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What your credit score really means

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  • How can credit scores vary so greatly?  Ok, according to Experian, my credit score is excellent, but on clear score and credit karma it is just about fair.  I don’t understand?
  • MovingForwards
    MovingForwards Posts: 17,149 Forumite
    10,000 Posts Seventh Anniversary Name Dropper Photogenic
    How can credit scores vary so greatly?  Ok, according to Experian, my credit score is excellent, but on clear score and credit karma it is just about fair.  I don’t understand?
    They all have their own ways of generating the scores and ratings. Also not all credit companies / utilise report to all the CRAs. Lastly, it's the credit history you need to monitor to make sure everything is paid on time.
    Mortgage started 2020, aiming to clear 31/12/2029.
  • Carmen12
    Carmen12 Posts: 24 Forumite
    10 Posts Name Dropper
    hello everybody 
    i just have a question lets said if a buy with my credit card today when this will be reflected in my credit score ?
    the same day i buy something or next day? 
    sorry but im new in this .. 
  • Ebe_Scrooge
    Ebe_Scrooge Posts: 7,320 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    Carmen12 said:
    hello everybody 
    i just have a question lets said if a buy with my credit card today when this will be reflected in my credit score ?
    the same day i buy something or next day? 
    sorry but im new in this .. 
    Have you read through this thread?  Have you taken a look at the numerous other threads on this board?  Has it sunk in yet that your credit score means nothing?  And in any case, individual transactions are not reported to the CRA.  What happens is, you buy something on your card, the statement gets produced in due course, you pay what you owe (or not, as the case may be!).  The card company reports to the CRA - usually monthly, but not always - to say "Carmen's statement had £100 owing as of 29th March, she paid in full/partially/not at all, on time/late".  So no, an individual transaction is not reported to the CRA immediately, and even the normal cycle of reporting is not instant, it depends on the lenders reporting cycle.  Like I say, commonly it's a monthly cycle (maybe the 15th of the month they submit their reports), but not always.
    You score, however, probably will change daily, depending upon how many butterflies have flapped their wings in Outer Mongolia this morning, and whether it's raining, snowing, foggy or sunny in New York.
    On a serious (and perhaps slightly more helpful) note - what matters is that you pay your statement off in full, after the statement is received but before the "payment due" date.  It's this fact that is reported to the CRA, and this is what counts.  It will not get reported the moment you make your payment, but it will get reported and logged on your credit history.


  • Jet32
    Jet32 Posts: 4 Newbie
    First Post
    Hi I’m looking for advice. I’m signed up to ClearScore so I get a monthly credit rating. In January I opened a joint bank account with some one who has a bad credit score. Our account has a positive balance and no overdraft was approved (so no debt) but my credit score has dropped over 80 points since I opened the account?!?! Does anyone know why?? Please help I want to apply for a mortgage next year but won’t be able to if my score keeps dropping!! 
  • CRISPIANNE3
    CRISPIANNE3 Posts: 1,476 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    I was riding high with my score with Experian and then I applied for a VIrgin cc and the score dropped from 940 to 860.  I know it is not important but surprised how much it dropped. However I was accepted for the card.
  • I was riding high with my score with Experian and then I applied for a VIrgin cc and the score dropped from 940 to 860.  I know it is not important but surprised how much it dropped. However I was accepted for the card.
    Don't be surprised, the numbers mean nothing at all
  • I applied for a loan today to consolidate my debt as well as a little extra to buy a car. I was declined by both my bank and another. Yet my Experian report says I'm Excellent and my transunion report gives me a good at 623. 
    I do not understand the reasoning behind their decision. I've never had a bad record. 
    Can someone please clarify this ? And would it be better to do a joint app rather than a single one?
  • MovingForwards
    MovingForwards Posts: 17,149 Forumite
    10,000 Posts Seventh Anniversary Name Dropper Photogenic
    Lovstad said:
    I applied for a loan today to consolidate my debt as well as a little extra to buy a car. I was declined by both my bank and another. Yet my Experian report says I'm Excellent and my transunion report gives me a good at 623. 
    I do not understand the reasoning behind their decision. I've never had a bad record. 
    Can someone please clarify this ? And would it be better to do a joint app rather than a single one?

    Your credit scores and rating are not seen or used by lenders in the UK, it's the credit history they see and when when assessing applications.

    Also, with consolidation loans they assess you based on the debt amount AND the loan amount, as some people do not repay the original debt or repay it then run it back up again. 

    Head to the debt free wannabe boards for help and ideas to clear your debts.
    Mortgage started 2020, aiming to clear 31/12/2029.
  • hardquest
    hardquest Posts: 11 Forumite
    Name Dropper First Post Photogenic
    I had couple of defaults more than 3 years ago, will that will have any affect on getting one? Thanks
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