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.
There is also some further information in the following articles that you may find useful:
- 5 tips that could improve your credit score
- How to fix an error on your credit report
- What’s in a credit score?
To get a better understanding of how your credit score compares to the rest of Australia, head to our Credit Index.