Credit score dropping like a brick

edited 30 November -1 at 1:00AM in Credit File & Ratings
9 replies 820 views
gurindergurinder Forumite
67 Posts
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edited 30 November -1 at 1:00AM in Credit File & Ratings
Hello All,

I registered with Noddle and see my credit health drop from 4/5 to 3/5 to 2/5 respectively in Aug, Sep and Oct.

All of my accounts are in green and I don't see any abnormal activity on my account.

In last 2 months I have -

1. Cancelled a 6 year old credit card I was not using for months.

2. Open a current account in September and

3. Halifax did a initial search on my file to check if I have access to mortgage with them.

I'm very actively looking for a house and will be applying for a mortgage soon. This drop in rating is very worrying .

Looking for open suggestion from the community.

Replies

  • The drop in rating is not worrying as it don't mean anything.
  • Mulder00Mulder00 Forumite
    507 Posts
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    The score is just a number made up by Noddle and has little relevance to applying for a mortgage. The credit requirements for applying for a mortgage is different to applying for a store card is different to applying for a credit card, yet it's all condensed into one figure.

    Just make sure everything is paid on time and nothing is questionable.

    The searches might have thrown off your Noddle score and possibly even closing of a credit card account - that doesn't mean that you will be disadvantaged when applying for a mortgage and you have one less credit card. It's just what Noddle does.

    Also, the scale is too small to be of any significance.
  • TixyTixy Forumite
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    Forget about the score/rating.

    A potential mortgage lender will see your basic credit report and assess that (as well as the other information your give them on your application).
    Is all the information on your credit report correct?
    Ideally don't open any new accounts from now until after your mortgage is completed.

    Do you have any financial associates that appear on your credit file?

    As you are going to be applying for a mortgage - have you obtained copies of your credit reports from each of the 3 agencies?
    A smile enriches those who receive without making poorer those who give
    or "It costs nowt to be nice"
  • gurindergurinder Forumite
    67 Posts
    Tenth Anniversary 10 Posts Name Dropper
    I'm in process of getting report from other 3 credit agencies. I don't see any on Noddle which is questionable.

    "If I hover on the bar showing 2/5 it says less score mean getting a credit will be difficult and costly" that raise a concern for me.
  • TixyTixy Forumite
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    The scores/ratings are a waste of time. There are plenty of people will high scores unable to get consumer credit or mortgages, and people with low scores who can get consumer credit and/or mortgages.

    They are particularly not indicative of a person's likelihood of being accepted for a mortgage.
    A smile enriches those who receive without making poorer those who give
    or "It costs nowt to be nice"
  • Mulder00Mulder00 Forumite
    507 Posts
    Eighth Anniversary 100 Posts
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    gurinder wrote: »
    I'm in process of getting report from other 3 credit agencies. I don't see any on Noddle which is questionable.

    "If I hover on the bar showing 2/5 it says less score mean getting a credit will be difficult and costly" that raise a concern for me.
    It's just a made up number, because as I said before, it doesn't know what type of credit you are applying for. Different types of credit is scored differently and even different lenders score people differently, so it's not as straight-forwarded as one number will make the difference.

    Also remember that these companies use these figures to scare customers into buying products which will either give them more information or claim to be able to help you get a better credit score. It's all just a means of making money.

    Just make sure everything is paid on time, you don't have excessive amounts of credit and you don't have so little credit that nobody can see if you're a good payer.
  • gurinder wrote: »
    I'm in process of getting report from other 3 credit agencies. I don't see any on Noddle which is questionable.

    "If I hover on the bar showing 2/5 it says less score mean getting a credit will be difficult and costly" that raise a concern for me.

    Do us a favour and read the above posts before replying.
  • Mulder00Mulder00 Forumite
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    Hahahhaa, it will be costly because you will end up paying to have your credit score "fixed" when it's not broken...hahahaha.
  • ThrugelmirThrugelmir Forumite
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    gurinder wrote: »
    All of my accounts are in green and I don't see any abnormal activity on my account.

    Owe any money on credit cards? Used your overdraft facility recently? Have you been on the electoral roll for the past 6 years?
    It's not whether you're right or wrong that's important, but how much money you make when you're right and how much you lose when you're wrong." — George Soros
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