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How often does your credit score change?
Key highlights
How often your credit score updates will depend on how often a bank, lender or service provider offers information to credit bureaus, and how often a credit bureau assesses your individual credit history and payment behaviour. Equifax, for example, calculates the Equifax Credit Score each time new information is added to your Equifax Credit Report, and refreshes it monthly.
Your credit report may include new lender enquiries (e.g. when a lender or service provider checks your credit report and repayment history information (e.g. if or when you have made a repayment on an existing loan). The information that is updated could then affect your credit score.
What can affect your credit score?
Your credit score is calculated based on your repayment behaviour and use of credit products. This doesn’t just refer to loans and credit cards, but can also include energy and phone bills.
The factors that can affect your credit score include:
- The length of your credit file;
- Opened and closed accounts, including bank accounts and credit cards;
- The type and amount (credit limits) of credit you have applied for in the past;
- Credit applications, including any rejections;
- Your repayment history – both positive and negative, and;
- Negative events, such as late payments or default judgements, court writs, or bankruptcies.
Previously, credit scores in Australia only reflected adverse or negative credit events, such as late payments and defaults. Thanks to the introduction of Comprehensive Credit Reporting (CCR), your credit file should include positive repayment behaviour as well, such as paying off a loan, or making your bill payments on time.
According to the Office of the Australian Information Commissioner (OAIC), this is how long you may expect various events to appear on your credit report:
Type of information | Length of time |
Bankruptcy | The later of:
|
Court judgement | 5 years |
Credit enquiry | 5 years |
Current consumer credit obligations | 2 years (from the end of the consumer credit) |
Debt agreement | The later of:
|
Default | 5 years |
Financial hardship information | 1 year |
Repayment history | 2 years |
Serious credit infringement | 7 years |
Different credit bureaus use different scales to measure credit scores, though generally the higher the number, the better your credit.
For example, Equifax ranks credit scores in the following bands:
- Excellent: 853 to 1200
- Very Good: 735 to 852
- Good: 661 to 734
- Average: 460 to 660
- Below Average: 0 to 459
Does your credit score get reset by Australian credit bureaus?
Technically, your credit score may not be reset, but you can work to improve it.
Credit bureaus don’t usually remove negative incidents from your credit file if they have been accurately recorded. However, these events do expire from your credit report over time.
Sometimes you may need to correct details in your credit report. If you’ve been a victim of fraud or identity theft, or if an error has occurred, incorrect information may be recorded in your credit file.
This may include:
- Your personal details, including identification and contact information.
- Credit transactions reported more than once.
- Incorrectly reported debt or repayment amounts.
- Fraudulent transactions that you can prove aren’t yours.
If any of the information on your credit report isn’t accurate, you must contact the credit bureau and the lender/provider immediately.
It’s also possible to take steps to improve your credit score over time, with just a little patience and effort on your part.
Some of the things you can do to help improve your credit score include:
- Paying bills, debts, and loans on time or early.
- Paying off or consolidating debts to bring down the outstanding amount.
- Waiting to apply for new loans or credit cards until you lower your current debts.
- Reducing the number of credit cards you hold.
