A credit score is a number that helps lenders understand how reliable someone is at repaying money. A higher score can make it easier to get approved for services or credit products and may give access to better terms.
Typical credit score ranges
Score systems differ between Australia and Europe but the general idea is similar. Higher numbers usually represent lower risk.
| Region | Typical score range |
|---|---|
| Australia | 0 to 1,000 or 0 to 1,200 depending on provider |
| Europe | 0 to 700 or country specific systems |
Three fast improvements
Pay bills on time to show reliable payment behaviour.
Reduce outstanding balances to lower your credit usage.
Avoid multiple credit applications in a short time.
Why scores drop
- Missed payments
- High credit usage
- Too many applications
- Incorrect information on reports
- Closing long-term accounts
- Rapid spending changes
Frequently asked questions
How long does it take to see improvement?
Many people see positive changes within a few months when they build consistent habits.
Do I need to take out new credit?
Not necessarily, improvement often comes from managing existing commitments well.
Can a score drop suddenly?
Yes, missed payments or multiple applications can cause a sudden change.
This article is general information only and does not constitute financial advice, investment advice, legal advice or tax advice. It does not consider your objectives, financial situation or needs.
This article is general information only and does not constitute financial, investment, legal, or tax advice. It does not consider your objectives, financial situation, or needs. You may wish to seek personalised advice from a licensed professional before making financial decisions.