What on earth is going on ... ?

NicChanna

I'm hoping someone can explain this to me.

I have about £4000 of debt on a credit card and an overdraft. I'm working my way out of it and I have never missed a payment on the credit card or gone out of my overdraft.

On 3 April I went to find out my credit score from Experian. It was in the high "good" category. One of the things it told me to do to improve it was to register on the electoral roll. I did.

I check it again today, almost a month later and my credit rating has fallen to the mid-fair category. What has happened? I don't have any other cards or loans or anything. It's just credit card and overdraft and both of them are being paid off little by little and I always make more than the minimum payment to the credit card.

Waaah! I wish I'd never looked at my credit score!

cobblers_boy

I would not worry about it. The Experian credit score figure is a meaningless figure. It is not used by lenders when they make their decisions. It is Experians view of the limited amount of data they have available. Lenders will take a number of other factors into consideration.

Lenders do not even share there scorecard data with Experian so there is no way they could make a judgement on whether or not you are good, fair or indifferent for any given product.

CB

[Deleted User]

Agree with cobblers boy -

The score is meaningless, don't waste your money on it! If you were to apply for credit from any lender, they each apply their own credit scoring system.

If you want to unserstand about credit reports and credit scoring, have a look at Martin's info on the main site:

http://www.moneysavingexpert.com/loans/credit-rating-credit-score#files

HTH

D9