A credit score is a number from a credit reporting body such as Equifax, illion or Experian that summarises your credit history. Car lenders use it, along with your income, expenses, existing debts and any defaults, to decide whether to approve you and what rate to offer. A higher score usually means more lenders and lower rates, but a low score does not rule you out. Past defaults narrow your options, they do not end them.
By Tom Dihm, Director, Greenside Finance. Last updated: 5 October 2026.
Three bureaus hold credit files in Australia: Equifax, illion and Experian. Each has its own scoring scale, so the same person can have different numbers at each.
Each bureau sets its own bands and they can change, so treat these as a guide. A lender's own rules matter more than the label on your score.
Comprehensive credit reporting (also called positive reporting) means your file shows more than your mistakes. It records your accounts, limits and whether you paid each month on time, for about the past two years. That includes credit cards, personal loans, car loans and, with some bureaus, buy now pay later accounts.
This helps people who pay on time. It also means a run of late payments is easier for lenders to see.
Each time you apply for credit, an enquiry is recorded. Several in a short period can look like financial stress. Some lenders have rules about recent enquiries, so applying to lots of lenders yourself can hurt you. This is why we compare options before lodging a single application.
A default is a serious overdue debt that has been reported. It generally stays on your file for five years from when it is listed, even after you pay it. Paying it off is still worth doing, because lenders treat paid and unpaid defaults differently.
Under comprehensive reporting, the last 24 months of on-time or late payments appear on your file.
Court judgments and insolvency records can appear. They affect which lenders will consider you.
A score is a starting point, not the whole decision. For a car loan, lenders also look at:
Lenders group applicants into risk tiers. A better tier gets a lower rate and a wider choice. A lower score or a recent default moves you towards fewer lenders, often with higher rates and tighter limits on car age and loan term. Our panel of 40+ lenders includes options for people in that position, so it pays to ask rather than assume.
Do not assume you will be declined. Past defaults or a thin file narrow your options but do not rule you out. A broker can match your situation to lenders that accept it, explain the trade-offs and help you choose a loan you can afford. Start with our car loans page, or used car loans if you are buying second-hand.
It depends on the bureau. On Equifax's 0 to 1,200 scale, 661 and above is generally considered good. On the 0 to 1,000 scales, roughly 500 and above on illion and 625 and above on Experian.
Generally five years from when the default is listed, even if you repay it.
No. Checking your own report is not a lender enquiry and does not reduce your score.
Often yes, with fewer lender choices and usually a higher rate. The age of the default, whether it is paid and your current income all matter.
We compare options first and only apply when we have a good match, so you avoid the pile of enquiries that comes from applying alone.
Not sure where you stand? Tell us your situation and we will show you realistic options. Get a free quote.
