How to improve your credit score in Australia in 2025

If you’re planning on applying for a home loan or a personal loan, prepare to have your credit reviewed. What does this mean, exactly? Your credit history tells your story as a borrower, covering even things that took place a long time ago. Lenders use this information to check if you're someone they can rely on and comfortably lend money to. Ultimately, they want to be sure you're in a good position to repay the loan!

So it can be worth double checking on your credit report from time to time, to make sure it's all in order ahead of any loan applications.

Don't worry though: it's not uncommon for Aussies to have a couple of blunders on their credit history. This can be improved upon. Below, we've compiled a few tips to help you boost your credit score and get you back in good financial standing.

The first thing you should do is get a copy of your credit report. In Australia, there are a number of credit reporting bodies you can contact to do this, but the main ones are Equifax, Experian and CheckYourCredit.

As a general rule, you can request a free copy of your report once every 12 months or more frequently in certain circumstances, such as if you’ve been refused credit in the past 90 days.

Once you’ve received your credit report, you’ll need to comb through it to ensure there aren’t any errors or listings to contest.

Things to look out for:

• Inaccurate or old information: Sometimes banks or lenders record inaccurate information or issues that have already been resolved. If this happens to you, you'll need to contact them to ask to have the listing removed. If there is indeed a mistake, then they'll get in touch with the credit reporting body so they can wipe it from your report as well.
• Identity fraud: Another thing to watch out for is identity fraud. This is why it's a good idea to check your report even if you aren't worried about your credit score. You don't want to be blindsided by news that someone has taken out a bunch of credit cards in your name.

Nothing will tarnish your credit score like unpaid debt, so if there's a bill you should have paid but haven't, put it at the top of your priority list. 

If the bill is $150 or more and at least 60 days pass since a debt collector contacts you, it will be listed as a credit default and stay on your report for five years.

Even if you pay it off, your report will still include mention of the default, though it will be amended to state that it's since been paid. 

Obviously, it's best not to let it get to that point! However, if you find yourself in this position, those debts are better paid late than never.

It should go without saying that you should aim to pay all future bills promptly, so think about setting up a direct debit if you haven't already.

Recent changes to credit reporting practices mean lenders have a more complete overview of your credit history, not just the bad stuff like infringements and defaults.

All your credit product applications, repayment amounts, and whether or not you make repayments on time feature on your report, which means there are more opportunities to win lenders’ favour if you’re responsible with your money. While you can’t undo past mistakes, lenders will notice if you’re on the right track.

Top tip: Moving apartments? Make sure your bank and utility companies know so they can update your details. The last thing you need is your bills going to the wrong address, as occupants of your old place are more likely to put them straight in the bin than to track you down.

There's a reason why you shouldn't apply for too many credit products. Each time you do, you rack up what's known as a 'hard enquiry.'

A hard enquiry is when a potential lender requests access to your credit history before doing business with you, and each request gets recorded on your report.

A single hard enquiry isn't anything to worry about. It's when too many are made in a short amount of time that you risk jeopardising your credit score.

This essentially sends a message to lenders that you're financially reckless or desperate for credit, neither of which paints a particularly favourable picture.

As a last resort, you might consider contacting a credit repair company. These can be costly, often around $1,000, to fix a single listing on your report, so you should only give them a call if you've exhausted all other options.

Remember, it's not uncommon for companies to charge for services that can be handled for free such as contacting an ombudsman. So, exercise some judgement before reaching for your wallet.

While credit repair companies can help remove incorrect information from your credit report, there's very little they can do about negative but factual information. So be wary of companies that claim to be able to scrub your credit history clean.

If this is what you’re dealing with, it’s probably best to start managing your debt instead.

Think about lowering your card limits, putting a stop to any new credit applications, and maybe contacting a financial counsellor for some guidance.

Your credit history is a record of how you’ve managed credit sources like loans and credit cards in the past. So what if your credit score is low because you’ve never borrowed money before?

Even if you’ve always been responsible with your finances, your word won’t mean much — a lender will want to see proof.

One way to start developing a credit history is to apply for a low-rate or no-annual-fee credit card - and then make your payments on time. If you need help figuring out which card is best for you, head to our credit card comparison page.

Once your credit score has improved, you'll be in a better position to apply for a loan, whether it’s for a home, holiday, renovations, or a new car. Check out our home loan and personal loan comparison pages for an idea of what’s currently available.