What Credit Score Do You Need for a Car Loan in 2026?
May 27, 2026
Chattel Mortgage Explained and How It Works for Your Business
July 22, 2026
Most people first think about their credit score at the worst possible moment, which is somewhere between filling out a loan application and waiting for the answer. By then the report has already been written, and the things that shaped it happened months or years earlier. The useful work happens before that point. Your credit report is free to access, it is more informative than the score attached to it, and a surprising amount of what it contains is either fixable or misunderstood.
TLDR
- You have a right to a free copy of your credit report every three months, according to ASIC’s Moneysmart.
- There are now two main credit reporting bodies in Australia, Experian and Equifax. There used to be three.
- Depending on the body, your score sits between zero and either 1,000 or 1,200.
- A missed payment is one not made within 14 days of the due date, and repayment history covers the last two years.
- A default requires a debt of $150 or more, at least 60 days overdue, with notice given. It stays on your report for five years.
- A financial hardship arrangement does not affect your credit score, and the listing is deleted after 12 months.
- Credit repair firms can only remove information that is wrong, and you can do that yourself for free.
What your credit score is
Your credit score is a number calculated from the information held in your credit report. Moneysmart describes it as reflecting things like the amount of money you have borrowed, the number of credit applications you have made, and whether you pay on time.
Depending on which credit reporting body produced it, the score sits between zero and either 1,000 or 1,200. Your report also includes a credit rating, which is simply the band your score falls into: low, fair, good, very good or excellent.
A higher score means a lender considers you less risky, which may translate into a better deal. It is worth understanding how credit scores work before treating the number as a verdict on your character. It is a summary of a file, and the file is the thing lenders actually assess.
Where to check it free
You have a right to a free copy of your credit report every three months. Moneysmart suggests getting a copy at least once a year, which is sensible even when you have no intention of borrowing.
There are two main credit reporting bodies in Australia: Experian and Equifax. This is a genuine change worth noting, because a great deal of published content still refers to three. The two bodies can hold different information, so you may have a report with both, and checking only one gives you a partial picture.
Some reporting bodies provide your score free as well. There are also online credit score providers, listed through the CreditSmart website. Moneysmart’s guidance here is blunt and worth repeating: avoid any provider that asks you to pay or to hand over your credit card details.
What sits in your credit report
The report is a record of your credit history rather than a judgement about it. Knowing what it contains makes it far easier to read.
Section | What it holds | How far back |
Personal information | Name, date of birth, driver’s licence number, employer, current and previous addresses | Current details |
Credit rating | The band your score sits in, and sometimes the score itself | Current |
Credit products | Product type, provider, credit limit, opening and closing dates, any joint applicant | Last two years |
Repayment history | Repayment amounts, due dates, whether you paid on time, missed payments and when they were made up | Last two years |
Financial hardship information | The months a hardship arrangement was in place. No other details | Deleted after 12 months |
Defaults | Unpaid debts meeting the default criteria, including some utility and phone bills | Five years, or seven for a clearout |
Credit applications | Number of applications, total credit borrowed, loans you have guaranteed | Recorded history |
Bankruptcy and debt agreements | Bankruptcies, debt agreements, court judgments, personal insolvency agreements | Recorded history |
Requests for your report by credit providers are also recorded. This is why making many applications in a short period is unhelpful. Each one leaves a mark, and the pattern is visible to the next lender who looks.
How missed payments are recorded
This is the detail most people get wrong. A missed payment, for credit reporting purposes, is one not made within 14 days of the due date. Paying two days late does not create a listing. Paying three weeks late does.
Repayment history covers the last two years, and it records not only that a payment was missed but whether and when it was subsequently made. A pattern of paying on time is being built continuously, which cuts both ways. A rough period recedes, and a good stretch accumulates.
For anyone whose repayments are becoming difficult, Moneysmart’s advice is to talk to the lender straight away rather than wait. That is not a slogan. It is the only step that opens the options described below.
Defaults and how long they last
A default is a more serious listing, and it has conditions attached. A provider can report one only if the amount owed is $150 or more, at least 60 days have passed since the due date, they have asked you to pay by phone or in writing, and they have notified you before listing it.
Defaults can include utility and phone bills, not only loans and credit cards. They stay on the report for five years, or seven years in the case of a clearout, which is where the provider could not contact you despite reasonable efforts.
Paying the debt does not remove the listing. The default remains, but the report will also show that it has been paid. That distinction matters to a lender assessing the file, and it is a reason to pay a default even after the damage feels done.
Hardship arrangements and your score
Here is a fact that deserves more circulation than it gets. A financial hardship arrangement does not affect your credit score.
If illness, job loss, a natural disaster or a relationship breakdown affects your ability to make repayments, you can ask your lender for a hardship arrangement. This might be a temporary deferral or a permanent variation to the loan. Your report will show only the months the arrangement was in place, with no other details, and provided you stick to the agreed arrangement you are shown as up to date.
The listing is deleted after 12 months. Arrangements with a buy now pay later, phone, internet or utility provider do not appear on your credit report at all. Fear of the credit consequences is a poor reason to avoid asking for help that exists precisely for these circumstances.
Checking your report for errors
When your report arrives, read it as a proofreader rather than a defendant. Check that every loan and debt listed is actually yours, and that details such as your name and date of birth are correct.
If something is wrong or out of date, contact the credit reporting body and ask them to fix it. This is a free service. Errors are more common than people expect, and a single incorrectly attributed default can shift a file from one lending band to another.
If your report lists loans or debts you know nothing about, that may indicate identity theft. The Office of the Australian Information Commissioner explains how to request a temporary ban on your credit report, which prevents unauthorised applications being made in your name.
Practical steps that can help
There is no lever that lifts a score quickly, and anyone suggesting otherwise is selling something. What follows are the actions that address what the report actually records.
- Get your free report from both Experian and Equifax, since they may hold different information
- Check every listing and have any errors corrected, at no cost, through the reporting body
- Pay on time, remembering that the 14 day window is what determines a listing
- Pay outstanding defaults, which will then show as paid even though the listing remains
- Avoid making multiple credit applications in a short period, as each is recorded
- Ask your lender about a hardship arrangement if repayments are becoming difficult, since it will not affect your score
- Give yourself time. Repayment history builds over two years and defaults age out over five
Preparation also means understanding what a lender will ask for. Reading through car and asset finance options before you apply, rather than during the application, tends to produce a clearer sense of what you are actually seeking and what documentation supports it.
What nobody can promise you
Some companies offer, for a fee, to remove negative information from your credit report. Moneysmart is direct about this. The only thing they can ask a credit reporting body to remove is information that is wrong, and you can do that yourself for free.
Accurate listings stay for their prescribed period. No broker, lender or credit repair service can shorten that, and any suggestion to the contrary should be treated as a reason to walk away. Nor can anyone guarantee that a particular score will result in approval, or in a particular interest rate. Lenders assess the whole application, of which the score is one part.
What is achievable is arriving prepared, with a report you have read, errors corrected, and a realistic sense of your position. Navigating a loan application is considerably easier when nothing in the file is a surprise to you.
Ready to talk it through?
Your credit report is free, it is available every three months, and it is the document that shapes how a lender sees you. Reading it before you apply costs nothing and removes the single largest source of unpleasant surprises in a loan application.
If you are unsure how your file might be read, or which lenders suit your circumstances, a conversation with a finance broker in Brisbane can help you understand the landscape before you make an application. Eligibility, rates and terms vary between lenders and depend on your individual circumstances.
Sources: ASIC Moneysmart, Credit scores and credit reports; ASIC Moneysmart, Credit repair; ASIC Moneysmart, Financial hardship; Office of the Australian Information Commissioner, Credit reporting and fraud; CreditSmart, Know your credit score.
This article is intended for general information purposes only. It does not take into account your objectives, financial situation or needs, and it does not constitute financial, credit or legal advice. Eligibility, interest rates, fees and terms vary between lenders and depend on your individual circumstances, and no outcome is guaranteed. Thor Finance is a Credit Representative (ACR 557246) of AFAS Group Pty Ltd (Australian Credit Licence 414426). Consider seeking independent advice before making a financial decision, and refer to moneysmart.gov.au for free, impartial guidance.
