Get help building your credit score.
What is a credit builder credit card?
There are no dedicated credit cards on the Australia market to help you build your credit score. However, using cards that typically have lower credit limits and may come with higher interest rates, making them accessible to those with limited or poor credit history. By using the card responsibly, cardholders can demonstrate good financial behaviour and improve their credit score over time.
How to build credit score with a credit card
Using a credit card strategically can positively impact your credit score. Key steps include:
- Making on-time payments. Always pay at least the minimum amount by the due date.
- Keeping balances low. Try to use less than 30% of your credit limit to show responsible borrowing.
- Avoiding unnecessary applications. Too many credit applications in a short time can negatively impact your score.
- Holding onto accounts long-term. A longer credit history can contribute positively to your credit profile.
What is a good credit score?
In Australia, credit scores range from 0 to 1,200, depending on the credit reporting agency. A good credit score generally falls between 625 and 799, while 800 and above is considered excellent. A higher score can increase your chances of approval for credit products with better terms and lower interest rates.
| Credit band | Experian | Equifax |
|---|---|---|
| Excellent | 800-1,000 | 833-1,200 |
| Very good | 700-799 | 726-832 |
| Good | 625-699 | 622-725 |
| Fair / Average | 550-624 | 510-621 |
| Weak / Below average | 0-549 | 0-509 |
An expert explains how to correctly use a credit card to build credit
David Boyd, a credit card expert and co-founder of Credit Card Compare advises that responsible credit card use is key to building a strong credit history.
Using a credit card wisely is one of the most effective ways to build a strong credit history. Always aim to pay your bill on time, keep your balance well below your limit, and avoid taking on unnecessary debt. Even small, consistent positive habits can have a significant impact over time. Checking your credit report regularly as mistakes can easily be reported, and catching errors early can help you maintain a healthy credit profile.
Card behaviour can impact your score.
How your credit card affects your credit score
Positive impact
- On-time payments.
- Low credit utilisation.
- A long credit history.
Negative impact
- Missed payments
- Maxed-out credit limits
- Multiple credit applications.
Simple things to remember.
How to improve your credit score with a credit card
- Set up automatic payments to ensure you never miss a due date.
- Pay more than the minimum amount to reduce outstanding debt faster.
- Use your credit card regularly but responsibly to show consistent credit activity.
- Check your credit report for errors and dispute any inaccuracies.
- Avoid closing old credit accounts unless necessary, as a longer credit history can benefit your score.
