What do the different Equifax Credit Score ratings mean?

The different Equifax Credit Score rating helps you to understand your level of risk, based on your Equifax Credit Score, compared to the Australian credit-active population held by Equifax.

The Equifax Credit Score rating is based on historical analysis that determines how likely an adverse event, such as a default, court judgement, personal insolvency or similar, is to be recorded on a credit report in the next 12 months. This a key determining factor in whether you are likely to be able to repay future credit. 

  • Below average  - There is an above average possibility an adverse event will be recorded on a Credit Report the next 12 months
     

  • Average - There is an average possibility an adverse event will be recorded on a Credit Report in the next 12 months
     

  • Good - Scores in this category indicate that an adverse event is less likely than average to be recorded on a Credit Report in the next 12 months. The odds of no adverse events occurring on your Credit Report in the next 12 months are better than the average population odds
     

  • Very Good - It is unlikely an adverse event is to be recorded on a Credit Report in the next 12 months. In other words, the odds of no adverse events occurring on your Credit Report in the next 12 months are more than 2 times better than the average population odds
     

  • Excellent) - An adverse event is highly unlikely to be recorded on a Credit Report in the next 12 months. In other words, the odds of no adverse events occurring on your Credit Report in the next 12 months are more than 5 times better than the average population odds.

 

Equifax reviews the Australian credit-active population scores regularly and the Equifax Credit Score rating is calculated to take into account population and economic changes.

It is important to note that the way the Equifax Credit Score is used in practice by lenders may differ to the way it is displayed in the Equifax Credit and Identity portal. Each lender may also apply their own lending criteria and policies, and in some cases their own scores, which is why some lenders may approve your application while others will not.

You can get your free Equifax Credit Report here but to get access to your Credit Score, you may want to consider our subscription plans from Equifax.