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Sometimes your credit score can change and leave you wondering why. But similarly, you can feel you are doing all the right things to get it to move in the right direction but still not seeing the results you’re after.

So, why hasn’t my score changed?

Your credit score is calculated from the key information held on your credit file (which you can see on your Credit Savvy Credit Report Summary). Basically, scores can remain the same for extended periods of time if the key underlying credit file information remains consistent.

So, to see why your score hasn’t changed, let’s look at the most common reasons that a score can change:

  • A change in your repayment history (this could be a missed payment or paying off one that was missed)
  • A new application for a credit product
  • A newly-listed credit account (with Comprehensive Credit Reporting, your active account, open dates and credit limits are now being reported to the credit reporting bodies)
  • Closed credit accounts
  • A newly listed negative credit event (such as a default)
  • New information such as past enquiries or defaults 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 the set time limit
  • Errors being corrected
  • Records on your file ageing over time (an enquiry in the last month impacts your score more than one that’s 4 years old!)
  • Experian (our partner credit reporting body) recalibrating their scoring algorithm

So, if none of this has happened then your score is less likely to have changed.

But (and there is a but), Comprehensive Credit Reporting (CCR) is currently in the process of being adopted by credit providers. Without CCR data from your credit provider, your score won’t reflect your repayment history, open and closed accounts and credit limits. This means your good credit behaviour won’t be reflected in your score, yet.

As of March 2018, only NAB and HSBC are providing CCR data and then only for unsecured credit products (credit cards and unsecured personal loans) and with limited repayment history. Further providers are due to start providing CCR data over the course of 2018 and 2019. You can ask your credit provider for their current and future credit reporting policies and processes.

 

Credit Savvy’s credit score tips

Improving your score can take time and generally requires you to maintain a healthy credit history. Below are a few actions you can take that may improve your credit score:

  • Track your score and credit file information through Credit Savvy
  • Demonstrate financial responsibility by making all your repayments on time
  • Make an honest assessment of your finances and only borrow what you can afford to pay back
  • Limit the number of credit applications you make by researching the credit products available in the market and only select those that suit your requirements
  • Before applying, consider what type of credit you are applying for, who the credit provider is and the impact this could have on your credit score. For example, payday lenders may be viewed less favourably than banks.
  • Actively monitor and check your credit file for errors