Experian: Opened many new credit accounts

dutchcloggie

Hi,

I just checked my Experian credit report and it gives me only a Fair credit score. I have no idea why but they say the only negative factor is that I have taken out more than 3 credit accounts in the past 6 months.

When I look at what these are, it is because I switched electricity provider (it counts gas and electricity as 2 separate credit agreements) and because I changed mobile phone provider (after being with the previous one for 10+ years). My wife and I have switched bank accounts last year and got credit cards with the new accounts. All these things went through without problems so I have no idea why this counts as a negative against my credit rating?

I know applying for credit is seen as bad but I had no idea that something as simple as switching bank accounts and utilities providers can actually count against you!

Dutchcloggie

rizla_king

Experian credit score is a complete load of balls anyway. Ignore its stupid conclusions. Real lenders use more intelligent scoring models.

GingerBob_3

rizla_king wrote: »

Experian credit score is a complete load of balls anyway. Ignore its stupid conclusions. Real lenders use more intelligent scoring models.

I wouldn't bet on it.

Experian_company_representative

Hi Dutchcloggie.

Lenders like to see established accounts ona report, so that they can be sure that you are able to manage you currentfinancial commitments.

While there are new accounts on the reportthey may be more reluctant to offer further credit as they can be concerned youcould become over-committed, even if these accounts are utility or currentaccounts.

As the recently opened accounts become moreestablished then they would be seen as a positive factor on your report.

Our Ask James page goes over this in moredetail here.

Kind Regards

Neil