How your credit score affects your home loan

What is on a credit report

Moneysmart lists these items:

• Personal details: name, date of birth, current and previous addresses.
• Credit products: for the last two years, the type, provider, limit and account dates.
• Repayment history: for the same two years, repayment amounts, due dates and missed payments. Moneysmart defines a missed payment as one not made within 14 days of the due date.
• Defaults: unpaid debts that a provider reports to a credit reporting agency. The provider must notify you before it does.
• Credit applications: the number of applications you have made, the total credit borrowed and any loans you have guaranteed.
• Other entries: bankruptcies, debt agreements, court judgments and requests for your report from credit providers.

A lender looking at a home loan application will usually also assess income, expenses, deposit and the property. See how lenders assess serviceability. The credit report is one input among several.

The credit reporting bodies

Moneysmart names two agencies: Experian and Equifax. It notes that they can hold different information, so you may need to check both. Older material you find online may refer to three bodies, but the Moneysmart page checked on 2 November 2026 names two.

Your free report and score

Moneysmart says you have a right to a free copy of your credit report every 3 months. Some agencies provide your score for free, and free online providers can give one in minutes. It warns to avoid any provider that asks you to pay or hands over your credit card details, and that signing up may mean agreeing to marketing use of your information.

Scores and ranges

Moneysmart says scores run from zero to either 1,000 or 1,200 depending on the agency, and describes the rating as a band such as low, fair, good, very good or excellent. The page does not list cut-off points for each band, and RateSonar has not found an official table, so this guide gives none. Treat any score band from a website as that provider's own scale. No lender publishes a single score cut-off that guarantees approval, so ask your lender what it considers.

What to check before you apply

1. Repayment history. Look for missed payments you do not recognise, or ones reported wrongly.
2. Defaults. Moneysmart says a default stays for five years in the case it describes. Check each one is yours and the amount is right.
3. Enquiries and applications. The number of credit applications you have made is one factor in a score, according to Moneysmart. It does not say how much each application counts. Lenders see each application, so avoid applying for several cards or loans around the time you apply for a mortgage. Comparing rates on RateSonar's home loan board does not involve a credit application.
4. Your details. Wrong names or addresses can cause mismatches.
5. Debts that are not yours. These can be identity theft. Moneysmart says you can ask for a temporary ban on your report to prevent unauthorised applications.

Ask a lender or broker before you submit whether a pre-approval enquiry affects your report. See mortgage pre-approval and questions to ask a mortgage broker.

Fixing errors

Moneysmart says you have a right to get errors fixed for free and can arrange this yourself. You can go to the credit reporting agency or the lender, and both are required to help you complete your request. Common errors include wrong personal details, duplicate debts, incorrect amounts, overdue payments reported wrongly, defaults listed during a dispute and accounts from identity theft. If you cannot reach agreement, you can complain to the Australian Financial Complaints Authority for free, and Moneysmart links to the Office of the Australian Information Commissioner for credit reporting complaints.

You do not need to pay a credit repair company. Moneysmart notes that the only thing a credit reporting agency can be asked to remove is wrong information, so be cautious of anyone charging to remove accurate negative listings. If you do use a company, Moneysmart says to check it is licensed on ASIC's Professional Registers. Compare the process if you plan to switch: see how to refinance a home loan.

If you are in financial hardship

Moneysmart says a financial hardship arrangement does not affect your credit score, and it is shown only for the months it applies and deleted after 12 months. See struggling with mortgage repayments.