term is 24 months. Representative example based on a loan of $2500 over 24 months a borrower can expect to pay a total of $4,556.88. WARNING: This comparison rate is valid only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate with the lender that finances your loan. Credit criteria and terms and conditions apply.

Loan amount

$5,000 - $15,000


13 months (minimum)

24 months (maximum)


17% Annual Percentage Rate (APR)

36% Comparison Rate p.a.


Representative example based on a loan of $10,000 over 36 months a borrower can expect to pay a total of $16,489.

The starting interest rate for a Personal Loan is 17%. Comparison Rate 36% p.a. The maximum loan term is 24 months. Representative example based on a loan of $10,000 over 36 months a borrower can expect to pay a total of $16,489. WARNING: This comparison rate is valid only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate with the lender that finances your loan. Credit criteria and terms and conditions apply.