Why Your Credit Scores Vary Across Different Credit Reporting Agencies in Australia
If you’ve checked your credit score with all three Australian credit agencies, you might have noticed that your score varies between them. It’s not uncommon to feel confused, wondering why your score isn’t consistent across the board. Here’s a summary of why the scores may vary across the three credit reporting agencies in Australia: Equifax, Illion, and Experian.
It’s important to note that there are two main components to your credit reporting information: ‘Consumer data‘ and ‘Commercial data’. Experian only reports consumer data, whereas Equifax and Illion report both. Here are some of the reasons why your credit scores might differ:
1. Different Scoring Models:
Each credit reporting agency uses its own scoring models, which can result in different scores. These algorithms may weigh factors differently or consider alternative data sources, leading to variations in your credit score. For instance, Equifax, Illion, and Experian might have unique methods for evaluating your creditworthiness.
2. Data Reporting Discrepancies:
 Credit reporting agencies rely on information provided by lenders and creditors. However, not all creditors report to all agencies, and there might be discrepancies or delays in reporting. For example, a lender might report your repayment history to one agency but not to others, leading to differences in your credit score.
3.Timing of Updates:
Even if all creditors report to all agencies, the timing of these reports can impact your credit score. One agency might update its data more frequently than another, reflecting changes in your credit behaviour sooner and resulting in score variations. It may be that the bank or lender does not report the repayment history data at the same time as it reports to another credit reporting agency. Often you will notice on your report that your monthly repayment data may not appear until 60-90 days thereafter.
4. Inclusion of Different Information:
While credit reporting agencies generally use similar information to calculate credit scores, there might be slight differences in the data they include. For instance, one agency might consider ages demographics and address demographics for credit risk analisis, while another might not, leading to variations in your credit score. You may notice that when you check all three reports that adverse listings may be listed on one report and not another.  This is why it’s important to check all three reports as the bank or lender you apply for finance with will be checking all of your reports for adverse information. It’s also why at We Fix Credit when we remove an adverse or bad credit listing, we remove it from all three credit reports so that there is no trace left of the listing to be found.
5. Types of credit you apply for and Length of Credit History:
Your credit application history and open accounts (the types of accounts you have) and the length of your credit history can also impact your credit score. If one agency places more emphasis on certain types of accounts or considers the length of credit history differently, this can result in variations in your score. An example of this would be if you applied for too many personal loan or credit card application in a short space of time it will make a significant difference to the decline of your credit score. The types of lenders you have chosen to apply for such as second or third tier lenders will also make a huge negative impact to your score. We find that Equifax are the harshest with regards to this kind of borrowing behaviour and it reflects hugely against your score with their reporting.
6. Scoring Range Differences:
There may be slight variations in the scoring ranges used by different agencies or models. For example, Equifax Australia might use a scoring range of 0 to 1200, while another might use a range of 0 to 1000. These differences can affect your credit score calculation. Banks or lenders in Australia primarily check the Equifax and Illion scores when assessing loan applications.
Understanding why your credit score varies across agencies is crucial for managing your credit effectively. While minor variations are normal due to differences in scoring models, data reporting, and scoring ranges, significant discrepancies might indicate errors in your credit report that need addressing. Monitoring your credit regularly and staying informed about the factors influencing your credit score can help you maintain healthy credit and achieve your financial goals.
Under Australian credit reporting guidelines, you are entitled to a free credit report every three months. Additionally, with Equifax, you can subscribe and receive a monthly update on your score. Illion and Experian both allow you to access your updated score for free at any time.
At We Fix Credit, we’re dedicated to helping individuals understand and improve their credit health. If you have concerns about your credit score or need assistance with credit repair in Australia, our team of experts is here to help in finding credit fix solutions tailored to assist you fix your credit score and credit report. Contact us at 1300 003 655 to learn more about our services and how we can help you achieve your financial objectives. We offer a free no obligation consultation and credit report assessment.
Remember, fixing your credit starts with understanding it. For personalised credit repair options and support, trust We Fix Credit to guide you every step of the way.