What your credit score really means

Chrisblue1962

No such thing as a "credit score" as NOBODY ELSE sees your score. the numbers generated are as "real" as pixie dust or unicorns !

phillw

Chrisblue1962 wrote: »

No such thing as a "credit score" as NOBODY ELSE sees your score. the numbers generated are as "real" as pixie dust or unicorns !

They are a reflection of your credit history though.

Or do you treat that as imaginary as well?

jamesd

Wrighj92 wrote: »

I've made a large payment on my credit card and now my Experian credit score has dropped over 100 points...even though I've paid off the full balance in plenty of time! Never had a late payment on my credit card so I'm really surprised that my score has dropped from the upper 900s to the 700s, will it just sort itself out and go back up to the same level when it recognises that I have paid off the balance? We'll be looking at mortgages for our first house soon so this has got me slightly worried!

It won't affect your mortgage but I'll explain why.

Two of the things that can reduce credit worthiness and scores are:

1. an increase in debt, reducing overall affordability.
2. the chance of out of control spending.

At about the day of your statement the credit reference agencies are told:

a. balance
b. new spending total
c. repayments total

Your first statement will show the purchase but not the repayment unless you paid before the statement.

Your next statement will show the payment and reduced balance.

There might be a small lingering effect for a few months but this won't matter to a mortgage application.

Don't apply for new credit before the mortgage and purchase are complete, including buy now, pay later. Credit checks in the week before the money is handed over happen sometimes. One minute after legal completion is fine.

eskbanker

jamesd wrote: »

There might be a small lingering effect for a few moths

Would that be the butterfly effect?

Angie_B._Wilkinson

wish I'd known all this yesterday as I've been bullied into paying for our credit scores even though both myself and my husbands credit reports (which we paid £2 each for) were perfect! We are hoping to buy our flat under the Bight to buy and are taking advice from the RTB Co-operative, for a month we've been at loggerheads over this damn credit score,

jamesd

Angie, there's no universally perfect credit record but what tends to look good is having and routinely using different types of credit. Mobile phone buy and maybe one other standard borrowing deal. A couple or three credit cards, regularly used but not routinely to more than 30% of the limit on each card. No late or missed payments and the longer you've had the credit product, the better.

With a couple, one could have the gas and electricity bills, the other the phone and internet. That way both can build up some history.

It's about creating record which demonstrates that you have been a regular and responsible user of credit.

Don't apply for new credit if a mortgage application is a few months away.

sourcrates

superboobs wrote: »

Well, how interesting...wish I'd known all this yesterday as I've been bullied into paying for our credit scores even though both myself and my husbands credit reports (which we paid £2 each for) were perfect! We are hoping to buy our flat under the Bight to buy and are taking advice from the RTB Co-operative, for a month we've been at loggerheads over this damn credit score,

Angie_B._Wilkinson wrote: »

wish I'd known all this yesterday as I've been bullied into paying for our credit scores even though both myself and my husbands credit reports (which we paid £2 each for) were perfect! We are hoping to buy our flat under the Bight to buy and are taking advice from the RTB Co-operative, for a month we've been at loggerheads over this damn credit score,

Not just you it seems........

Jumblebumble

phillw wrote: »

They are a reflection of your credit history though.

Or do you treat that as imaginary as well?

I think they are rubbish and can be ignored
MSE Credit club gives me 999 out of 999 but claims that I have very weak affordability probably owing to the fact that I have an offset mortgage with only owing the bank around 25% of the maximum but the bank report that I owe the full amount
really amusingly I have a second small overdraft facility on the offset mortgage account
MSE club have confused these two so under % used it says 315282%

Clearscore only give me a score of 568 out of 700

MancMatt77

Just had my monthly "Your credit score has been updated" email from Credit Club and wondered how I can check all my previous scores? Sorry if I'm being stupid but I can't see anywhere obvious on the site which houses all your historical info. I'm obviously keen to know if the score has gone up or down on previous month's as I've been squeaky clean for ages now but I'm still sitting in the "Poor" band.

Cheers in advance.👍

[Deleted User]

You can't, but there's no point in any case.  The scores don't reflect your credit worthiness and any changes are incidental.

Just focus on improving how your accounts and files look now.

If you have any concerns over what appears on your files, just post them here and someone will help explain your best actions.