Why did my credit score change?
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, check out our article: What if the information held on me is wrong?
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.
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.