Equifax Australia Survey Finds Consumers Financially Ambitious

Australians remain financially ambitious in the face of evolving economic conditions

Australians are now taking strategic action to improve their finance and credit standing to combat an uncertain economy, reveals the Equifax Australian Credit Scorecard 2022

Australian consumers are determined to come out on top of the current economic turbulence, with 69% of Australians remaining ambitious when it comes to achieving their financial goals, such as saving for a holiday, buying a house or paying off debt.

The Equifax Australian Credit Scorecard 2022 has revealed that Australians are pragmatically tackling economic uncertainty, setting financial goals (89%), implementing budgeting techniques (51%), and spending less on discretionary items than they were 12 months ago (37%).

The Equifax Australian Credit Scorecard offers market-leading insights into the credit habits, behaviours and scores of Australian consumers. It combines Equifax analysis on the credit scores of the Australian banking population with consumer research of 1,016 Australians.

Compared to last year, half (48%) of Australians are now more likely to save each month, with Gen Z (64%) and Millennials (60%) saving more than older generations.

James Forbes, General Manager Consumer, Equifax, supports the actions that Gen Z and Millennials are taking to overcome economic curve balls and, as a result, improve their credit scores.

“Gen Z Australians aged 18-24 have a lower average credit score of 665 when compared to the national average of 846. This is likely due to Gen Z not being active in the credit system for as long as older generations.

“While the lower credit score isn’t cause for immediate concern, as they certainly have time to improve their score, it highlights the need for the younger generations to understand how healthy financial habits beyond saving, such as making repayments on time, can build a positive picture of creditworthiness. These behaviours will put them in a better position in the future, when their score will play a key role in helping them take out credit for big life milestones, like purchasing a car or a home.”

Despite Australians’ clear interest in improving their financial situation, there are still barriers to achieving financial freedom, with only half (50%) knowing how to access their credit report.

Another 70% of Australians were also found to not be fully aware of all the information included in a credit report. This knowledge gap could hinder consumers’ ability to demonstrate to lenders they are in control of their finances and secure access to credit, and highlights the need for continued financial literacy efforts from institutions like banks and credit providers.