Here at Credit Savvy, we believe every Australian should have free and instant access to their credit score. That’s why we’ve teamed up with Experian to give you access to your credit score and credit file information, every month, for free!

As one of Australia’s official credit reporting bodies, Experian has a sophisticated credit scoring model that calculates your score. Occasionally, they need to tweak and adjust these calculations to make sure your credit score is as accurate and relevant as possible.

Experian recently updated their algorithm and a number of Australians, including Credit Savvy members, may have experienced a change in their credit score.

What are some of the things that have changed?

Below are some of the key changes to the Experian algorithm:

  • How recent applications for credit can impact your score
  • How your score is affected by entries on your file from specific types of lenders
  • How your score is affected by entries on your file from specific types of credit products
  • Changes in the importance of the age of entries on your file

It’s important to remember that your credit score can move from time to time and this is normal.  Some other common reasons for movement include:

  • You have recently applied for a new credit product
  • You have a new negative credit event such as a default or bankruptcy
  • New information about you has become available to Experian – Experian are always working in the background to add more data from lenders
  • A record on your file has dropped off after a certain defined period of time
  • Errors on your file may have been corrected
  • Records on your file ageing over time

Don’t forget, Australia’s credit landscape is changing with the gradual introduction of comprehensive (positive) credit reporting which means there will be more of a focus on rewarding good credit behaviour, such as making all your repayments on time. Read about how these changes may affect you here.

Helpful Information

There is also some further information in the following articles that you may find useful:

To get a better understanding of how your credit score compares to the rest of Australia, head to our Credit Index.

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5 Comments

  1. Pingback: Why your score might have changed recently – Credit Industry News

  2. David Boardman Reply

    I’m 80 years old and getting a bit slower these days. I was going to purchase an item on E Bay but when the invoice came up it showed the item was $45 but because it was coming from Ireland there was $30 odd dollars freight. I could buy the item in Australia cheaper, so I didn’t press the “Pay” button on the invoice. I presume that this is why my rating has decreased. It’s a bit unfair, I thought that by not pressing the “Pay” button on the invoice, the sale would be cancelled. Thank you.

    • Hi David,

      Sorry to hear that your score has gone down, however the good news is that your credit score is not directly affected by any online purchases that you may make.

      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 articles that you may find useful:
      How are credit scores calculated?

      Kind regards

      The Credit Savvy Team

  3. Stephen Green Reply

    Strange how this credit report works. Ten of the 15 items listed on my credit report are wrong! I always pay my bills on time, and yet credit report number went down 17 points! Typical of computer generated rubbish with no human involvement!!

    • Hi Stephen,

      Thanks for getting in touch.

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

      Each CRB has their own algorithm that uses many different factors to determine a score and each will interpret the data differently.

      If there are incorrect listings on your Credit Report Card, you should first contact the organisation that provided the incorrect detail.

      If they do not resolve the issue, you can also contact Experian, or ultimately escalate the matter to the industry ombudsman.

      If there are details on your file that you know nothing about, it could be a simple mistake, or it could mean that your identity has been stolen.

      In this case, you should contact Experian and the credit provider (such as a lender, utility company or telecoms company), and you should do this as a priority.

      Kind Regards the Credit Savvy Team

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