Quick answer
A credit score is a number a credit reporting body calculates from your credit file to estimate how likely you are to repay credit. In Australia, Equifax scores run from 0 to 1,200, and other bureaus use their own scales, so the same person can hold different numbers. Business lenders use the owners' scores, and sometimes a separate business score, as one input alongside cash flow and security.
Key points
- Equifax's scale runs 0 to 1,200, with 'good' starting at 661 and 'excellent' at 853
- Applications and repayment history together drive about 78% of an Equifax score
- Scores from different bureaus aren't comparable, because each uses its own model and data
- For business loans, a score usually sets which lenders are open to you, not the final decision
Your credit score is a summary. A credit bureau takes everything on your credit file, runs it through a statistical model and produces one number meant to predict whether you’ll repay what you borrow. Higher is better. The file is the evidence; the score is the bureau’s verdict on it.
What do the numbers mean?
There’s no single national scale. Equifax, the largest bureau, scores from 0 to 1,200 and publishes these bands:
| Equifax band | Score |
|---|---|
| Below average | 0–459 |
| Average | 460–660 |
| Good | 661–734 |
| Very good | 735–852 |
| Excellent | 853–1,200 |
Experian, which took over illion’s credit bureau in 2024, uses its own model and bands. A 700 from one bureau and a 700 from another are not the same result, and the free apps that show your score each draw on a particular bureau. When comparing over time, stick with one source.
What moves a credit score most?
Equifax publishes an approximate weighting for its personal score, and two factors dominate. Applications for credit sit at around 40%, and repayment history at around 38%. Everything else, including defaults and other adverse events, personal details, account information and length of history, shares the remaining fifth or so. Commercial credit information counts for about 3%.
For a business owner, that weighting carries three practical messages:
- Apply carefully. A burst of loan applications can move your score more than you’d expect. Our credit enquiry entry explains how each one is recorded.
- Pay every account on time. Since comprehensive credit reporting, lenders report whether each monthly repayment was made, so on-time payments now lift a score rather than simply avoiding damage.
- Check for errors. A default you didn’t know about, or one that belongs to someone else, can drag a score down for years. Each bureau must hand over your file free once a quarter.
How do business lenders use your score?
Mostly as a filter. A bank may decline automatically below a set score, and when your score clears that bar with room to spare, the bank is often your cheapest option, so take its offer seriously. Many non-bank lenders accept lower scores and lean harder on bank statements and trading history. Private lenders secured by property may barely weigh the score if the equity and exit are solid.
Lenders also look past the number to the file behind it. A 580 caused by six recent enquiries reads very differently from a 580 caused by an unpaid judgment. A company may also have its own business credit score, built from supplier defaults, court actions and business enquiries.
Example: same score, different stories
Two Adelaide café owners each apply for $60k to replace espresso machines and refurbish seating. Both have personal scores of about 590.
Lucy’s score dropped because she shopped for a car loan, a home loan pre-approval and two business loans in the same quarter. Her file is otherwise clean with two years of on-time repayments. A non-bank lender approves her after a short explanation of the enquiries.
Marco’s score reflects a $4,200 supplier default from eighteen months ago, still unpaid. Most lenders want that cleared first. Once he pays it and the listing shows as paid, he’s approved by a lender that accepts paid defaults, with a larger deposit.
Same number, different paths. If your score sits below where you’d like it, our low credit score business loans page sets out the lenders and structures that still fit, or you can check your options without affecting your score.
Curious which lenders would work with your score?
A score is only one part of the picture, and part of our job is knowing which lenders weigh it heavily and which care more about how the business trades. Our form needs about a minute of your time, and filling it in doesn’t register on your credit report. Your details aren’t scattered across lenders, either. A person on our side works through what you’ve written, then phones to discuss it. If you know your score or any marks on your file, include them; accurate answers help us skip the lenders who’d decline and start with ones that fit.
Frequently asked questions
What is a good credit score in Australia?
On Equifax's 0 to 1,200 scale, 661 to 734 is rated good, 735 to 852 very good and 853 or above excellent. Other bureaus use different scales and bands, so check which score you're looking at before comparing.
Why is my credit score different on different websites?
Free score services draw on different bureaus, and each bureau holds slightly different data and runs its own scoring model. A gap of a hundred points or more between two services is common and doesn't mean either is wrong.
What credit score do I need for a business loan?
There's no single cut-off. Banks tend to want owners in the good range or above with a clean file. Many non-bank lenders accept lower scores where bank statements show steady trading, and property-secured private lenders may focus mainly on the equity and the exit plan.
Does a business have its own credit score?
Yes. Commercial bureaus produce scores for companies and ABNs based on business credit enquiries, payment defaults, court actions and company details. Lenders often check this alongside the directors' personal scores.
How quickly can I improve my credit score?
Some changes show within a month or two, such as a run of on-time repayments being reported or older enquiries ageing. Negative listings like defaults take longer to fade. The fastest wins are usually stopping new applications and correcting any errors on your file.