Getcreditscore - major changes in calculations?

AirbusA389 on 23/07/2021 - 12:08
Last edited 23/07/2021 - 12:34

Hi all! My mortgage broker and I have been using Getcreditscore since March 2020, and we noticed that my credit score has a sudden jump over in the past 4 week (714 to 900+). This looks too good to be true. Is this for real? lol

My credit score history since March 2020 have all become inaccessible. I can only view the scores for July 2021.

The GCS website vaguely mentioned about changes in the calculation method by Equifax. No implementation date has been indicated. Does anyone have the same experience with a major leap up or down in their scores?

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Comments

  • Trance N Dance on 23/07/2021 - 12:27

    We're starting to see the effects of the change to comprehensive credit reporting. It started in 2017 and has been affecting credit scores over the last 12-24 months in different ways. I saw a significant jump in my ratings in mid to late 2019.

  • brendanm on 23/07/2021 - 13:25

    Just signed up to check this thing, it says I have had multiple applications in a short amount of time, which I haven't, and also that I have an unsecured personal loan, which I don't. Seems a bit weird.

    • Mechz on 23/07/2021 - 13:28
      +7

      I'd be following that up if I was you.

      • Trance N Dance on 23/07/2021 - 14:33

        Please very much do follow that up.

      • brendanm on 23/07/2021 - 14:54

        Yes I plan to, doesn't sound promising.

      • brendanm on 23/07/2021 - 20:41

        Their idea of multiple credit enquires seems to be ridiculous. A few energy providers, Telstra, my mortgage, and 3 or 4 credit cards since 2016. This gives me a 1/6 on the bar graph.

        I get a 4/6 on the bar graph for "strong credit history", despite never having had a late payment, in fact I most often have cards paid off well before statement date, and mortgage being years ahead of where it should be. What the hell do they want to get 6/6?

        Having a home loan gives you a 4/6 on the "having a home loan" graph. What sort of scoring system does this thing use.

        Not sure what they are harping on about with the personal loan, as in the "full report" it isn't listed.

        • AirbusA389 on 24/07/2021 - 23:16

          my GCS portal also stated i have commercial loan applications, when my only source of income is via my work at the hospital.

          i have:
          - 5/6 for existing home loan applications,
          - 1/6 for credit card churning
          - 4/6 for closed credit card,
          - 1/6 for "frequent applications for commercial credit/loans" that i have no clue about.

    • Platinumtelecom on 23/07/2021 - 18:06

      Get your free Equifax credit report to be sure

  • MrThing on 23/07/2021 - 15:24
    +1

    credit scores are bs. way to much weight is put on credit applications and queries

    not enough weight is put on paying bills on time and being up to date with payments and having a perfect history of repayments

    A bank shouldn't care how many queries you have. they should be more worried about your track record for paying bills on time and in full

    • Trance N Dance on 23/07/2021 - 16:40

      That's what the comprehensive credit reporting reform in 2017 was for, and hence why some people will now notice a significant jump in their credit scores.
      Credit history now takes into account (amongst other things):
      - credit size
      - time credit has been held for
      - late payments (or lack of late payments)

      • MrThing on 23/07/2021 - 18:03
        +1

        I think ull find credit enquires count for a fairly large portion of the score

        • Trance N Dance on 23/07/2021 - 18:06

          Not as much anymore. If the CCR reforms are done correctly, credit inquiries should be negligible on credit score.

          • MrThing on 23/07/2021 - 18:09

            @Trance N Dance: well im not seeing it yet, I pay all my accounts on time in full but I churn credit cards like crazy (like 1 every 2 months)

            and my score dropped from 810 to 710 in a month

            • Trance N Dance on 23/07/2021 - 18:18

              @MrThing: The churning is what's hitting you. Your average credit held time will be dragging you down. It's not the inquiry that's hurting you it's the acceptance of a new line of credit.

              • MrThing on 23/07/2021 - 18:24

                @Trance N Dance: so it has nothing to do with your ability to repay the credit. its that credit card companies lose money on you so they penalise you for churning

                • Trance N Dance on 23/07/2021 - 19:01
                  +1

                  @MrThing: One way the banks can use the data that is available via a credit check yes. In theory when a bank sees you've opened 6 credit cards and have closed 6 credit cards in 12-24 months they can decline you their credit card purely on this. You are just not the customer they are wanting to service.

                  The credit reporting company just deems a new line of credit to be detrimental to your score, how this impact your score is up to the reporting institution. But most will probably weigh a new line of credit to be slightly more detrimental to closing the same value of credit.

                  The score isn't definitive of your ability to repay debt, just an indicator and a tool to help the credit institution meet their vetting requirements.

      • Platinumtelecom on 23/07/2021 - 18:08

        Something doesn’t make sense. They display your credit and credit card balances. Why not also display the savings balance…

        I could have $50k in credit and $100k in cash…just showing credits make no sense

        • Trance N Dance on 23/07/2021 - 18:20

          Because cash holding can be declared on application of the line of credit and is then taken into account when opening a new line of credit. Different institutions will treat what you hold differently.

          Your credit history is about your credit, cash holdings are credit related.

  • burningrage on 23/07/2021 - 20:07

    GetCreditScore looks to have changed.

    I now can see all of my Telcos and Utilities are included. Previously it was just the Mortgage and Credit Cards.

    As the result, my score didn't change between the old and new interface but I got marked for making too many credit enquiries which I have not in the last 12 months (if you include Telcos/Utilities) or 2 years for mortgage/credit cards only.

    This is a bad change.

    • Deeseeee on 23/07/2021 - 22:57

      Yeah I made an enquiry to up the limit of a citibank card I had sitting unused with a full balance for 2 years and apparently that's enough to give me the made to many enquiries 1 bar score lol

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