Credit Score has dropped ?

jimpix12 · 13 September 2008 at 11:44PM

Hi all :P

First of all, I know that the actual Scoring system used is flawed and should not be relied upon greatly.

I found out my credit score from Experian back in March 08 and it came to 867 - Fair. I then decided to take out a credit card per Martin's advice on Credit Repair. I've had it for 5 months now and have always repaid it in time. I have also increased my overdrafts and my credit limits but have not taken on any actual new credit/loans.

I checked my Credit Score again tonight thinking it'd now be classed as "Good" - but alas it's DROPPED! Down to 807. I have not missed a single payment for a number of years, and nothing of that nature shows up on my credit file. I have all green 0s... I am also on the Electoral Roll. The only piece of advice Experian give is that I have a lot of outstanding credit (car loan) - about £2k, but I took this out 2 years ago and it;'s obviously reduced since March when my credit rating was higher. What's going on??

Any advice appreciated.

YorkshireBoy · 13 September 2008 at 11:52PM

spunko2010 wrote: »

I have also increased my overdrafts and my credit limits

You may have answered your own question?

You also have more 'lines of credit' now than you had earlier this year.

Alternatively, perhaps you are now financially associated with someone, whereas you weren't before?

Then again, maybe the CRA has tweaked the [strike]algorithm[/strike] guesswork used in [strike]calculating[/strike] having a stab at your 'score'

jimpix12 · 13 September 2008 at 11:58PM

Hi , thanks for your reply.

I was under the impression that more credit was a good thing - as long as it was not abused/not paid up in time.

I suppose the easiest option for me is to pay the remaining balance on the car loan, which I can do this week. My intentions were to do this then apply for a new loan some weeks later on the new car I'm buying - if I did this, how long would it take to "update" my information? In other words I don't want to apply for another loan if the current one does not show as resolved at that point.

It's worth stating as well that although I have increased my overdrafts I very rarely use them these days as well. Could that make a difference? I tend to just use them so that they are used and not because I need to (unused credit looks bad I thought).

YorkshireBoy · 14 September 2008 at 12:09AM

spunko2010 wrote: »

I was under the impression that more credit was a good thing - as long as it was not abused/not paid up in time.

Depends on a whole host of other factors, most notably affordability, ie ability to repay if you were to go out and blow it all (perhaps because you lost your job for example). There's a useful article on credit scoring here...

http://www.stoozing.com/g_score.htm (be sure not to miss pages 2-6)

...how long would it take to "update" my information?

Anywhere from a month to 4 months in my experience. Best bet (assuming you're not signed up to a monthly subscription) is to wait a month and order your £2 postal reports. These are valid for 90 days so you can keep ringing them for updates. They'll ask you to ring 0870 numbers, but you'll find freephone equivalents on www.saynoto0870.com

It's worth stating as well that although I have increased my overdrafts I very rarely use them these days as well. Could that make a difference?

Yes, but possibly not enough of a difference.

I tend to just use them so that they are used and not because I need to...

You're incurring unnecessary costs, and possibly damaging your credit rating into the bargain. Better to have it and not use it in my opinion.

BYALPHAINDIA · 14 September 2008 at 1:52AM

Hi, I have been with the Halifax for 6 years, When I got married they said all the usual words - we will help you along the way!!

We desperately needed an overdraft, As obviously money was very tight, But because I had no Credit Cards or loans, They said not enough points.

Now 6 years later, I have adequate amounts of money ingoing into the account, I still cannot get an overdraft, I don't 'technically' need one now as things do eventually improve or (should) do!!

I have never had a Credit Card in my life, I don't do Loans, If we can't afford it we don't do it - simple.

But it would still be good to have a so called 'back-up' resource of a small overdraft.

As we ALL seem to be living week to week at the moment

What puzzles me is we have a 75% mortgage of 89,000, No Neg equity or arrears whatsoever the mortgage is the 1st priority EVERY time.

I stormed out of one Yorkshire Branch of the Halifax, The staff were in a 'very' jovial mood as it was 'red nose day' and they seemed to show no duty of care towards me whatsoever when I actually needed it!!

I told them what I thought of them, But they have improved slightly in their Customer Service area I would say since.

Customer service was - NIL that day.

I am of the old school, And I pay in cash, At the end of the day you cannot beat cash and never will no matter what the CreditCard/Loan sharks dictate to you.

Good Luck Out There It's A Madhouse
(Hysterical Houses)

Best Regards.

Credit Score has dropped ?

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