Thinking about applying for a new home loan or refinancing an existing one? If you're in a de facto relationship or married, your credit scores won't be combined – even if your lives are. If you apply for a loan together, both your credit scores may come under the microscope. After all, you're a team, both legally and financially. 

But what if one (or both) of your credit reports aren't in great shape? If you're planning to apply for a loan as a couple and need to improve your credit profile, here's what you can do.

What's a good credit score?

A credit score is a number between zero and 1,000 or 1,200 (depending on the reporting agency) that effectively represents the information kept in your credit file – where much of your financial history is recorded. It's typically used by lenders to determine your 'creditworthiness'.

Lenders will typically consider your credit score and credit report when assessing the risk of you or your beloved failing to meet your repayment obligations.

As a general rule of thumb, a credit score above 600 is ideal. Having a good credit score could qualify you for a broader range of home loan products and potentially lower interest rates.

Australia has three main credit reporting bodies: Equifax, Experian, and illion. Here's a breakdown of the credit score tiers from each reporting bureau:

Equifax Experian illion
Below average <459 <549 <299
Average 460 - 660 550 - 624 300 - 499
Good 661 - 734 625 - 699 500 - 699
Very good 735 - 852 700 - 799 700 - 799
Excellent 853 - 1,200 800 - 1,000 800 - 1,000

How to improve your credit score as a couple

Do you or your partner have a low credit score? If so, lenders may see your combined application as a red flag, which could hinder your chances of getting approved for a loan.

To receive the green light from a lender, here's what you and your partner can do to improve one or both of your credit scores:

Check your credit report for errors

The first step is to check your credit report for errors. You don't want to be penalised for a mistake you didn't make.

You can request a free copy of your credit report from Equifax, Experian, or illion once every three months.

Once you have your report, review it carefully to ensure that all information is accurate. If you notice any errors, such as incorrect personal information, missed payments that you actually made, or accounts that you didn't open, contact the agency to have the error corrected.

Be honest about your financial past

If you're planning to apply for a home loan, now's the time to lay all your literal and metaphorical cards out on the table. If you think you can hide your credit history from a lender, you're wrong.

Lenders have access to your credit report, which will show any missed repayments, defaults, or credit enquiries. If it uncovers any relevant information that you deliberately didn't disclose, it could jeopardise your application. If you have a history of defaults, it's best to tell a lender straight up.

Further, if you have skeletons in your financial closet that your partner isn't aware of, and they turn out to be the reason you're denied a home loan, it could cause tension in the marriage or relationship – to say the least. By being honest from the start, you can come up with a shared plan of attack.

Create a budget and keep track of future repayments

You can't fix the past, but the faster you change your current financial situation, the better. Lenders can see the past 24 months of your repayment history, so if you know you've been late or missed a repayment, chances are your lender will too.

Noting bills' due dates on a calendar, scheduling them within an app, or even setting alarms on your phone can help keep your budget on track and ensure you have enough money to meet your financial commitments.

Remember, it's a lot easier if two people combine their efforts to improve their credit scores than if one works alone.

Carefully consider whether to open joint bank accounts

Many couples open joint accounts to help them stay financially on track. They can be convenient and useful for saving toward shared goals. If one of you tends to spend a little more freely, joint accounts can also provide visibility – making it easier to monitor transactions and adjust your budget together.

That said, if your partner is spend-happy or easily tempted, you may want to keep your savings separate – at least initially.

But be mindful: While joint accounts can work well for many couples, it's also important to maintain financial autonomy and trust. Keeping too tight a rein on shared money can become problematic – in some cases, it can cross into financial abuse, which is a recognised form of domestic violence.

If you or someone you know is experiencing financial abuse, you can contact 1800RESPECT by calling 1800 737 732.

Don't apply for too much credit at once

When you apply for a credit product, like a loan or credit card, the lender will enquire after your credit report. These enquiries themselves are then recorded on your credit report, which can impact your credit score. This is especially the case if you've made multiple loan applications in a short period, as it appears as if you're struggling to access credit. Thus, it's essential to be selective when applying for credit – only apply for credit that you need and don't make multiple applications.

Seek professional help if needed

If you're struggling to improve your credit score as a couple, it may be helpful to seek professional help. A credit counselor or financial advisor can provide guidance on how to manage your finances together and improve your credit score. They can also help you create a budget and develop a plan to pay off your debts.

You need to plan ahead to improve your credit report. Most show information from up to five years ago, so if you and your partner are planning to buy a house or car within the next few years, it's likely time to start improving your credit history. But remember, this takes time, and there are no shortcuts. It's essential to be patient and consistent in your efforts.

Article originally written by Hanan Dervisevic. Last updated by Brooke Cooper in 2025.

Image by Victoria Priessnitz on Unsplash

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