What affects my credit score?
Understand the main things that move your score, and what you can actually control.
This guide helps you
- Understand what a credit score is and where it comes from
- Learn the main factors that influence it
- Identify habits that help and those that hurt
- Know what you can and cannot control
- Find free ways to check and improve your position
6 min
What's happening
A credit score is a number that summarises the information on your credit report into an estimate of how a lender might view your credit risk. Each bureau calculates its own score using its own model, so your number can differ between Equifax, Experian and illion. There is no single official score, and the exact ranges vary, so do not fixate on one figure.
Main factors
Scores generally reflect things like:
- Your repayment history, including whether payments were on time.
- Any defaults or other negative listings.
- How many credit applications you have made recently.
- The types and amount of credit you hold.
- How long you have held credit accounts.
Different models weigh these differently, so treat them as general influences rather than a fixed formula.
Step by step
- Pay bills and loan repayments on time, every time.
- Avoid making many credit applications in a short period.
- Keep credit use sensible relative to your limits.
- Fix any errors on your report, since wrong negative entries can drag your score down.
- Check your report and score for free and track progress over time.
Watch out for
Be sceptical of anyone quoting exact 'magic numbers' or promising a guaranteed score jump for a fee. No one can promise a specific score, and a paid 'credit repair' firm cannot lawfully remove accurate information that is affecting your score. Improvement comes from time and good habits, not a payment.
Where to get free help
If debt is dragging your score down, a free financial counsellor on the National Debt Helpline (1800 007 007) can help you build a plan. For definitions of terms like repayment history, see the glossary, or read more at Merion Help.
Key takeaways
- Each bureau calculates its own score, so numbers differ.
- On-time payments and fewer applications generally help.
- Errors and defaults can drag a score down.
- No one can guarantee a specific score for a fee.
Frequently asked questions
Is there one official credit score?
No. Each bureau uses its own model, so your score can differ between them. There is no single official number, and ranges vary.
Does checking my own score lower it?
Checking your own report and score does not harm it. It is applying for credit that creates enquiries lenders can see.
Can I pay to boost my score quickly?
No one can guarantee a score increase for a fee, and paid firms cannot remove accurate information. Good habits over time are what help.
This is general information, not legal or financial advice. Your situation is unique and rules can vary by state and over time — for advice on your circumstances, speak to a free financial counsellor (National Debt Helpline 1800 007 007) or get legal help.
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