Why is my credit rating going down after completing a DMP?

sharrym

Hi,

We completed a DMP in March, even paid it off a couple of months early. At the time I checked my credit rating with Noddle and it was showing as 3/5, over the last few months it's gone down so that this month it's now 1/5! Surely it should be getting better not worse?

As many sites have advised, I got a credit card to build up a responsible credit history. I pay it by DD in full each month.

All the debts on my DMP are shown as settled or satisfied. I can't see anything else that would cause this. I can't understand it... has anyone else experienced this?

I know that the credit score thing is a bit arbitrary and pointless to a great extent, but I am concerned that this could be a problem when we try to get a mortgage in a few years. I'm trying to keep a handle on my credit history etc.

Thanks.

Tixy

Hi
Don't worry about the ratings that the credit reference agencies give you/ Nobody sees those except for you.

Any potential lender will assess the raw data on your file, and if the old/defaulted debts are getting older and are all paid off then in time your file will look better to a potential lender.

Is the credit card the only open credit entry on your credit file? How long have you had that card open?

sharrym

Hi Tixy,

Thanks for the quick reply. I've had the card three month now, paid 2 payments and yes, it's the only credit entry I have other than a joint bank account which is okay as we're now in control of our money.

DCFC79

You can worry all you like but you will worrying over nothing, as Tixy has said lenders don't see your rating.

sharrym

I'm more concerned about the reason for the rating going down. Whether that will have any effect on any info lenders might see... it's not logical and I wondered if there's something going on that Noddle, being free, doesn't show.

Tixy

Noddle's rating is based just on the information noddle (callcredit) hold. The same information you see when you look at your credit file with them.

A potential lender searching your callcredit file will see/assess the most up to date data callcredit hold. They won't see the rating and any credit account information/search information is shown anonymised.

kpearsoncj

Ur credit rating might have dropped as it takes a few weeks / months for some items to show on ur credit file when i got a credit card it did the same mine is on 3 but changed my card and it went down to 1 for a month

sharrym

Thanks all.