My Credit Score has just plummeted 260 points overnight

easylogic

So my credit score has taken two massive hits in just 1 week.I was at 780 points a week ago with Experian.Which is fair.

Last month i took out my first credit card with Vanquis with a limit of 250£.My intention was to use it regurlaly and pay it off at the end of the month.So i used upto 200 pounds and i just paid it off a few days ago.

Then two things happened.HSBC errenously recorded a missed payment yet i do not have any overdrafts on my account and i have not gone into any negative.this took out close to 85 points from my score.I have since disputed this missed payment entry and i am still waiting for a response from HSBC.

The second thing is, it seems Vanquis have not yet reported my payment to the credit agency because today morning i woke up and this was on my credit report:

The usage of your available credit indicates a higher risk
Usage : 90%

This took out 260 points from my score and now my score is about 460 points and is at Very Poor.

My questions are:
1.How long does it take normally for banks, and HSBC in particular to remove a disputed missed payment?

2.If they remove it, will my score improve immediately?

3.Once Vanquis report my balance has been cleared, will i get the 260 points back immediately?

I am afraid that this negatives will cost me alot of lost time in gaining back my original score.

I know many of you are of the view that these scores are meaningless, but again, these entries are also on my report.And if i am viewed as a high risk borrower, then i am unlikely to be accepted for any credit in the future.

steve1980

POINTS DO NOT MEAN PRIZES!!!

Your "score" means absultely nothing. They are three randomly generated numbers by credit references agencies.

OllyM

HSBC haven't recorded a missed payment - a '1' means that they have bounced a direct debit, cheque or standing order. Have you had any unpaid items in the last few months?

want-it-all

Can't explain why it has happened (since there are always a number of factors in play), but your credit score itself really isn't that important.

JohalaReewi

The scores from Exerian are NOT credit scores.
They are just plain old scores made up by Experian to 'represent' your credit report with them.

Real credit scores are calculated by lenders (companies who offer credit) and they do not tell you what your score was or how they got it.

So. Don't worry about the Experian score or pay out good money for it.
Do get a copy of your credit report from Experian (the £2 statutory report is all you need).
Check the the report shows you as on the electoral role at your current address.
Also check that all other data about you is correct. If not, report it to Experian.

The same applies to scores from other credit reference agencies (Equifax, Callcredit).

jon_boy75

HSBC/first direct are the only bank (i know of) who report bounced DDs. first direct come highest in customer satisfaction scores, but they're strict as hell in terms of credit reporting on this issue.

If it was for a returned DD, even if the recipient considers it was then paid on time, it will remain on your file. Believe me, I've been there and left first direct as a result. And this was for a bounced DD paid by card on the phone that very day.

jon_boy75

...and finally, if it's only 1 late payment, relax and wait a few months for your score to come back up. If you care about your score, which is indeed meaningless.

StrangelyBrown

jon_boy75 wrote: »

HSBC/first direct are the only bank (i know of) who report bounced DDs.

Is that true?

I have an account (plus overdraft) with HSBC and it doesn't show on my Experian records, let alone bounced DDs (and yes, I've had more than one!)

jon_boy75

I believe it depends on when you opened your account. For older accounts, they didn't ask permission for this type of data sharing (in the T&Cs we signed), so you should be fine.

For newer accounts, like mine, they did and they're reporting everything. I opened my account in August 2005 (closed last year). I would guess yours is older than that...?

want-it-all

StrangelyBrown wrote: »

Is that true?

I have an account (plus overdraft) with HSBC and it doesn't show on my Experian records, let alone bounced DDs (and yes, I've had more than one!)

I haven't had a bounced DD in ages, but there was a time I had many, and have been banking with HSBC (and only HSBC) since I was 11. Have never noticed anything of the sort on my own Experian report...

StrangelyBrown

jon_boy75 wrote: »

I opened my account in August 2005 (closed last year). I would guess yours is older than that...?

Yes, mine is definitely older than 2005 - looks like I got off lightly there then!