Why Has My Experian Credit Score Changed?

Checked your credit score this morning and noticed it has moved? Whether it has jumped up or taken a dip, seeing your Experian credit score change can feel confusing, especially if you have not done anything differently with your finances.

The good news is that credit score fluctuations are completely normal, and understanding why they happen puts you back in control. Let us break down exactly what causes your Experian credit score to change and what it means for your financial health.

What Actually Is Your Experian Credit Score?

Before we dive into why scores change, it is worth understanding what we are looking at. Your Experian credit score is a number between 0 and 1,000 that represents your creditworthiness based on your credit history. It is calculated using information from your credit file, which includes:

• Your credit accounts including credit cards, loans, and mortgages

• Payment history on those accounts
• Credit applications you have made
• Public records like defaults or court judgements
• How much credit you are using compared to your limits

Experian updates this information regularly as lenders report your account activity, which is why your score can change from month to month or even week to week.

The Most Common Reasons Your Score Changes

1. You Have Made or Missed Payments

This is the biggest factor. Every time you make a payment on a credit card, loan, or other credit account, that information gets reported to Experian. Consistent and on time payments gradually improve your score, while missed or late payments can cause it to drop.

Even one missed payment can impact your score, and the effect can last for several months. On the flip side, building a solid history of on time payments is one of the most effective ways to strengthen your credit profile over time.

2. Your Credit Utilisation Has Changed

Credit utilisation refers to how much of your available credit you are actually using. If you have a credit card with a $5,000 limit and you are carrying a $4,000 balance, you are using 80% of your available credit, which is quite high.

Lenders generally prefer to see utilisation below 30%. When you pay down balances, your utilisation drops and your score may improve. Conversely, if you have been using your credit cards more heavily, your score might decrease even if you are making all your payments on time.

3. You Have Applied for New Credit

Every time you apply for credit, whether it is a credit card, personal loan, or car finance, the lender typically performs a credit check. This creates a credit inquiry on your file, which can cause a small and temporary decrease in your score.

Multiple applications in a short period can have a more noticeable impact, as it may signal to lenders that you are experiencing financial difficulty. The good news is that inquiry impacts usually fade within a few months.

4. You Have Opened or Closed Credit Accounts

Opening a new credit account can initially lower your score slightly because it reduces the average age of your accounts. However, it also increases your total available credit, which can improve your utilisation ratio.

Closing an old account, particularly one with a long positive history, can also affect your score. It reduces your available credit and can increase your utilisation percentage on remaining accounts.

5. Negative Information Has Been Added or Removed

Defaults, court judgements, or other negative marks can significantly decrease your score when they are first added to your file. These items typically remain on your credit file for five years in Australia.

On the positive side, when negative information reaches the end of its reporting period and is removed from your file, you may see your score improve, sometimes quite substantially.

6. Time Has Passed

Simply put, time heals credit scores. Older negative information has less impact than recent issues. Even if nothing else changes, your score may gradually improve as negative marks become older and eventually fall off your file entirely.

Why Your Score Might Change When You Have Not Done Anything

This is a question we hear often at WeMoney. You might notice your Experian score has changed even though you have not applied for credit, missed payments, or done anything different. Here is why this happens:

• Regular reporting cycles: Lenders do not all report to credit bureaus on the same day. Some report monthly while others report less frequently. When your credit card company reports your current balance, your utilisation ratio changes, which can shift your score.

• Updated account information: Even routine account updates, like a credit limit increase you did not request, can affect your score by changing your utilisation ratio.

• Ageing of information: As mentioned earlier, the impact of both positive and negative information changes over time, which means your score can shift even without new activity.

• Credit file corrections: If you have disputed incorrect information on your credit file and it has been corrected or removed, your score will update to reflect the accurate information.

What Is Considered a Normal Credit Score Change?

Small fluctuations of 10 to 20 points from month to month are completely normal and usually nothing to worry about. These minor changes often reflect routine updates to your credit accounts.

Larger changes of 50 points or more typically indicate something more significant has happened, such as:

• A new default or negative mark
• A significant change in credit utilisation

• Multiple credit applications
• A large negative item being removed from your file

According to Experian credit score bands, scores are generally categorised as:

• Below average: 0 to 549
• Average: 550 to 624
• Good: 625 to 699
• Very good: 700 to 799
• Excellent: 800 to 1,000

Moving between these bands represents a more meaningful change in your credit standing.

Should You Be Worried About Score Changes?

The short answer is that it depends on the direction and size of the change.

Try not to worry about small fluctuations. Minor ups and downs are part of having active credit accounts. If your score drops by 15 points but you know you have been managing your credit responsibly, it is likely just routine reporting updates.

Consider investigating significant drops. If your score falls by 50 points or more, it is worth checking your credit file to understand what has changed. You might discover:

• An incorrect entry that needs disputing
• A missed payment you were not aware of
• An account you do not recognise which could indicate potential fraud
• A default you need to address

Celebrate meaningful increases. If your score has jumped significantly, it is a sign your credit management strategies are working. Keep doing what you are doing.

How to Check What Has Changed

The best way to understand why your credit score has changed is to regularly review your credit file. With WeMoney, you can track your Experian credit score and see updates as they happen, helping you spot changes quickly and understand what is driving them.

When reviewing your file, look for:

• New credit inquiries you do not recognise
• Changes to your account balances or limits
• New accounts you did not open
• Negative marks like defaults or late payments

• Accounts that have been closed

If you spot something that does not look right, you have the right to dispute it with Experian. Errors on credit files do happen, and correcting them can sometimes improve your score.

Tips to Keep Your Credit Score Stable and Healthy

While you cannot prevent all score fluctuations, you can take steps to maintain a healthy credit profile:

• Aim to pay everything on time. Set up automatic payments or reminders to ensure you never miss a due date.

• Keep credit utilisation low. Try to use less than 30% of your available credit limits. Paying down balances can help here.
• Limit credit applications. Only apply for credit when you genuinely need it, and space out applications over time.
• Check your credit file regularly. Monitoring your file helps you catch errors early and understand how your financial decisions affect your score.

• Keep old accounts open. If you have credit cards you are not using but they do not have annual fees, consider keeping them open to maintain your credit history length.
• Build a diverse credit mix. Having different types of credit like a credit card and a personal loan can positively impact your score, but only take on credit you can manage.

Understanding Credit File Access versus Credit Inquiries

One thing that often confuses people is the difference between checking your own credit score and a lender checking it. When you view your credit score through WeMoney or directly through Experian, this creates what is called a "credit file access note" on your record. This does not affect your credit score at all.

What does affect your score are "credit inquiries" or "hard inquiries," which occur when you actually apply for credit and a lender requests your file to make a lending decision. WeMoney allows you to check your score as often as you like without any negative impact.

What If Your Score Keeps Dropping?

If you have noticed your credit score declining consistently over several months, it is worth taking a closer look at your overall financial situation. Persistent score decreases might indicate:

• Accumulating debt that is increasing your credit utilisation
• Missed or late payments becoming more frequent
• Multiple credit applications suggesting financial stress
• Accounts going into default

If you are struggling with debt or finding it hard to keep up with payments, reaching out for help early can prevent further damage to your credit file. The National Debt Helpline (1800 007 007) offers free financial counselling for Australians experiencing financial difficulty.

Stay on Top of Your Credit Health

Understanding why your credit score changes is the first step. Knowing when it changes is what keeps you in control. With WeMoney, you can monitor your Experian credit score in real time, spot changes as they happen, and understand what is driving them before they become bigger issues.

Whether you are working to improve your score, protecting against identity fraud, or simply want to stay informed about your financial health, having your credit score at your fingertips means you are never caught off guard. Best of all, checking your score through WeMoney creates a credit file access note rather than a credit inquiry, so monitoring as often as you like will not impact your score.

Disclaimer: This article provides general information only and is not financial advice. WeMoney operates under Australian Credit Licence 526330. For personalised financial guidance, please consult a licensed financial adviser or conduct your own research before making financial decisions.