What credit score do I need for a personal loan?
There’s no single minimum credit score for a loan in Australia. Each lender sets its own criteria and reads your score alongside your income, expenses, existing debts and recent repayment history.
Scores run from zero up to 1,000 or 1,200, depending on the credit reporting body, and a higher score signals lower risk. Because each bureau uses its own scale, a number that looks middling on one can be quite healthy on another.
Besides your score, lenders weigh up:
- Income: how much, how regular and how you earn it
- Expenses and debts: including credit card limits and buy now pay later
- Repayment history: whether you’ve paid on time lately
- Stability: time in your job and at your address
- The loan itself: the amount, the term and whether it’s secured
Does an enquiry affect my credit score?
Checking your own credit report or score doesn’t affect it. A formal application is different: the lender’s enquiry is recorded on your credit report, and other lenders can see it.
One enquiry is perfectly normal. Several in a short space of time can make lenders wonder why you need so much credit, so it pays to apply thoughtfully rather than everywhere at once.
| What’s happening | Recorded as a credit enquiry? | Effect on your score |
|---|---|---|
| Checking your own report or score | No | None |
| Enquiring with Loan Finder Store | No, we don’t run a credit check when you enquire | None |
| An indicative quote from a lender | Depends on the lender; ask how their check is recorded | Ask before you go ahead |
| Submitting a formal loan application | Yes, this is a “hard” enquiry | It can have an effect, especially several close together |
What is comprehensive credit reporting?
Comprehensive credit reporting means your credit report shows the good as well as the bad. Alongside defaults and applications, it can include your repayment history: whether each monthly payment was made on time.
For most people, that’s great news. A run of on-time repayments helps show lenders you’re reliable, even if there’s an older blemish on your file.
According to Moneysmart, your credit report can include:
- Personal details, such as your name, date of birth, driver licence and addresses
- Credit products you’ve held recently, with limits and dates
- Repayment history, including missed payments
- Financial hardship arrangements
- Credit applications you’ve made
- Defaults on loans, credit cards and utility bills
- Bankruptcy and debt agreements
How do I get my free credit report?
You can get your credit report free from each credit reporting body every three months. Equifax and Experian are the main ones, and illion also operates as a credit reporting body, so check each, as they don’t always hold the same information.
- 1
Request your reports
Contact each credit reporting body online or by phone and confirm your identity.
- 2
Check your personal details
Make sure your name, date of birth, licence number and addresses are right.
- 3
Review every account and enquiry
Look for accounts you don’t recognise or applications you didn’t make, which can be a sign of fraud.
- 4
Dispute anything that’s wrong
Contact the credit reporting body or the lender that listed it. Correcting errors is free.
- 5
Keep an eye on it
Check again every few months, and especially before a big application.
You’re also entitled to a free copy if you’ve been refused credit in the last 90 days.
How long do defaults stay on my file?
A default can stay on your credit report for years, so it’s worth acting quickly if you’re falling behind. Moneysmart’s credit scores and credit reports page sets out the exact timeframes for defaults and other information.
Paying an overdue debt won’t erase a default, but the listing can be updated to show it’s been paid, and lenders notice that. If a default is wrong or out of date, you can ask for it to be corrected for free.
Struggling with repayments right now? The National Debt Helpline (1800 007 007) offers free, confidential financial counselling.
How can I improve my credit score for a loan?
Your score improves the same way trust does: with steady, reliable behaviour over time. There are no instant fixes, but these habits make a real difference.
- Pay on time, every time. Set up direct debits for at least the minimum on cards and loans.
- Trim unused credit limits. Lenders often count your limits, not just your balances, when assessing what you can afford.
- Space out applications. Apply for credit only when you genuinely need it.
- Treat buy now pay later as credit. It has been regulated as credit since 10 June 2025.
- Fix errors fast. Check each report and dispute anything that’s wrong.
- Simplify your debts. Rolling several debts into one can make on-time repayments easier.
If juggling several repayments is the problem, debt consolidation loans can bring them together. Getting ready to apply? Our guide to getting a loan approved faster covers the paperwork side.
What you’ll need
- Your free credit reports from Equifax and Experian
- Photo ID, such as a driver licence or passport
- Recent payslips, or tax returns if you’re self-employed
- Recent bank statements showing income and spending
- A list of your debts: cards, buy now pay later, car and personal loans
- A short explanation of any past defaults or hardship
- Proof of any errors you’ve had corrected
Who it usually suits
- Steady income that comfortably covers repayments
- Usually 18+ and an Australian citizen or permanent resident (some lenders consider visa holders)
- A clear, or clearly improving, recent repayment history
- Existing debts that are manageable for your income
- Less-than-perfect credit may still be considered, with no guarantees
