How to Check and Improve Your Credit Score

What is a Credit Score?

A credit score is a three-digit number that reflects your reliability as a borrower. It’s based on your financial history, like how consistently you pay bills, whether you’ve defaulted on loans, and how many times you’ve applied for credit. In Australia, credit scores typically range between 0 and 1,200; the higher your score, the better your chances of getting approved for a loan with favourable terms.

Credit scores are managed by three major credit reporting agencies in Australia:

• Equifax
• Experian
• Illion

Each agency has its own scoring system and may hold slightly different information, so your score can vary depending on where you check it.

At Stryve Finance, we see firsthand how important this number is when applying for a mortgage. Lenders use your credit score as a snapshot of your financial trustworthiness, helping them decide:

• If they should lend to you
• How much they’re willing to lend
• What interest rate to offer

Even a slight difference in your score can impact your loan options and potentially save or cost you thousands over the life of a mortgage.

What’s Considered a Good Credit Score in Australia?

Not all credit scores are created equal. In Australia, what's considered "good" depends on the credit reporting agency you're checking with. Each one uses slightly different scales, but the general rule is simple: the higher your score, the lower the risk you pose to lenders.

Here’s a quick breakdown of the score ranges used by the three leading credit agencies:

So, what does this mean for you?

• If your score is 700 or higher, you're in a strong position with most lenders.
• A score in the 600s is generally acceptable but may come with slightly higher rates or stricter loan conditions.
• Anything below 600 could make getting a traditional home loan challenging. At Stryve Finance, we work with flexible lenders who assess your complete financial picture, not just your score.

Stryve tip: Even if your score is “good,” improving it to “very good” or “excellent” can make a meaningful difference in your loan approval speed, interest rates, and overall borrowing power.

How is a Credit Score Calculated?

Your credit score isn’t random; it’s built from specific financial behaviours and patterns that show how you’ve managed money over time. Each credit reporting agency (Equifax, Experian, Illion) has its own scoring model, but they generally consider similar factors when calculating your score.

Here’s a breakdown of what influences your credit score in Australia:

• Repayment History (35–40%)

  The most significant factor is your history of paying credit cards, loans, or bills on time. Missed or late payments, even for phone or utility bills, can seriously harm your score.

• Credit Utilisation (20–30%)

  This measures how much of your available credit you’re using. If your credit card has a $10,000 limit and you're using $8,000, that 80% utilisation signals risk to lenders. Ideally, stay below 30%.

• Credit Applications / Inquiries (10–20%)

  Each time you apply for credit (loans, credit cards, etc.), a "hard inquiry" is recorded. Too many in a short time can lower your score and make you appear financially unstable.

• Defaults, Judgments, or Bankruptcies (20–30%)

  Major adverse events, such as defaults, debt agreements, or bankruptcies, have a heavy impact and can stay on your credit report for 5–7 years.

• Length of Credit History and Account Types (10–15%)

  Long-standing accounts with a positive history contribute positively. A healthy mix of credit (e.g., credit card + home loan) also helps.

How This Affects You as a Borrower

At Stryve Finance, we look beyond just your score, we help you understand why it’s at the current level, and what steps you can take to improve it. For example:

• If your score is low due to a high credit utilisation ratio, we may advise paying down balances before applying for a mortgage.
• We suggest pausing new applications for a few months if they are impacted by recent credit applications.

How to Check Your Credit Score for Free in Australia

Checking your credit score is free, easy, and doesn’t affect your score, yet surprisingly, many Australians don’t do it regularly. Knowing your score before applying for a mortgage or personal loan can give you a huge advantage.

Where to Get Your Free Credit Score

You’re entitled to one free annual credit report from each central credit reporting agency. Here’s how to get yours:

You can also use free tools such as:

• ClearScore: Partners with Experian
• Credit Simple (Illion): Score and report updates monthly
• Finder or Canstar: Easy-to-use credit score dashboards

What You’ll Need

To verify your identity, you’ll usually need:

• Driver’s licence or passport
• Medicare card
• Current residential address

Expect to receive your report within 1–10 business days, depending on the provider.

Be Cautious of These

• Never pay for your credit score. It’s always free if you go through the proper channels.
• Avoid sites that ask for credit card details. These are usually trying to upsell paid services or collect data.
• Some platforms may use your data for marketing purposes; always review their privacy policy before signing up.

Why This Matters for Your Home Loan

At Stryve Finance, we recommend that all our clients check their credit scores before applying for a home loan. This helps us match you with the right lender, whether you are in the “Excellent” bracket or working to improve your standing.

Knowing your score empowers you to:

• Fix errors before applying
• Understand your borrowing power
• Avoid loan rejections that can lower your score further

How to Improve Your Credit Score Quickly

Improving your credit score isn’t just about waiting; it’s about taking smart, consistent actions demonstrating financial responsibility. Whether you’re recovering from past mistakes or just looking to boost your score before applying for a mortgage, here are proven strategies to help:

• Pay Your Bills on Time – Always

  This is the #1 factor in your credit score. Missing even one payment on a loan, credit card, or utility bill can have a lasting impact.

  Tip from Stryve: Set up automatic payments or calendar reminders to never miss a due date.

• Reduce Existing Debt

  High credit card balances or outstanding personal loans signal risk to lenders. Aim to keep your credit utilisation below 30% of your available credit limit. For example, if you have a $10,000 credit limit, stay under $3,000.

• Limit New Credit Applications

  Whenever you apply for a loan or credit card, a “hard inquiry” appears on your report. Too many in a short time can lower your score.

  Only apply when necessary, and avoid “shopping around” with multiple lenders simultaneously.

• Dispute Errors on Your Credit Report

  Sometimes, your report may contain incorrect information, such as a payment you made on time being listed as late. Contact the credit agency directly and ask for a correction. You’re legally entitled to accurate information.

• Keep Old Accounts Open

  The length of your credit history helps build your score. Don’t rush to close old credit cards if they’re in good standing, especially if they don’t carry an annual fee.

• Diversify Your Credit Mix

  Having a combination of credit types, such as a credit card, car loan, and mortgage, can benefit your score, assuming they’re managed well. Stryve Finance provides information on improving your bad credit for home loans, but it is still better if you avoid it.

Mistakes That Can Lower Your Credit Score

Even small missteps can damage your credit score, often without you realising it. At Stryve Finance, we often help clients who didn’t know certain actions were hurting their ability to get a home loan.

Here are the most common credit score mistakes to avoid:

• Missing or Late Payments

  Even a single late payment on a credit card, utility bill, or loan can damage your credit report. Why it matters: Lenders see this as a sign you might miss future repayments.

  Tip: Set up auto-payments for all recurring bills to protect your history.

• Maxing Out Your Credit Cards

  Using most or all of your available credit limit can signal your reliance on debt, even if you make timely payments. Ideal utilisation: Keep your balances under 30% of the credit limit.

• Too Many Credit Applications in a Short Time

  Each loan or credit card application adds a hard inquiry to your report. Impact: Multiple inquiries in a short period can make you look financially unstable.

  Space out applications and apply only when necessary.

• Letting Errors Go Unchecked

  Incorrect listings like accounts that don’t belong to you or wrongly reported defaults, can drop your score. Solution: Check your credit report regularly and dispute any inaccuracies.

• Ignoring Identity Theft

  If someone uses your details to apply for credit in your name, your score can be impacted, and your financial reputation can be damaged. Prevention: Use credit monitoring tools and freeze your credit report if you suspect fraud.

• Closing Old Credit Accounts Too Soon

  The length of your credit history is a factor in your score. Closing an old account can reduce your average account age and affect your total available credit.

  Keep older accounts open if they’re in good standing and fee-free. Bonus Tip from Stryve Finance: Many lenders will examine your financial behaviour in the last 6–12 months most closely. Cleaning up now, even if your past isn’t perfect, can still dramatically boost your borrowing chances.

What Happens If You Have a Bad Credit Score?

A bad credit score doesn’t mean the end of your homeownership dreams, but it can make things more challenging. At Stryve Finance, we regularly work with Australians who think they’ve been locked out of the property market, only to discover options are still available. Here’s what a lower score might mean and what you can do about it.

Common Consequences of a Low Credit Score

Don’t Panic – There Are Still Options

At Stryve Finance, we understand that life happens — job loss, divorce, illness, and even simple mistakes can affect your score. The good news? Your credit score is not permanent, and:

• We work with non-bank lenders and alt-doc specialists
• We can match you with lenders that offer flexible credit policies
• We’ll help you build a game plan to strengthen your credit before applying

Take Control of Your Financial Future

Your credit score is more than just a number, it's a powerful financial tool that can unlock doors to better loan terms, lower interest rates, and greater financial freedom. Whether you're just starting your credit journey or looking to bounce back from past mistakes, the good news is this: you’re in control.

Improving and managing your credit score doesn’t happen overnight, but with consistent effort and the right guidance, you can absolutely achieve your goals.

At Stryve Finance, we’re more than mortgage brokers — we’re your financial partner. We:

• Help you understand and improve your credit score before you apply
• Work with flexible lenders, including those open to low-credit borrowers
• Provide pre-qualification assessments so you know where you stand
• Offer tailored advice based on your personal circumstances and goals

Whether your score is excellent or needs work, our job is to help you get loan-ready, negotiate better rates, and ultimately, secure the keys to your new home.