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. Here are some of the main reasons your credit score may 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.

With the changes to Comprehensive Credit Reporting (CCR) in July 2021, the mandatory information that the financial institutions must provide credit agencies with has increased. Financial institutions are now required to provide rich information like the types of credit you hold, open and close dates of those accounts and your repayment history. The Big 4 banks have been required to provide this type of information since the introduction of CCR in 2017.

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. You can find more information about this in our article: How long does information stay on my credit file?

Errors being corrected

Sometimes errors can appear on your credit report, and the best person to spot them is you.

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 impact 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.

Have a specific question about your Experian credit score?

You can contact the Experian Consumer Operations Team to discuss your credit score or credit file in detail.

Phone: 1300 783 684

Email: creditreport@au.experian.com