Changes to your credit score may come as a bit of a shock, especially if it has decreased but credit scores move from time to time and this is normal. Let’s take a look at some common reasons why your score might change.

New information on your file

Your credit score is based on the information in your credit file. Whenever new information appears on your file, your credit score may change. For example, a new credit enquiry, default or bankruptcy can impact your score.

Old information dropping off your file

Similarly, your credit score can change when information drops off your file. The entries on your file can only remain there for a certain period of time. Once they have reached their limit, they will drop off your file and will no longer impact your score.

Errors being corrected

If you believe there are incorrect entries on your file, get in contact with the relevant credit provider and credit reporting body to have the information reviewed and corrected. Depending on the error, the information can be updated or removed.

To learn more about how to fix an error on your file, head over to our blog post: How to fix an error on your credit report.

Entries on your file ageing over time

Did you know that the age of the information on your file can have an impact on your score? For example, a credit enquiry that is one year old will have a different effect on your score than an enquiry that is four years old. As the information ages, you may see some movement in your score.

Score recalibration

Credit reporting bodies are constantly tweaking their credit score model so it’s not uncommon to see small movements in your score from time to time when they recalibrate their model.

For more information about how credit scores are calculated, check out our blog post: What’s in a credit score?

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8 Comments

  1. Hi, I’m curious as to how my credit score went from 780 to 624 points in the space of one wk due to some loan inquiries I made via city bank..
    I’m unsure as to how an inquiry could affect my credit score? As I have made no official repayments or even been approved for that matter.
    If I could get some feed back on this It would be greatly appreciated.
    Regards Tom

    • Hi Tom,

      Thanks for getting in touch.

      A credit provider may record an enquiry on your credit file when you apply for a credit product. It is recorded on your file regardless of whether your application was approved or rejected. It does not indicate if the product was ever taken out, is still active or whether it has been paid off or not.

      There is also some further information in the following article that you may find useful: What are credit enquiries?

      Kind regards,
      Mel from The Credit Savvy Team

    • Hi Tim,

      Thanks for getting in touch.

      There are many possibilities as to why your Experian score may differ from other credit reporting bodies (CRBs). Key reasons include that each CRB may:
      – Have their own algorithm and may interpret the data available in a different way; or
      – Have access to different data as each CRB will have data that is unique to them and not all credit providers submit data to every CRB; or
      – Use a different scale, for example, some use a score out of 1,000 while others use 1,200.

      As a result, you may have different credit scores or ranges at different CRBs and this is normal.

      Kind regards,
      Mel from The Credit Savvy Team

  2. Why as my credit score gone down from 259 to 159 now would like answer please as to why

    • Hi Wayne,

      Thanks for getting in touch.

      Movement of your score may come as a bit of a shock, especially if it has decreased but scores can move all the time and this is normal. Some common reasons for movement include:
      – A new application for a credit product
      – If you have a negative credit event (such as a late payment or default)
      – New information about you becoming available to Experian (they are always working in the background to add more data from lenders)
      – A record dropping off your file after certain defined period of time
      – Errors being corrected
      – Records on your file ageing over time
      – Experian recalibrating their scores from time to time

      There is also some further information in the following Credit Knowledge article: Why has my score changed?

      Kind regards,
      Mel from The Credit Savvy Team

  3. Hi my score was 780 3 weeks ago i got a credit card last week and now its 419 why such a big drop

    • Hi Josh,

      THanks for getting in touch.

      To protect your security and privacy, we are unable to access your individual credit file. However, below is some general information that may help.

      Credit Savvy provides credit file information and credit scores from Experian, one of Australia’s official credit reporting bodies (CRBs).

      Movement of your score may come as a bit of a shock, especially if it has decreased but scores can move all the time and this is normal. Some common reasons for movement include:
      – A new application for a credit product
      – If you have a negative credit event (such as a late payment or default)
      – New information about you becoming available to Experian (they are always working in the background to add more data from lenders)
      – A record dropping off your file after certain defined period of time
      – Errors being corrected
      – Records on your file ageing over time
      – Experian recalibrating their scores from time to time

      Kind regards,
      The Credit Savvy Team

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