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Building a good credit score is crucial when creating a financial portfolio. It will give lenders an idea of how efficiently you meet your payments.

The average credit score in Australia is 550, and anything below that can be considered a bad credit score, especially if it is under 400. 

Here is your guide to the ideal credit score and what you can do to improve upon it.

Why Is Credit Score Important?

Before you can apply for that loan, mortgage, or credit card, lenders will take a look at what your credit score is. This is because they want to know that you can be trusted to repay the debt you incurred. If a borrower misses a payment, then that can lower their credit score.

An ideal credit score will give a borrower the edge when applying for a loan or credit card. A bad credit score can easily be improved, but you have to work on it. If you have a bad credit score, it may hinder your ability to qualify for any loans you apply for. That is why it is important to work on it.

What is the Perfect Credit Score?

The average credit score in Australia is 550, but depending on the individual lender, they may have their own credit score requirements. Lenders may have a different credit score range for different purposes. 

Will a Bad Credit Home Loan Help?

If your credit score is not ideal, then you may have a hard time getting a home loan. The great news is that if you have a bad credit score, you can still get a home loan.

Overcoming a bad credit score is hard enough, but with a bad credit home loan, you can still get your home loan. You have to have a good income and an excellent repayment history. If you have bad credit and are not sure what to do, you can always ask a mortgage broker. They can be a great help.

A bad credit home loan can be a great way to improve your credit score.

How to Improve Your Credit Score

Here are some helpful tips to improve your credit score:

1. Pay Bills on Time

If you have a job, then you most likely have a lot of bills to pay. If you miss a payment, your creditor can send you a “default notice.” This can lower your credit score. 

If you have missed a payment, then it is important to contact the lender immediately. Then work on making the payment, or resolve your issues with them.

2. Keep Your Debt Low

It is better to have low debt than to have high debt. If you have high debt, then you will have less money to pay for your bills. If you have low debt, then that means you can have more money to pay for other expenses.

3. Be Cautious About Applying for a Loan

If you have never applied for a loan before, then start small with a small loan. This way, you can get your feet wet with a successful loan. 

If you want to build your credit score, then you are going to want to apply for a loan.


If your credit score is poor, you may want to consider getting a bad credit home loan. This way, you can start to improve your credit score. It may take some time, but you can get there. 

It's still entirely possible to apply for a loan with bad credit, and Wealthy You can help. We understand that not everyone has a good credit score, and are offering great opportunities for a home loan. Get in touch with us today to learn more.