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Should I investigate unexpected drop in credit score?
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[Deleted User]
Posts: 0 Newbie
in Loans
Hello!
I've been registered with Experian's Credit Expert for a couple of years to help me keep on top of my credit record.
I'm confused because my credit score has recently taken quite a big hit, but looking at my accounts I can't actually see anything that might have caused this - and I wondered if I should investigate.
On 18th June 2008 (about a year ago), my credit score was 928 (GOOD), but today I have checked and it is 621 (POOR).
In the past year, I have not taken on any additional debt and my total outstanding balances have all reduced significantly.
I haven't applied for any credit cards or other debt, but I have applied (and been accepted) for two IT hardware rentals for my own business - these are for my LTD company, but the search was made on my personal report. I understand that searches can lower credit scores, but this was for a separate legal entity and is not a hire purchase agreement (it's a business rental scheme including IT support used by many small businesses across the UK!).
In April 2008 - so, at a time when it should be influencing LAST YEAR's credit report - I had an account with A&L on which I received a default (long story short: I closed the account but didn't realise interest charges would be applied after I closed it...forgot about the account until I received a letter informing me I had a default...all because of being £4.54 overdrawn) and my payment history (according to my report) was terrible at the time: 3-3-3-3-3-3-3-3-3-2-0-2-0: but that was LAST YEAR and having closed the account down, all my other accounts are fully up-to-date with no missed payments.
I'm confused how my credit score could have dropped so much in the space of a year. YES, I had a bad experience with Alliance and Leicester, but that was in April 2008 and so presumably should have affected my 2008 credit score which was good? Since then my accounts have been managed well - and although I've had two credit searches (both of which were approved and were for a LTD not for me) I can't see how that could have knocked my credit rating down from Good to Poor (928 to 621). All my other accounts have [0] payments late.
Am I missing something? I'm on the electoral roll (in 2008 I wasn't!) and all the factors suggest that my credit score should be getting better, not worse!
Can anyone help or suggest other reasons I need to look further?
I've been registered with Experian's Credit Expert for a couple of years to help me keep on top of my credit record.
I'm confused because my credit score has recently taken quite a big hit, but looking at my accounts I can't actually see anything that might have caused this - and I wondered if I should investigate.
On 18th June 2008 (about a year ago), my credit score was 928 (GOOD), but today I have checked and it is 621 (POOR).
In the past year, I have not taken on any additional debt and my total outstanding balances have all reduced significantly.
I haven't applied for any credit cards or other debt, but I have applied (and been accepted) for two IT hardware rentals for my own business - these are for my LTD company, but the search was made on my personal report. I understand that searches can lower credit scores, but this was for a separate legal entity and is not a hire purchase agreement (it's a business rental scheme including IT support used by many small businesses across the UK!).
In April 2008 - so, at a time when it should be influencing LAST YEAR's credit report - I had an account with A&L on which I received a default (long story short: I closed the account but didn't realise interest charges would be applied after I closed it...forgot about the account until I received a letter informing me I had a default...all because of being £4.54 overdrawn) and my payment history (according to my report) was terrible at the time: 3-3-3-3-3-3-3-3-3-2-0-2-0: but that was LAST YEAR and having closed the account down, all my other accounts are fully up-to-date with no missed payments.
I'm confused how my credit score could have dropped so much in the space of a year. YES, I had a bad experience with Alliance and Leicester, but that was in April 2008 and so presumably should have affected my 2008 credit score which was good? Since then my accounts have been managed well - and although I've had two credit searches (both of which were approved and were for a LTD not for me) I can't see how that could have knocked my credit rating down from Good to Poor (928 to 621). All my other accounts have [0] payments late.
Am I missing something? I'm on the electoral roll (in 2008 I wasn't!) and all the factors suggest that my credit score should be getting better, not worse!
Can anyone help or suggest other reasons I need to look further?
0
Comments
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Have a look at Martin's guide - the number itself means nothing.Nothing I say represents any past, present or future employer.0
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Sorry - just to add a further comment to this:
I've just checked my records and can see that Rentsmart Ltd - the people from whom I rent my office IT equipment - have actually conducted four searches (two searches on the same day, on two different days...for two separate rentals).
Given that I am a LTD and it is the LTD that is the party on the rental agreement, is there anything I can do to get these searches removed? Shouldn't they have only searched twice if there are two agreements?0 -
p.s. Yes, I appreciate that the number alone means nothing, but at the same time it has decreased so the relative decline in the number DOES mean something. If Experian view me as a 'poor' borrower then I'm assuming others using that data may also come to the same conclusion.0
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Can anyone help please?0
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I'd be tempted to contact Experian and ask why your score has dropped.0
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The score means zip. However a default will mess up any applications for the next 6 years regardless...0
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You've got a years worth of late payments, mainly at 3 months (all the 3's). I would say that is the reason!Got Halifax Classic to reduce my interest rate by 5% woohoo - 10/06/08 Thanks MSE!
Another 3% shaved off 10/12/08
ANOTHER 4 % June 09:beer:0 -
Does anyone bother to read my original post?!
The late payments were there WAY before 2008 when my credit rating was excellent (928). It has been excellent until recently...so why the RECENT and SUDDEN drop?
Sorry to be rude, but every time I use these forums people never seem to read the question and instead just post whatever comes into their heads first. I'm looking for specific thoughts:
Lots of missed payments in 2007, account settled in April 2008.
In May 2008, credit score was still excellent, all the way through to May 2009.
Then, score plummets from 'good' to 'poor'.0 -
Given recent economic events and the number of people on this and other forums who have seen credit card available balances be slashed, I wonder if the criteria for a "good" score have been tightened up?
Only other issues seem to be the number of searches, but don't know if that would effect a score that much in such a short time.
ali x"Overthinking every little thing
Acknowledge the bell you cant unring"0 -
Complain to your mp as credit agencies are overseen by NO_ONE faceless and toothless.0
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