Worked Examples and Checklists
Credit scores and comprehensive credit reporting in Australia: Equifax, Experian and illion
How comprehensive credit reporting works in Australia, what is on your credit report and for how long, free reports every three months, scores from Equifax and Experian, and fixing errors.
Australian lenders check your credit report with one or more credit reporting bodies — principally Equifax and Experian; illion's consumer credit bureau was acquired by Experian in 2024. Under comprehensive credit reporting, your report shows not only negative events such as defaults but also your open accounts, credit limits and up to two years of monthly repayment history. Each body turns this into a credit score on its own scale. You are entitled to a free copy of your credit report every three months from each body, and again if you have been refused credit in the last 90 days. Check your reports before applying for a personal loan and correct errors through the body or the lender.
This guide is part of the personal loan requirements guide. It is general information; the rules are in Part IIIA of the Privacy Act 1988 and the Privacy (Credit Reporting) Code.
What comprehensive credit reporting means
Before comprehensive credit reporting, Australian credit reports were mostly "negative": they showed enquiries, defaults and court judgments. Since the 2014 Privacy Act reforms, lenders can also report "positive" information. Legislation then made comprehensive reporting mandatory for the major banks, and most large lenders now take part.
| Information | What it shows | How long it generally stays |
|---|---|---|
| Consumer credit accounts | Type of credit, lender, limit, open and close dates | While open, and for 2 years after closing |
| Repayment history | Whether each monthly repayment was on time or how many days late (shown in bands) | 2 years |
| Financial hardship information | That a repayment was made under a hardship arrangement | 1 year |
| Credit enquiries | Each application for credit, the type and amount | 5 years |
| Defaults | Overdue debts of at least $150, 60+ days overdue, after required notices | 5 years |
| Serious credit infringements | Where a lender believes you deliberately avoided the debt | Longer, up to 7 years |
| Court judgments and personal insolvency | Court judgments, bankruptcy, debt agreements, personal insolvency agreements | Court judgments 5 years; insolvency periods vary by type |
A repayment is generally recorded as late if it is made more than 14 days after the due date. Financial hardship information was introduced from 1 July 2022 so that a temporary hardship arrangement is not shown in the same way as a missed payment.
How credit scores work
There is no single national credit score. Each credit reporting body calculates its own, on its own range, and lenders may also use their own internal scoring. In general, scores are higher when you:
- pay every account on time,
- have few recent credit enquiries,
- have no defaults or insolvency events,
- have a reasonable length of credit history, and
- do not have large unused limits relative to your income (lenders weigh this separately too).
Because the scales differ, a "good" score at one body is not directly comparable with another. Look at the band descriptions each body provides rather than the number alone.
Worked example: how one late payment shows up (illustrative)
Suppose your personal loan repayment is due on the 1st and you pay on the 20th.
- It is 19 days late, more than the 14-day threshold, so it can be reported as a late payment in the lowest band of lateness.
- It stays in your repayment history for two years.
- If you had arranged a hardship variation before missing it, the month may instead be marked with financial hardship information, which stays for one year and is reported differently.
The lesson: call the lender before a payment is missed. See hardship notices.
Getting your free credit report
- Request your report from Equifax and Experian — they may hold different information.
- Use the free report option. Some sites encourage paid subscriptions; you do not need one.
- Check personal details, accounts, enquiries, repayment history and any defaults.
- Keep the reports so you can compare them before a later application.
Free credit score services offered by comparison sites and banks use data from the credit reporting bodies; they can be useful, but check what consents and marketing you agree to.
Fixing errors
If something is wrong — an account that is not yours, a default for a debt you paid on time, or an enquiry you did not make:
- Ask the credit reporting body or the lender to correct it. They must deal with your correction request, generally within 30 days unless you agree to more time.
- Provide evidence such as receipts, statements or emails.
- If the request is refused or not resolved, complain to AFCA (for lenders that are members) or to the Office of the Australian Information Commissioner (OAIC).
Be cautious of "credit repair" businesses that charge large fees to remove listings. You can request corrections yourself for free, and accurate information cannot be removed just because it is negative.
How credit enquiries affect a personal loan
Every full application usually records an enquiry. Several in a short time can suggest financial pressure. To limit the impact:
- use quote tools that rely on a soft check where available,
- shortlist offers using the comparison rate guide and the three-quote example, and
- apply to one lender at a time.
Frequently asked questions
Does checking my own credit report lower my score?
No. Requesting your own report is not a credit enquiry by a lender and does not affect your score.
Does paying off a default remove it?
No. A paid default stays for the full period, but its status is updated to show it was paid, which lenders may view more favourably.
Is illion still a separate credit bureau?
Experian acquired illion in 2024. Check the OAIC website for the current list of credit reporting bodies, and if you have an older illion report, compare it with your Equifax and Experian reports.
Can I freeze my credit file?
Yes. If you believe you are or may be a victim of fraud, you can ask a credit reporting body to apply a ban period, during which it generally cannot disclose your credit information without your consent.
Sources and where to check
- Office of the Australian Information Commissioner — credit reporting rights, free reports and correction
- Equifax Australia — free credit report
- Experian Australia — free credit report
- ASIC Moneysmart — credit scores and reports
- IDCARE — identity theft support
