Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • vicxzy
    • By vicxzy 11th Sep 17, 7:21 PM
    • 262Posts
    • 160Thanks
    vicxzy
    Credit Score dropped over 100 points?
    • #1
    • 11th Sep 17, 7:21 PM
    Credit Score dropped over 100 points? 11th Sep 17 at 7:21 PM
    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.
Page 1
    • Grzegorz Kowalski
    • By Grzegorz Kowalski 11th Sep 17, 7:27 PM
    • 18 Posts
    • 8 Thanks
    Grzegorz Kowalski
    • #2
    • 11th Sep 17, 7:27 PM
    • #2
    • 11th Sep 17, 7:27 PM
    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..
    • zx81
    • By zx81 11th Sep 17, 7:39 PM
    • 13,184 Posts
    • 13,494 Thanks
    zx81
    • #3
    • 11th Sep 17, 7:39 PM
    • #3
    • 11th Sep 17, 7:39 PM
    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
    • By vicxzy 11th Sep 17, 8:11 PM
    • 262 Posts
    • 160 Thanks
    vicxzy
    • #4
    • 11th Sep 17, 8:11 PM
    • #4
    • 11th Sep 17, 8:11 PM
    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?
    • zx81
    • By zx81 11th Sep 17, 8:13 PM
    • 13,184 Posts
    • 13,494 Thanks
    zx81
    • #5
    • 11th Sep 17, 8:13 PM
    • #5
    • 11th Sep 17, 8:13 PM
    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
    • By Destabilising 12th Sep 17, 8:53 AM
    • 32 Posts
    • 21 Thanks
    Destabilising
    • #6
    • 12th Sep 17, 8:53 AM
    • #6
    • 12th Sep 17, 8:53 AM
    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
    • By Car1980 13th Sep 17, 9:22 AM
    • 154 Posts
    • 74 Thanks
    Car1980
    • #7
    • 13th Sep 17, 9:22 AM
    • #7
    • 13th Sep 17, 9:22 AM
    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
    • By vicxzy 13th Sep 17, 9:50 AM
    • 262 Posts
    • 160 Thanks
    vicxzy
    • #8
    • 13th Sep 17, 9:50 AM
    • #8
    • 13th Sep 17, 9:50 AM
    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. ��
    • vicxzy
    • By vicxzy 13th Sep 17, 9:52 AM
    • 262 Posts
    • 160 Thanks
    vicxzy
    • #9
    • 13th Sep 17, 9:52 AM
    • #9
    • 13th Sep 17, 9:52 AM
    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 ��
    • zx81
    • By zx81 13th Sep 17, 9:52 AM
    • 13,184 Posts
    • 13,494 Thanks
    zx81
    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
    • By takman 13th Sep 17, 10:04 AM
    • 2,624 Posts
    • 2,178 Thanks
    takman
    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 ��
    Originally posted by vicxzy
    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.
    • vicxzy
    • By vicxzy 13th Sep 17, 10:35 AM
    • 262 Posts
    • 160 Thanks
    vicxzy
    I have a 2 credit cards and some catalogues I always pay more than the minimum payments on them and the balance is under 30% of the total limits.
    I have a decent income too. I don't know what more I can do.
    • zx81
    • By zx81 13th Sep 17, 10:37 AM
    • 13,184 Posts
    • 13,494 Thanks
    zx81
    Unless the card and catalogues are on 0%, you should be clearing these in full each month, not just making more than minimum payments.

    How do your debts compare to your income?
    • vicxzy
    • By vicxzy 13th Sep 17, 11:13 AM
    • 262 Posts
    • 160 Thanks
    vicxzy
    I can't afford to clear them every month as I've been saving £1000 per month for the mortgage deposit for the past year. I also have rent & childcare bills etc to pay so it is just not feasible right now.
    I owe about 3K altogether but this is coming down every month.
    The credit card is now 0% I transferred it to a 0% card and lost 100 points on my credit score for doing so.
    • zx81
    • By zx81 13th Sep 17, 11:33 AM
    • 13,184 Posts
    • 13,494 Thanks
    zx81
    The points don't matter. No one sees them, no one care about them and you can't exchange them for Nectar points.

    Credit scores hate change. It you want a top score, never use a card, never close a card, never get into debt, never clear a debt, never get older, never move house, never change your phone contract, never change utility suppliers. Simply do not move a muscle. You'll have a top score and no lender will ever give you credit.

    Any debt will be factored into a mortgage application, so you would be better off clearing anything not at 0% before building the deposit. 3k of your deposit is effectively borrowed.
    Last edited by zx81; 13-09-2017 at 11:39 AM.
    • takman
    • By takman 13th Sep 17, 1:01 PM
    • 2,624 Posts
    • 2,178 Thanks
    takman
    I can't afford to clear them every month as I've been saving £1000 per month for the mortgage deposit for the past year. I also have rent & childcare bills etc to pay so it is just not feasible right now.
    I owe about 3K altogether but this is coming down every month.
    The credit card is now 0% I transferred it to a 0% card and lost 100 points on my credit score for doing so.
    Originally posted by vicxzy
    This is the issue then because if you can't afford to pay off a £3k debt in full after many many months then that is going to be a big negative when you want to get a mortgage.

    As Zx81 says you need to clear this with some of the money you have saved for your deposit to show you can actually repay debts in full.
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

927Posts Today

6,080Users online

Martin's Twitter
  • Shana tova umetuka - a sweet Jewish New Year to all celebrating. I won't be online the rest of t'week, as I take the time to be with family

  • Dear Steve. Please note doing a poll to ask people's opinion does not in itself imply an opinion! https://t.co/UGvWlMURxy

  • Luciana is on the advisory board of @mmhpi (we have MPs from most parties) https://t.co/n99NAxGAAQ

  • Follow Martin