Credit Score dropped over 100 points?

vicxzy · 11 September 2017 at 7:21PM

Hi,

Could anybody tell me if this sounds right please?
I've been working hard over the last 12 months to get my credit score up as I am hoping to get a mortgage next year.
Last month I applied for a 0% Barclaycard to transfer my shocking rate credit card balance to in order to pay it down quicker.
I knew that my score would take a hit but as my old credit card was 49.9% APR I thought it was worth losing a few points off my credit score.
The search has actually knocked my Experian score down by 106 points in one month! 😭 Does that sound normal?

Thanks.

Grzegorz_Kowalski · 11 September 2017 at 7:27PM

In about 5 minutes, at least 3 people will tell you it is completely meaningless (because it is meaningless, indeed).

Following my balance transfer (similar to yours), the score dropped by about 8 points. I do not know why and... I do not really care..

[Deleted User] · 11 September 2017 at 7:39PM

Martin Lewis sells credit score points, if you want to buy some.

They're not cheap though. That's how he got so rich.

vicxzy · 11 September 2017 at 8:11PM

I have heard the whole it's meaningless thing before but If it's meaningless then why would my bank tell me that I need to improve my credit score to get a mortgage last year?

[Deleted User] · 11 September 2017 at 8:13PM

Because either

a) you spoke to someone who doesn't understand credit scoring or

b) they were talking about the score that THEY give you.

Your bank isn't interested in the opinion of an organisation that doesn't lend money and doesn't know your bank's lending criteria.

Destabilising · 12 September 2017 at 8:53AM

No one will see your credit score that is given to you by a CRA except you, if a lending organisation is saying you need to improve your score, they have their own scoring system. Your score dropping over 100 points for a search, though, that I unfortunately can not answer. As far as I'm aware, a single search shouldn't do that. Have you checked the rest of your report?

Car1980 · 13 September 2017 at 9:22AM

Tell us more about what your bank said. Did you apply for a Decision in Principle, just pop into a branch and enquire? What exactly?

vicxzy · 13 September 2017 at 9:50AM

Hi checked the rest of my report it is the only change I can see and the only change noted.
My score is poor but I pay everything on time no minimum payments etc I always pay more.
I nearly had it into fair category now it's dropped back down well into poor.
No CCJS, no late payments no defaults.
All the suggestions of how to improve my credit rating are not an issue. I'm on the voters roll etc. I have no idea why it is poor. No financial links to others. I am baffled. &#55357;&#56877;

vicxzy · 13 September 2017 at 9:52AM

I asked for an AIP but they said no my credit score is too low at the time.
Experian showed poor at the time, I managed to eventually get this almost into fair then it's dropped 100 points from one search again &#55357;&#56866;

[Deleted User] · 13 September 2017 at 9:52AM

You're baffled simply because your credit score doesn't reflect your credit worthiness.

For as long as you believe it does, your bafflement will remain and may even increase.

Make sure you check all three files, in case lenders are looking at other data sources.

takman · 13 September 2017 at 10:04AM

vicxzy wrote: »

I asked for an AIP but they said no my credit score is too low at the time.
Experian showed poor at the time, I managed to eventually get this almost into fair then it's dropped 100 points from one search again ��

They are talking about an internal credit score that is unrelated to a score given to you by any credit reference agency (CRA). They will calculate it in a different way (which is confidential) and will also take into account factors such as your wage and other information that isn't in your credit report.

You need to read up on here about credit score and exactly what they mean.

You also need to make sure you check all three of the main CRA's and not just experian to make sure all the information is correct.

How much credit do you currently have and how much do you owe?. Even with not missed payments if your near a credit card limit and are not paying it in full every month that won't look good when applying for a mortgage. Or even not having any history of cards/loans will also be a negative because you have no evidence of using credit and paying it back.

Credit Score dropped over 100 points?

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