average state credit score in australia

Ever wondered how your credit score ranks against other Aussies?

29 Aug, 2018

How much attention do you pay to your credit score? Is it something that only pops into your mind when you need a loan, or do you keep a close eye on how it’s tracking so you know the state of your financial health?

Either way, we’re guessing it’s not something you discuss over dinner with your mates. Unlike in the States, where some people go as far as to proudly display their credit rating on their resumé, we Aussies tend to keep things a bit more private. Which is fine, except it does mean this topic carries an air of mystery for some people. What exactly does that number mean and how high should you be aiming for?


How is a credit score calculated and what does it mean?

Your credit score is a number that represents your financial state, taking into account your debt, previous loan repayments and defaults, current credit limit and recent credit enquiries. If you check your credit score through Monefly this number will be on a scale of 0 to 1,000. The higher your rating, the better your chances of being approved next time you apply for a mortgage or personal loan.

Find out more about what affects your credit score here.

If you have never checked your credit score before, it’s a good idea to do so. Knowledge is power, as the saying goes, and if you have no idea what your score is or what’s on your record then it’s hard to know how you can improve it. To receive a free, comprehensive credit report without impacting your rating, get started by creating an account with us here.

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How do you rank?

Once you have your score, aren’t you interested to know how you compare to other Aussies? We’ll let you decide whether to bring it up at the next BBQ you attend, but for now here are some statistics about the state of our nation’s credit scores.

These figures, released by Experian earlier in 2018, reveal that the average credit score in Australia is 652. Here is the breakdown between states:

  1. Western Australia – 665
  2. Victoria – 662
  3. South Australia – 652
  4. New South Wales – 651
  5. Tasmania – 639
  6. Queensland – 637
  7. Australian Capital Territory – 636
  8. Northern Territory – 635

So it’s the largest state that comes in top, while the Northern Territory is a full 30 points behind in last place. South Australia exactly matches the national average of 652. And it seems those smashed avocado haters can finally be silenced, seeing as Victoria has the second highest score in the nation.

It’s quite a jump up to the top five suburbs, which are all in the high 700s:

  1. Ocean Grove, VIC – 786
  2. Newcastle, NSW – 785
  3. Forster, NSW – 783
  4. Myaree, WA – 782
  5. Bronte, NSW – 780

There must be something about the ocean air which helps these people keep a clear head when it comes to finances! Interestingly, although NSW as a state only takes fourth place, three of its suburbs feature in the top five.

And what about when it comes to the battle of the sexes? Well, men come in just slightly higher than women with an average score of 656 compared to 647. There isn’t much in it though, so it’s quite possible we could see a reversal in the future.

These figures might give an indication of what’s normal, but it’s important to know exactly where you sit on this scale – especially if you’re planning to buy a house or apply for a personal loan soon. If your rating is a little on the low side, the team at Monefly can help you figure out ways to improve it. There may even be an admin error or fraudulent activity in your name which is dragging it down and preventing you from getting loan approval.

Create your free Monefly account now to check your credit score for free.