Have you ever checked your credit score? Or just wondered what exactly it is? Credit scores can be pretty confusing, and they’re not something most people think about until they have to.

But here’s the thing! Knowing your credit score and what it does is important if you want to move forward with your financial journey. Let’s unpack the basics together.

What is a credit score, and why does it matter?

Your credit score becomes important when you want to borrow money – whether from a bank, for a credit card, or even a payment plan.

In Australia, your score can be determined by a credit bureau, such as Equifax. The score you get is based on your personal and financial information.

A lender will look at this score to decide how likely you are to repay the money you borrow.

Your credit score is an important factor when you apply for a home loan – and it can make or break a deal! The higher your score, the more likely you will have your loan approved!

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Is it a deal-breaker if I don’t know my score?

Knowing what your credit score is can actually be pretty handy. There are a few reasons behind this.

A good credit score could help you negotiate a better deal. And, well… if it’s not so good, you’ll understand why your application might have been rejected.

In Australia, credit scores are usually between zero and 1,200, and the higher the number, the better.

How is my credit score calculated?

Your credit score is calculated on a couple of factors, including:

  • Your payment history (i.e. do you pay your bills on time?);
  • How much money you’ve borrowed in the past; and
  • Any loans you’ve applied for.

Of course, making multiple applications for loans in a short period can also impact your score.

How can I start building it back up?

If your score isn’t as healthy as you’d like, don’t worry! Check the information in your report to make sure it’s accurate. From there, there are a few simple things you can do to make life easier.

  • Ensure you pay your bills on time
  • Make any repayments on time
  • Don’t make unnecessary credit applications

These simple tips can help your credit score stay healthy when you need it.

What else can I do to build my credit score?

RentPay’s digital wallet gives you more control, flexibility and choice in how you pay rent. One of the great features worth considering is Scorebuilder.

Each month you have the Scorebuilder feature, we report your account status to one of Australia’s largest credit reporting bodies.

If you maintain a good account status, reporting that data to the body over time can positively impact your credit score.

Find out more about how RentPay can help you find financial freedom today.


RentPay is giving Australia's 7 million renters more control, flexibility and choice in how they pay rent. Founded in 2021, RentPay was designed by Rent.com.au, Australia's largest pro-renter site. RentPay is the only payment app in Australia that helps renters take control of their rental payments while also helping improve their cash flow and build their financial future.