How often does your credit score update in Australia?  

There are various credit reporting bodies for businesses and consumers in Australia, including CreditorWatch. Each has its own method for collecting and recording information to inform credit scores and reports.  

Because the data sources and time points for collection vary from one reporting agency to the next, there is no universal standard for when credit scores update. Most lenders are expected to report monthly to credit reporting bodies, and your score will change each time new information is added.  

What is a credit score, and how is it calculated? 

A credit score informs a lender or creditor of your risk as a borrower or debtor. The credit reporting bodies collect data concerning your payment tendencies, previous loans, active lines of credit and more. When analysed with advanced machine-learning technology such as RiskScore from CreditorWatch, a reporting agency can calculate a score representing the likelihood that you or your business will meet debt obligations on time.  

In the case of RiskScore, the datasets that inform business credit scores are extensive, including: 

• Over 11 million monthly tradelines from 55,000+ CreditorWatch customers, including SME payment data from Xero and MYOB 
• Advanced demographics data, including geographic clusters of risk, business maturity, entity type and tax status 
• Traditional credit risk drivers, including ATO tax defaults, ASIC notices, court judgements and bankruptcies. 

The sophisticated system analyses the debtor to generate a score from 0-850. A higher score represents a more creditworthy business – more likely to pay its bills on time. Each time new data is reported, the score is liable to change. This scoring scale and the data that informs the scores are proprietary to CreditorWatch. Each reporting bureau or agency has its own datasets and updates information at different intervals.  

When does a credit score update? 

Changes to your credit report in Australia aren’t instant. Creditors are not mandated to report to reporting bureaus or agencies with any frequency. Each lender has their own policy for delivering data, and each credit reporting body has its own process for collection. Some data reporting is automated, such as the trade payment data collected from Xero and MYOB by CreditorWatch. This allows for regular and consistent updating of corporate credit scores within RiskScore.  

In general, it has been stated that many lenders will report monthly to credit reporting bureaus, especially pertaining to individual consumer data. As such, you should generally expect your credit score to reflect updated information within 30-45 days, although this is not set in stone.  

How much do credit scores change when updated? 

It depends on the updated data passed through to the credit reporting bodies. Serious events, such as declarations of insolvency or bankruptcy, may have a considerable impact, whereas a hard enquiry on your credit file may make less of a difference. There’s no cap on the amount that a credit score can change between one report and the next – it just reflects an analysis of the most pertinent data available at the time.  

What about a rapid rescore? 

If you wish for new payment information to report quickly to a bureau or agency to improve your credit score and likelihood of credit approval, speak to the lender you’re applying to. They may be able to communicate this updated payment information to the reporting bodies sooner than they’d usually collect it, allowing for a quick update of your credit score. 

How can you access a free credit report? 

Individuals in Australia are entitled to a free copy of their personal credit report with each of the three reporting bureaus for consumers every three months to review. If you’re confused regarding how to read a credit report, consult a trusted financial advisor. They may be able to advise you on any further applications or steps you can take. Getting credit report advice may prevent unnecessary applications for debt.  

Australian businesses looking to access reports on businesses they deal with can sign up for a free account trial of the all-in-one Credit Reporting platform from CreditorWatch. 

Protect your cash flow with Credit Reporting from CreditorWatch 

The Credit Reporting suite from CreditorWatch represents the gold standard of risk mitigation and trading partner analytics for Australian businesses. With a simple ABN/ACN or company name search, you can reveal the RiskScore from 0-850 for any company, its payment rating from A1 to F, recommended actions relating to the extension of credit, and more.  

You’ll get access to view registered payment defaults, previous enquiries on that business’s credit file, court notices, ASIC listings and director bankruptcies. This information is vital for companies that want to proactively manage risk exposure and ensure they only trade with the most reputable and reliable partners. With over 50 public and private data sources, our platform represents the most sophisticated credit reporting and scoring technology available.  

What’s more, with the integration of the award-winning InfoTrack search portal, you can access a broad range of further reports and services from the CreditorWatch suite, such as police checks and Know-Your-Customer (KYC) reports, Anti-Money Laundering (AML), Politically Exposed Persons (PEP) and sanctions lists. With the power of our reporting services, you’ll know precisely who you’re dealing with and the risks they pose to your business. 

Sign up for a free trial, proactively manage your risk exposure, avoid risky trading partners and ensure your business has the tools to thrive.

Speak to our expert team today.