[Advice Needed] Credit Score down 60 Points in a Month and 170 Points in 3 Months!

blitzzbargain on 08/05/2019 - 22:17
Last edited 08/05/2019 - 23:16

Hi All,

I was shocked when I checked my credit score from getcreditscore.com.au dropped 60 points in a month (even though it is still in a very good category) but it does not make sense to me. Then, I requested a credit report from Equifax and nothing unusual, in fact nothing happened. So I am puzzled what is happening!!

My credit score has dropped around 170 from 3 months ago. The only queries done were Telstra (April), and from a utility company (January) that's all. Not even a single late payment, credit card enquiries etc (a.k.a no negative activities)
The funny thing is that other credit agencies (i.e. credit savvy and credit simple) are no change at all in the excellent category.

Have you guys experience the kind of situation before? What do I need to do to stop these negative trends (e.g. losing 50 points every month)? If this dropping rate were to continue, I would be in a poor/bad category in the next few months!!

Please advise and share your experience.

Thank you in advance

Financial

Comments

  • [Deactivated] on 08/05/2019 - 23:45

    Maybe because you are doing so many checks?

    • blitzzbargain on 08/05/2019 - 23:59

      Do you mean getcreditscore check? I dont think it affected the score as the company encourage to check the score frequently.
      As mentioned, the credit file seems clean as well.

      • [Deactivated] on 09/05/2019 - 00:48

        yeah, I'm no expert in this matters. However, when I did check my score several times over a 3 month period, I saw my score going down … maybe it affects? don't know.

        • sw0rdy on 09/05/2019 - 08:51

          Checking your credit score DOES NOT affect your credit score.

          Your Telstra query in April would've dropped your credit score - it was probably that?

          • blitzzbargain on 09/05/2019 - 09:08

            @sw0rdy: Probably. Not sure a simple query, can drop point by 60 points. It does not make sense to me honestly.

            • random12 on 11/05/2019 - 13:39

              @blitzzbargain: I am quite sure that views from utility companies are 'hard' (reduce your score). But its not much.

  • lette on 09/05/2019 - 02:51

    I wouldn't trust credit savvy. They say my rating is still up in the 800s when in reality my identity was stolen a year or so ago and Equifax report it under 400.

    • dylanando on 09/05/2019 - 08:27

      agreed, my actual score is trash but credit savvy says im doing well lol.

    • sw0rdy on 09/05/2019 - 08:53
      +1

      Yeah, that's because the credit savvy score has very limited data to work off, whereas Equifax is the largest credit bureau and has the most.

  • wannagrababargain on 09/05/2019 - 11:48
    +1

    My advice is to stop checking up on this and move on with your life.

    • blitzzbargain on 09/05/2019 - 17:47

      Not true if you are looking to refinance.

  • jimbobaus on 09/05/2019 - 16:40
    +2

    Lucky Credit "scores" are not worth anything when it comes to actually getting credit
    literally NO ONE uses them, they are a product of companies who offer you a free "check" then sell your info to third parties to sell you credit products.

    Banks: Do not use credit scores (they use their own internal lending criteria)
    CC Companies : Do not use credit scores (they use their own internal lending criteria)
    Teleco: Do not use credit scores (they use their own internal lending criteria)
    Third Party Home Loan Lenders: Do not use credit scores (they use their own internal lending criteria)
    the list goes on and on…

    checking your "score" on these sites is a pointless exercies and all you are doing is lining the pockets of the companies running them as they get to sell your info to the highest bidder.

    their advertisements literally have the disclaimer that your score is not always used when assessing you for credit.. it should read is almost NEVER used.

    • miwahni on 09/05/2019 - 21:45

      Organisation I work for, we use both credit score and our own internal risk profile. A Veda (equifax)score under 500 is an instant decline, no further assessment made.

    • random12 on 11/05/2019 - 13:41

      It is used (many times it is used as one of the inputs into a regression model for an internal score).

      It's just not the end all and be all.

  • random12 on 11/05/2019 - 13:34
    +1

    The formula used to calculate the score could have changed.

    I wouldn't worry about it. You score is still pretty good. Score only matters in the few months before getting a home loan, and it's still in a great category. Won't count against you.

    The trend will not continue. Credit scores do not have a 'memory'. It is based only on what is on your credit report at the time the score is calculated.

    And it's not like 'If score has decreased x points per month for the last 3 months, then continue decreasing x points'.

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