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Your credit score is calculated using the information in your credit report, which is maintained by Australia’s two main credit reporting bodies – Equifax and Experian.
Each bureau uses its own scoring system, but assess similar information to undertake comprehensive credit reporting (CCR)
At a high level, your score is based on:
While neither Equifax nor Experian publish how the information collected is used to arrive at a credit score, repayment history and recent applications are widely considered to be major factors.
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Yes, most loans affect your credit score at different stages of the borrowing process.
It’s not the simple fact of obtaining a loan that impacts your score. What matters most is how you apply for and manage the loan.
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Yes, submitting a formal loan application usually results in a hard credit enquiry, which can temporarily lower your score.
When you apply for a personal loan, car loan, home loan, or line of credit, the lender checks your file with Equifax or Experian. That check is recorded on your report.
When you apply for a Cashies Loan, Cash Converters checks your file with.
One enquiry may have a small impact. Multiple enquiries in a short period are likely to signal to lenders that a customer is in financial stress.
Your credit report typically includes your personal details, such as your name, date of birth and address history, along with information about current and past loans or credit cards.
It also shows repayment history, including whether payments were made on time, as well as records of credit enquiries when you apply for credit. In some cases, it may include defaults or court judgments.
Together, this information helps paint a picture of how you’ve managed financial commitments over time.
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Yes, hard enquiries are recorded and visible to future lenders.
Enquiries remain on your credit file for five years. While their impact reduces over time, a cluster of recent enquiries may noticeably reduce your score.
If you’re comparing lenders, it’s best to research first and only apply for the loan when you’re confident you meet the eligibility criteria.
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It depends on how the lender conducts the check.
A soft enquiry doesn’t affect your credit score. hard enquiry does. Some pre-approvals involve a recorded enquiry, while others don’t. For more information on the different types of credit enquiries, please read here.
If you’re unsure of the type of credit enquiry that is required by a lender, contact them before proceeding to the loan application.
When you apply for a Cashies Loan, we will complete a hard enquiry, and this will appear on your credit report. This is a normal part of responsible lending and helps us ascertain whether the loan is affordable and suitable for your situation.
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The decline itself doesn’t appear as a “declined” label, but the application enquiry remains on your file.
If you apply for several loans and are declined multiple times, lenders will still see the pattern of recent enquiries. This can affect future approval decisions and may reduce your score in the short term.
Withdrawing an application after submission doesn’t remove the enquiry.
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Yes, both positively and negatively.
A personal loan can strengthen your credit profile if repayments are made on time, particularly when the lender reports repayment history as part of its CCR. Positive repayment history may then be shared with credit reporting bodies.
Late payments can reduce your credit score. Defaults, which generally occur when an amount of $150 or more is overdue by 60 days or longer, can remain on your credit file for five years.
How your payment history on a personal loan affects your credit score depends on your existing credit history and how responsibly the loan is managed.
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Yes, late repayment on a loan causes significant damage to your credit score.
Payments that are more than 14 days late can be recorded in your repayment history. Repeated late payments can significantly reduce your score and make future borrowing more difficult.
Consistent, on-time repayments of a loan is the best way to maintain or build a positive credit profile.
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Paying off a loan does not harm your credit score and can be positive over time.
Successfully completing a loan agreement demonstrates responsible borrowing. Reducing your overall debt may also improve how lenders assess your financial position.
Improvements are typically gradual rather than immediate.
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Yes, credit cards can significantly influence your credit score.
Your score is affected by your repayment history, your credit limit and how much of that limit you use. Regularly maxing out a card or missing repayments can reduce your score. Paying on time and keeping balances manageable can support it.
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BNPL services, including Afterpay, can affect your credit score depending on how they’re used and what information is reported.
Some BNPL providers conduct credit checks, and some may report missed payments or serious defaults to credit reporting bodies like Equifax and Experian. Even when positive repayment history is not reported, unpaid amounts that are sent to collections agents can negatively affect your credit file.
The safest approach is to treat Afterpay repayments like any other financial commitment – pay on time and avoid taking on more than you can comfortably repay.
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According to Beforepay, using their service does not affect your credit score because they do not report activity to credit reporting bodies such as Equifax or Experian.
However, lenders may still consider your overall financial commitments when assessing future loan applications. As with any financial product, it’s important to make repayments on time and avoid taking on more than you can comfortably afford.
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Yes, most short-term or cash loans affect your credit score if a hard enquiry is recorded and the account is reported.
Applying for a Cashies Loan or requesting a credit limit increase may result in a credit check, which is recorded as a hard enquiry on your credit report.
Frequent applications for small loans in a short timeframe can reduce your score more than a single, well-managed loan.
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Some lenders offer eligibility checks using soft enquiries. These don’t affect your credit score.
Once you submit a formal application, however, a hard enquiry is usually recorded. It’s important to understand the difference before applying.
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Yes, multiple loan applications within a short period can reduce your credit score and make lenders more cautious.
Spacing out applications and only applying when necessary, can help protect your credit profile.
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Loans and debt don’t automatically damage your credit score in Australia. What affects your score most is how you apply for credit and how you manage repayments.
Hard enquiries, repeated applications, and missed payments can reduce your score. Responsible borrowing and consistent on-time repayments can help strengthen it over time.
Learn more about how to improve your credit score in Australia and how build a strong credit profile.
