Australia has three credit reporting bodies, Equifax, Experian and illion, and they do not hold identical information. You have three credit reports and, depending who you ask, three different scores. A lender may check one, two, or all three.

Scores are scaled differently by each bureau, which is why comparing a number from one against a number from another tells you very little. What matters is the underlying report.

What comprehensive credit reporting records

Since the shift to comprehensive credit reporting, your file holds considerably more than defaults. It includes:

  • Repayment history for the past two years. Whether each credit payment was made on time, month by month. This is the single most influential item.
  • Accounts held, their limits and their open dates. Including accounts you no longer use.
  • Credit enquiries for five years. Every application, whether or not you proceeded.
  • Defaults for five years, and serious credit infringements for seven.

The two year repayment history window is genuinely good news. A rough patch stops weighing on you sooner than most people fear.

Three things people get wrong

Checking your own report does not hurt it. You are entitled to a free copy from each bureau, and checking is recorded differently from a lender's enquiry. Do it before you apply for anything, not after.

Multiple applications do hurt. Several credit enquiries in a short window reads as financial stress, regardless of the outcome of each one. This includes buy now pay later sign-ups and phone plans. Do not go shopping for pre-approval at six lenders in a fortnight.

Your credit card limit matters more than your balance. Lenders assess you as though your entire limit is drawn. A $15,000 limit you never touch still reduces your borrowing power.

Errors are common

Incorrect listings happen often enough to be worth checking for. You can dispute an error directly with the bureau at no cost, and if you get nowhere, the Australian Financial Complaints Authority handles credit reporting disputes free of charge. Never pay a credit repair company for something you can do yourself.

The two habits that move it fastest

First, never miss a payment on anything that reports. Set every minimum to direct debit and treat the date as immovable. Two years of clean repayment history does more than any other single action.

Second, reduce or close credit limits you do not need, and stop opening new accounts in the twelve months before you apply for a mortgage. Both changes are visible within a month or two.