How is my credit score so low?

smj43

Back last year, my credit score was 350 on Experian. I had only just turned 18 and had no credit so it made sense. From then it started gradually going up. When I last checked it, it was at 450.

Now, I just checked it again this morning. 104!

How is this possible? Since it was 450, I got a credit card which is always paid in full every month. Surely it should have gone up? The only thing I can think of that would have brought it down is a failed Direct Debit from my bank which resulted in 1 late payment on my file. Surely that wouldn't bring it down so low? :mad:

KingElvis

Firstly, the score means nothing, diddly squat.

Secondly, a failed DD will affect your internal "score" with the bank but unless it put you into an unathourised overdraft, it shouldn't affect your credit score with the likes of Equifax etc etc

AND STOP PAYING HARD EARNED CASH FOR THOSE STUPID SCORES LOL

stephane_2

Your score with Experian means absolutely nothing, just a number taken out of thin air....don't waste your money. Every lender will have their own criteria before assessing your application and your score is not a reflection on how a potential lender will see you

CLAPTON

while credit scores mean nothing, it would be worth looking at your actual credit records to see exactly what is on them

BLT_2

You have been suckered in by Experian, it's amazing how many posts there are complaining about Payday Loans, YES loans etc on this site, but no one complains about Experians practice of advertising the benefits of their meaningless credit score, and charging people for it.

I have no issues with Experians service as a credit reference agency, what is appalling (apart from those awful advertisements) is this misconception they foist that there credit score has any relevance whatsoever to an individuals ability to obtain credit.

izools

smj43 wrote: »

resulted in 1 late payment on my file. Surely that wouldn't bring it down so low? :mad:

Whilst everyone is correct what they're saying regarding scores being mostly unhelpful as Experian can't possibly know how another creditor is going to interpret your credit file,

Your bank account's current status is "1" - otherwise known as "In arrears" (although the status codes for banks mean slightly different things the effect is the same).

You will find that whilst the current status of any of your accounts is "1" or above you'll find it near impossible to get even sub prime credit, so the score is accurate in that sense.

In six months to a years time, assuming all of the months between now and then are OK, it will have a lesser effect on your score.

But you need to be absolutely 100% careful with all of your accounts. You should know the dates on which all of your direct debits and standing orders are coming out, the dates and amounts you receive money, and should be able to plan more effectively.

If you know there's nothing you can do about an underfunding situation for an upcoming debit, cancel the DD / SO to avoid breaking the terms and conditions of your bank account.

smj43

izools wrote: »

Your bank account's current status is "1" - otherwise known as "In arrears" (although the status codes for banks mean slightly different things the effect is the same).

You will find that whilst the current status of any of your accounts is "1" or above you'll find it near impossible to get even sub prime credit, so the score is accurate in that sense.

The current status of my bank account is '0' and has been every month except the one (about 2 months ago now), where it was '1'.

Could this have really affected it so badly?

Also, surely the Experian credit score must have some reason for being lower. It can't be a randomly generated number, surely?

stephane_2

Yes it is don't bother....

lisyloo

A score from someone who won't lend you any money is meaningless.
I can give you a score for free but it won't actually mean anything.

JohalaReewi

smj43 wrote: »

Also, surely the Experian credit score must have some reason for being lower. It can't be a randomly generated number, surely?

Oh yes it is !! :beer:

izools

smj43 wrote: »

Could this have really affected it so badly?

Yes.

Would you lend to someone who has an account already in arrears?

And whilst the credit reference agency scores are unlikely to be representative of an individual creditors scoring techniques, they do contain a certain amount of truth. In the OP's case, his score has dropped dramatically as a result of one of his accounts currently being in breach of the terms and conditions and, as far as their credit file is concerned, is yet to be brought back in line with the terms of the account. I'm sure any creditor would agree with Experian's assessment of the situation in this instance

Don't worry OP, it will only hold you back for 6 to 12 months, and is probably a good thing giving you the incentive you need to put more effort into running your current account properly. Since my Bankruptcy I have never been 1p over my OD limit, never bounced a cheque or DD, and never had insufficient funds for an SO. Literally 24+ months 100% flawless account conduct and it is very possible with the right perspective. And for a lot of that time I had been supporting myself in a two bedroom apartment whilst only working 16 hours a week. Good luck! :beer: