Did you know you can have more than one credit score? And did you know they can be different?
It might sound strange but here’s how:
1. Different CRBs, different algorithms and different interpretations
At Credit Savvy, we partner with Experian to provide you with your credit file and score – for free! Experian is one of three official national credit reporting bodies (CRBs) in Australia.
Each CRB has their own credit score algorithm which interprets the information held in a credit report and calculates your credit score from that data. With different calculations and a different emphasis being placed on each element, this is one reason that your scores can differ.
2. CRBs can access different data and in different TIME FRAMES
The information on your credit file might be different between each CRB.
This can be because not all credit providers submit data to every CRB and even when they do they might do so in different timeframes.
It is also possible for information to be correct with one CRB but incorrect with another following corrections or updates. So it is quite possible that each CRB will have data that is unique to them.
3. CRBs use different scales
The Experian credit score through Credit Savvy is a score of 0 – 1000 whereas other CRBs such as Equifax (previously Veda) provide a score of -200 – 1200.
This difference in scales could lead to scores appearing to be different but actually indicating a similar representation of credit worthiness.
To help people interpret what their score means, we also provide a descriptive score band from Below Average to Excellent.
So, what does it mean?
Basically, you can have different scores and different information with different CRBs and not because of anything you did or didn’t do. So as long as you have checked the information in each credit report is accurate, you shouldn’t worry if you have different scores.
Instead you can look at the elements on your file that you do have control over, such as making your repayments on time. This has never been more important with the adoption of Comprehensive Credit Reporting (CCR). Doing the right things will most likely help your credit score wherever it may be.
It’s also always worth remembering that scores simply act as an indication of your creditworthiness for you and for lenders and that a credit provider may use more than just your score to assess any credit application.