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  • FIRST POST
    • JRP1414
    • By JRP1414 18th May 17, 1:36 PM
    • 31Posts
    • 2Thanks
    JRP1414
    Credit Score Affected - A Cautionary Tale
    • #1
    • 18th May 17, 1:36 PM
    Credit Score Affected - A Cautionary Tale 18th May 17 at 1:36 PM
    Hi

    I just wanted to share with you all my story, as a bit of a warning to others who may be in the same situation.

    My Experian credit score has always been near-perfect; well within the top 900s. I pay everything on time, I'm on the electoral roll, have a mortgage, etc.

    Recently, I inherited a sum of money from my grandparents. Nothing major, but enough to want to do something wisely with it. I was in the process of remortgaging to get a better rate, so used most of it to pay off a chunk of my mortgage and get an even better rate. For the remainder, I looked into savings accounts, but as I'm sure you will be aware, the interest rates at the moment are virtually non-existent.

    Consequently, I followed advice on MSE to look at higher interest paying current accounts. I opened 3 accounts in order to spread the money and get the best returns.

    However, I've just received my latest MSE Credit Club Experian score and can see that it has plumetted from 998 last period to low 800s this period. Consequently, it has gone from 'Excellent' to 'Fair'.

    When I've looked at why this is, I can see that it's because on paper, I've applied for 4 credit products in a short space of time - the mortgage and the three current accounts.

    I guess that even though the three current accounts actually have a positive balance and I won't be using the overdraft facility, it appears to other lenders that I'm desperate for credit.

    I don't know whether I can do anything to rectify this. I know some people say the credit score is meaningless, but it's clear to me that Experian must consider it important, else they wouldn't publish it and neither would MSE Credit Club.

    Anyway, just a warning to others who may be wanting to use high interest current accounts to invest their money. Perhaps space out applications a little to avoid it appearing as though you are in a financial crisis!
Page 1
    • zx81
    • By zx81 18th May 17, 1:40 PM
    • 13,220 Posts
    • 13,528 Thanks
    zx81
    • #2
    • 18th May 17, 1:40 PM
    • #2
    • 18th May 17, 1:40 PM
    I know some people say the credit score is meaningless, but it's clear to me that Experian must consider it important, else they wouldn't publish it and neither would MSE Credit Club.
    Originally posted by JRP1414

    It's clear that both Experian and MSE consider it a profitable gimmick to keep customers interested in their respective products.

    Just because something is published does not make it valuable. Are you aware of the works of the popular pop combo One Direction?

    Only your credit file is of value. Fortunately for you, this means there is nothing to rectify.
    • JRP1414
    • By JRP1414 18th May 17, 1:44 PM
    • 31 Posts
    • 2 Thanks
    JRP1414
    • #3
    • 18th May 17, 1:44 PM
    • #3
    • 18th May 17, 1:44 PM


    Well that explains it. I did wonder why it had dropped so much, but now I understand.

    Disappointing that it's promoted as something worth taking note of.

    Thank you for the advice.
    • StopIt
    • By StopIt 18th May 17, 1:56 PM
    • 900 Posts
    • 822 Thanks
    StopIt
    • #4
    • 18th May 17, 1:56 PM
    • #4
    • 18th May 17, 1:56 PM
    A cautionary tale indeed.


    Your credit score is meaningless, your credit history is not.


    At worst, your average account age will have came down, which is an indicator to lenders but of little harm.


    However, you've already demonstrated that your credit score didn't change your outcome of getting a better mortgage rate, which is more important than what Experian rate you as.


    You'll notice after a few months your score will go back up, despite you not doing anything.
    • DCFC79
    • By DCFC79 18th May 17, 2:13 PM
    • 29,975 Posts
    • 18,980 Thanks
    DCFC79
    • #5
    • 18th May 17, 2:13 PM
    • #5
    • 18th May 17, 2:13 PM
    Nothing new to spread applications out.

    How do Noddle and clear score rate you, not as good I bet.

    Not everyone will use Experian nor will they use all 3 agencies.
    Can people stop loaning money/being a guarator to family/friends, it rarely ends well and you lose out as your money is gone or you get shafted with being a guarantor.
    • TheDebtinator
    • By TheDebtinator 18th May 17, 3:49 PM
    • 230 Posts
    • 63 Thanks
    TheDebtinator
    • #6
    • 18th May 17, 3:49 PM
    • #6
    • 18th May 17, 3:49 PM
    It's clear that both Experian and MSE consider it a profitable gimmick to keep customers interested in their respective products.

    Just because something is published does not make it valuable. Are you aware of the works of the popular pop combo One Direction?

    Only your credit file is of value. Fortunately for you, this means there is nothing to rectify.
    Originally posted by zx81
    It really is a disappointment that there isn't a pop up for new members explaining that your Experian etc credit score is pointless.. It would save so many posts.
    • MABLE
    • By MABLE 18th May 17, 6:29 PM
    • 3,288 Posts
    • 1,749 Thanks
    MABLE
    • #7
    • 18th May 17, 6:29 PM
    • #7
    • 18th May 17, 6:29 PM
    I just love good cautionary tale but not this one.
    • antrobus
    • By antrobus 18th May 17, 7:13 PM
    • 15,050 Posts
    • 21,386 Thanks
    antrobus
    • #8
    • 18th May 17, 7:13 PM
    • #8
    • 18th May 17, 7:13 PM
    ..When I've looked at why this is, I can see that it's because on paper, I've applied for 4 credit products in a short space of time - the mortgage and the three current accounts...
    Originally posted by JRP1414
    A current account is not a credit product. Unless (of course) you also apply for an overdraft. Which is optional, you know.


    .
    • forgotmyname
    • By forgotmyname 18th May 17, 8:28 PM
    • 25,723 Posts
    • 10,226 Thanks
    forgotmyname
    • #9
    • 18th May 17, 8:28 PM
    • #9
    • 18th May 17, 8:28 PM
    Hi
    I know some people say the credit score is meaningless, but it's clear to me that Experian must consider it important, else they wouldn't publish it and neither would MSE Credit Club.
    Originally posted by JRP1414
    They publish it because you used to have to pay to get it. Before most people were on the internet and forums like this popped up people paid for it and assumed a high score was the important factor.

    When they had a good score and got rejected for loans etc then were puzzled and had nowhere to turn to.

    Its like people buying SIM cards on ebay, when you can get them for free. Why do people do that? Because they dont know you can get them for free?
    Punctuation, Spelling and Grammar will be used sparingly. Due to rising costs of inflation.

    My contribution to MSE. Other contributions will only be used if they cost me nothing.

    Due to me being a tight git.
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