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    • Numb Trucker
    • By Numb Trucker 27th Nov 17, 4:38 PM
    • 3Posts
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    Numb Trucker
    Credit Score gone down with No Changes
    • #1
    • 27th Nov 17, 4:38 PM
    Credit Score gone down with No Changes 27th Nov 17 at 4:38 PM
    Hi All,

    New here so bare with me. For the past five years I've been working so hard on rebuilding my credit score, to say it has been hard is a an understatement. I bought a car with high payments but kept up with them all the way a credit card to rebuild credit and never missed a payment. Now fast forward to March this year i became single and had a few bills that were becoming a pain popped to the bank and got a loan paid off the car the credit card and a couple of other bits making it easy with only 1 payment a month. my credit score took a huge hit! First of all because of the loan but also because i settled a few other debts I had, ok i can handle that I'mon the right path though (positive thoughts) since then though my credit score has only gone up once (yep haven't missed a single payment) then this morning my new report came out checked it and now i've found its gone down! Its really annoyed me i'm working so hard to get this right what am I doing wrong. I'm starting to believe its deliberate on the part of these companies. 5 years and my score has barley changed I'm sat posting this thinking what was the point!

    Anyway thats my story I hope someone can help with advice.
Page 1
    • Samsung_Note2
    • By Samsung_Note2 27th Nov 17, 4:54 PM
    • 205 Posts
    • 76 Thanks
    Samsung_Note2
    • #2
    • 27th Nov 17, 4:54 PM
    • #2
    • 27th Nov 17, 4:54 PM
    Indeed there is no point..no score and lifes a misery i mean a Mystery well at least so Nightcore say.

    As long as your other credit files show nothing nasty id not worry.
    • GothicStirling
    • By GothicStirling 27th Nov 17, 4:55 PM
    • 985 Posts
    • 725 Thanks
    GothicStirling
    • #3
    • 27th Nov 17, 4:55 PM
    • #3
    • 27th Nov 17, 4:55 PM
    I imagine that the credit scorer thinks that your amount of debt compared to your salary has you pushing how much more credit you could handle. Concentrate on paying down the debt, than taking out any more credit.
    • Numb Trucker
    • By Numb Trucker 27th Nov 17, 5:19 PM
    • 3 Posts
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    Numb Trucker
    • #4
    • 27th Nov 17, 5:19 PM
    • #4
    • 27th Nov 17, 5:19 PM
    But nothing has changed for months, I haven't gone over budget with any spending and I actually closed another account a couple of months ago due to not needing it any more. I'll look into your reply a bit more though maybe in some way that'll help me understand. Thanks
    • Tarambor
    • By Tarambor 28th Nov 17, 6:56 AM
    • 1,748 Posts
    • 1,198 Thanks
    Tarambor
    • #5
    • 28th Nov 17, 6:56 AM
    • #5
    • 28th Nov 17, 6:56 AM
    But nothing has changed for months, I haven't gone over budget with any spending and I actually closed another account a couple of months ago due to not needing it any more. I'll look into your reply a bit more though maybe in some way that'll help me understand. Thanks
    Originally posted by Numb Trucker
    It is a mickey mouse made up number which no lender uses. That's all you need to understand about a credit reference agency credit score.
    • nic_c
    • By nic_c 28th Nov 17, 8:51 AM
    • 1,123 Posts
    • 640 Thanks
    nic_c
    • #6
    • 28th Nov 17, 8:51 AM
    • #6
    • 28th Nov 17, 8:51 AM
    Advice? Ignore the Score....


    ... its what's in the report that matters.

    The CRA's abhor change, so whilst you can understand the loan application affecting it, because they don't know whether the loan would be used to pay off existing debt or simply accumulating new, its the getting rid of old debt that puzzles you. Well the good news is it will probably bounce back, its probably the fact that you have less available credit (so utilisation) that's in effect.

    Do what's best for you, and getting rid of car finance and cards and just paying 1 loan, if that works for you and affordable, then don't get stressed over a number that is mainly produced in the hope of hoodwinking the public to sign up for their add-on services because most lenders you will want to use in the future will look at what is in the report, they won't have the score.
    • RG2015
    • By RG2015 28th Nov 17, 9:21 AM
    • 591 Posts
    • 312 Thanks
    RG2015
    • #7
    • 28th Nov 17, 9:21 AM
    • #7
    • 28th Nov 17, 9:21 AM
    But nothing has changed for months, I haven't gone over budget with any spending and I actually closed another account a couple of months ago due to not needing it any more. I'll look into your reply a bit more though maybe in some way that'll help me understand. Thanks
    Originally posted by Numb Trucker
    You say nothing has changed but then you say you closed an account. Closing an account is a change.

    This shows how dumb credit scores are. You close an account and the score goes down. Any change in your financial activities could change the score and there is no way of knowing whether it will be up or down. If one of your banks has a glitch and fails to provide data to the CRA your score may change.

    I do not subscribe to the view that the scores are random. I do though believe that the scores do not reflect your true credit worthiness in any way. I also believe that the CRAs are attempting to manipulate our thinking by marketing our scores to us to get our money in one way or another.
    • Gary_Dexter
    • By Gary_Dexter 28th Nov 17, 9:39 AM
    • 160 Posts
    • 100 Thanks
    Gary_Dexter
    • #8
    • 28th Nov 17, 9:39 AM
    • #8
    • 28th Nov 17, 9:39 AM
    It's getting colder, so maybe your credit score thought it was a thermometer and dropped numbers?

    But seriously, ignore it. You took out a loan, cleared your car credit, cleared some old bills (were these late payments or defaulted bills?), and maybe, one morning you put your socks on the wrong feet - this is what led to the change in score
    • NineDeuce
    • By NineDeuce 28th Nov 17, 11:23 AM
    • 526 Posts
    • 468 Thanks
    NineDeuce
    • #9
    • 28th Nov 17, 11:23 AM
    • #9
    • 28th Nov 17, 11:23 AM
    Dont know but wouldnt your credit score decline after taking a loan? Your ability to pay back more credit would be hindered by this, especially if you arent earning more and inflation kicking in...
    • RG2015
    • By RG2015 28th Nov 17, 11:45 AM
    • 591 Posts
    • 312 Thanks
    RG2015
    Dont know but wouldnt your credit score decline after taking a loan? Your ability to pay back more credit would be hindered by this, especially if you arent earning more and inflation kicking in...
    Originally posted by NineDeuce
    The following definition of Credit Score is on Wikipedia

    The most popular statistical technique used is logistic regression to predict a binary outcome: bad debt or no bad debt. Some banks also build regression models that predict the amount of bad debt a customer may incur. Typically this is much harder to predict, and most banks focus only on the binary outcome.

    Credit scoring is closely regulated only by the Financial Conduct Authority when used for the purposes of the Advanced approach to Capital Adequacy under Basel II regulations.

    Credit scoring is closely regulated in the UK, with the industry regulator being the Information Commissionerís Office (ICO). Consumers can also send complaints to the Financial Ombudsman Service if they experience problems with any Credit Reference Agency.


    So now you know.

    If it wasn't for bad debt I would have no debt at all.
    Last edited by RG2015; 28-11-2017 at 11:48 AM.
    • antrobus
    • By antrobus 28th Nov 17, 12:11 PM
    • 15,297 Posts
    • 21,828 Thanks
    antrobus
    The following definition of Credit Score is on Wikipedia...
    Originally posted by RG2015
    Mmm, yes, well. There is a reason why Wikipedia is not a source.

    The FCA may well 'regulate' the use of credit scoring by banks etc. But I would suggest that nobody regulates the credit scores produced by CRAs, for the simple reason that nobody sees them other than the individual concerned.

    So I don't think either the ICO or the FOS would be interested.


    If it wasn't for bad debt I would have no debt at all.
    Originally posted by RG2015
    Born under a bad sign were you?
    • RG2015
    • By RG2015 28th Nov 17, 2:45 PM
    • 591 Posts
    • 312 Thanks
    RG2015
    Mmm, yes, well. There is a reason why Wikipedia is not a source.

    Born under a bad sign were you?
    Originally posted by antrobus
    Re Wikipedia. Gobbledegook is gobbledegook whatever the source or non-source.

    Oh yes, but the cream always rises to the top.
    • Tarambor
    • By Tarambor 29th Nov 17, 11:02 AM
    • 1,748 Posts
    • 1,198 Thanks
    Tarambor
    Mmm, yes, well. There is a reason why Wikipedia is not a source.
    Originally posted by antrobus
    And thankfully it is easy to fix which I've just done.
    Last edited by Tarambor; 29-11-2017 at 11:14 AM.
    • RG2015
    • By RG2015 29th Nov 17, 12:19 PM
    • 591 Posts
    • 312 Thanks
    RG2015
    The whole point of posting the Wikipedia statement was to demonstrate that a credit score is nonsense.
    • Numb Trucker
    • By Numb Trucker 29th Nov 17, 3:21 PM
    • 3 Posts
    • 0 Thanks
    Numb Trucker
    The bills I paid off were towards gas bill and a catalogue I had been using at the time, I read somewhere that making small purchases then repaying them quicker helped your score. Now reading all these comments I'm thinking of cancelling my score report account. My report is fine no defaults ccj's anything like that. The only negative I have is that my credit card limit is low pfft!!! thats how i want it stay as well

    Thanks
    • zx81
    • By zx81 29th Nov 17, 3:25 PM
    • 14,386 Posts
    • 15,174 Thanks
    zx81
    Now reading all these comments I'm thinking of cancelling my score report account.
    Originally posted by Numb Trucker
    If you're paying for the score, definitely cancel it. Just view your reports when you need to.
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