My Credit Score has just plummeted 260 points overnight

limitation

easylogic wrote: »

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.

1. Depends on the bank and the type of dispute, Although from the date of removal it'll take until the date of when the credit reference agencies update their information, Which could be over night to a couple of days to the end of month !

2. No such thing as a 'Score' in reality, This is just a made up figure by Experian, Equifax and callcredit that has no bearing on credit applications at all ! It's their to give you an idea of how healthy your credit is in general ! But someone with a 999 credit score might be declined for a credit product where as someone with a 500 score would be approved, Never go on their scores, They're meaningless really. Banks and credit institutions score you using their own in house internal scoring methods calculated by the information you provide on the application form and the information they obtain in regards to your current and previous credit account conduct via the CRA's.

3. No idea. I wouldn't worry about those fictional points that have no bearing on anything you'll ever apply for. Once you clear the balance assuming its not late or overdue then you'll get nice green markers showing that you're making on time payments ! Making you a better and more attractive customer to potential lenders.

easylogic

Thanks guys fro your support.I know as much as you guys tell me the scores mean nothing, i just can't get over the fact that i have a very poor credit score.

About HSBC reporting a bounced direct debit, i can recall only 1 bounced direct debit from my phone company, last year, but it was not reported as a missed payment by my phone company since on second trial the direct debit went through.

So how long will this missed payment continue to have an effect on my credit file?Since i have disputed it, is there a chance that HSBC will remove it?

easylogic

limitation wrote: »

1. Depends on the bank and the type of dispute, Although from the date of removal it'll take until the date of when the credit reference agencies update their information, Which could be over night to a couple of days to the end of month !

2. No such thing as a 'Score' in reality, This is just a made up figure by Experian, Equifax and callcredit that has no bearing on credit applications at all ! It's their to give you an idea of how healthy your credit is in general ! But someone with a 999 credit score might be declined for a credit product where as someone with a 500 score would be approved, Never go on their scores, They're meaningless really. Banks and credit institutions score you using their own in house internal scoring methods calculated by the information you provide on the application form and the information they obtain in regards to your current and previous credit account conduct via the CRA's.

3. No idea. I wouldn't worry about those fictional points that have no bearing on anything you'll ever apply for. Once you clear the balance assuming its not late or overdue then you'll get nice green markers showing that you're making on time payments ! Making you a better and more attractive customer to potential lenders.

Thanks. i have already cleared my credit card balance.And so i am expecting the green markers to appear.

jon_boy75

Nobody else reports bounced DDs, only HSBC, and only then accounts opened (possibly) after 2004. I'm not certain on this. It will stay on file for 3 - 6 years, depending on the CRA. However, over time it has less of a negative impact. So in 6 months, it wont matter to most lenders. In 12 months, it wont matter to the vast majority

limitation

easylogic wrote: »

Thanks guys fro your support.I know as much as you guys tell me the scores mean nothing, i just can't get over the fact that i have a very poor credit score.

About HSBC reporting a bounced direct debit, i can recall only 1 bounced direct debit from my phone company, last year, but it was not reported as a missed payment by my phone company since on second trial the direct debit went through.

So how long will this missed payment continue to have an effect on my credit file?Since i have disputed it, is there a chance that HSBC will remove it?

You don't particularly have a 'Bad' credit score just because Experian, Equifax and Call Credit say so.

From my experience of fixing up your credit reports, I had a missed payment with Orange after maintaining my monthly phone contract extremely well with no missed payments, In light of this they removed the missed payment from my credit file after I made a query to them in writing, They removed it as a good will gesture ! although I suspect this only applies to someone who's got a decent couple of years account conduct with the creditor in question.

I doubt one missed payment will have any significant bearing on your credit file, We're all human right ? We all make the odd mistake every now and then.

blacksta

Another credit agency score question - I have seen thousands. Please and please credit agency scores dont mean jack.

rich_the_moneysaver

blacksta wrote: »

Another credit agency score question - I have seen thousands. Please and please credit agency scores dont mean jack.

I certainly would not state that credit reference agency scores mean nothing.

Behavioural Credit Scoring is used by all the Banks & Building Societies- and they use this information on a monthly basis to decide whether to keep/extend/reduce your current facilities with them.

This means you benefit from no credit search within your own credit score- as they are fed the information automatically- plus it also means they are kept very abreast of a sudden change in your circumstances- whether this be positive or negative?

The credit scoring DOES get sent from the CRA`s- and the financial institutions PAY THEM to supply such data- so to say that a CRA credit score doesn`t mean jack- this clearly is untrue- as the CRA`s hold so much information about your behaviour, that the score they produce to you as a consumer could well be then reflected in a similar manner from the lender you apply to...

Remember the score the CRA`s do produce will only be derived from the statistics within your own credit report- so the lender will end up producing their own score-- once they have taken into consideration other information such as salary, job, homeowner, any children etc etc...

Saints2011

rich_the_moneysaver wrote: »

I certainly would not state that credit reference agency scores mean nothing.

Behavioural Credit Scoring is used by all the Banks & Building Societies- and they use this information on a monthly basis to decide whether to keep/extend/reduce your current facilities with them.

This means you benefit from no credit search within your own credit score- as they are fed the information automatically- plus it also means they are kept very abreast of a sudden change in your circumstances- whether this be positive or negative?

The credit scoring DOES get sent from the CRA`s- and the financial institutions PAY THEM to supply such data- so to say that a CRA credit score doesn`t mean jack- this clearly is untrue- as the CRA`s hold so much information about your behaviour, that the score they produce to you as a consumer could well be then reflected in a similar manner from the lender you apply to...

Remember the score the CRA`s do produce will only be derived from the statistics within your own credit report- so the lender will end up producing their own score-- once they have taken into consideration other information such as salary, job, homeowner, any children etc etc...

Hello James Jones I mean rich_the_moneysaver. Have a look at my signature its straight from Experian itself.

Its the raw data in the reports that count which you've touched on.

rich_the_moneysaver

Saints2011 wrote: »

Hello James Jones I mean rich_the_moneysaver. Have a look at my signature its straight from Experian itself.

Its the raw data in the reports that count which you've touched on.

Sorry- when you say raw data- please expand on your explanation? I do understand that the data within the credit report is what lenders themselves use if they are relying on their own credit scoring decision?

I think we need to think about what data is relevant to companies who you may wish to borrow from?

Yes the CRA score is relevant based on you being confident that the CRA sending behavioural scoring to lenders also portays the same relative score/information.

If we go back to when EGG Banking withdrew facilities to their existing customers- this was purely due to CRA information- which potentially meant these consumers could now be a risk?? +

Now at that stage the CRA may have stated directly to the consumer that their rating was `excellent`- however as far as Behavioural Scoring goes- this could mean that they either had too much credit available for that month- or they had a large sale recorded on a card- which put them close to their limit or maybe to a higher balance on their card?
http://news.bbc.co.uk/1/hi/business/7222336.stm

So- if a CRA states that your score has increased- then it is likely that the behavioural score to the lender has also increased.

Tremour-88

rich_the_moneysaver wrote: »

Sorry- when you say raw data- please expand on your explanation? I do understand that the data within the credit report is what lenders themselves use if they are relying on their own credit scoring decision?

All lenders have there own Perfect Customer (made up) and they'll check your report against that to see if you will be profitable or not, they never tell you how they decide or how they do it.

The only thing that matters in your Credit report is make sure its all correct, and try to maintain good accounts, with under 25-50% of your credit limits used up across the board.