Credit score drop because if credit card?

llcooljayne1

Hi,

So I'm a little confused as to why my credit score has dropped. I checked it a year ago and it was a great 998 on Experian. I had three credit cards almost maxed and a £20000 loan. Since then I have paid the loan off, and got rid of my HSBC credit card as I never used it. I just checked on noddle as I was thinking about getting a loan to pay off my credit card balances and it's gone to 587.

Could this be because although I have a lower amount of debt, because I got rid of a card with no balance its gone down?

I also looked on here to see if I could get a balance transfer card and it said no, so confused. Thought I was doing the right thing by getting rid of that HSBC card. I'm gonna be peed off if it affects my chances of getting a mortgage 👿

19lottie82

Your "score" doesn't exist. No one (I.e. Potential lenders) sees it but you.
It's simply a marketing trick to encourage you to pay monthly subscription fees for credit reports. I wouldn't waste any time worrying about it.

cakeforbrains

Credit 'scores' aren't ever seen by lenders so i wouldn't worry about them. What matters is your credit history.

Having a long-standing account with any given creditor is positive for your file, as is using a low percentage of your available revolving credit (cards). When you closed the HSBC card did it significantly reduce your available credit? (ie, did it have the largest limit?) and/or was it your oldest account?

cakeforbrains

You also mentioned on your other thread that you've created a financial association with somebody with a CCJ. That won't have helped, depending on how old it is.

Credit referencing agencies can't see your salary or your working hours.

llcooljayne1

It wasn't the largest one but it did have a £2500 limit on it. My two remaining credit cards are maxed out so I'm assuming this is my issue. So I guess that I try and get these down to help my file look better.

llcooljayne1

Yes sorry about other thread I thought this one didn't post so I'll delete that one!

Anthorn

Mine on Noddle has gone down considerably too for no apparent reason. In 10 days when the new report comes out I'm fully expecting the rating to be 1/5. Maybe it's just gone wacky. But I just find it mildly entertaining, nothing more. I have an ambition now to get an Amex card when the rating is 1/5 or even 0/5 lol


I think CRAs are just doctoring the scores to make them lower in order to sell services to improve it.

llcooljayne1

It's so annoying, everyone goes on about credit score so you worry about it and apparently it means sod all!

So if my other halves CCJ is affecting my credit file when his CCJ comes off I should go back to having a good rating?

cakeforbrains

auntloo wrote: »

It's so annoying, everyone goes on about credit score so you worry about it and apparently it means sod all!

So if my other halves CCJ is affecting my credit file when his CCJ comes off I should go back to having a good rating?

I should think it will help, but it also depends on the rest of his file and on the rest of your file.

As you say, you've maxed out your available credit so you need to address this. That will help your credit file and it will help your general finances so it's win, win.

Malmo

auntloo wrote: »

It's so annoying, everyone goes on about credit score so you worry about it and apparently it means sod all!

It's important to learn the distinction between a consumer score provided by Credit Reference Agencies like Experian, Equifax and Callcredit and credit scores calculated internally by lenders. In the UK, no individual has a central or universal "score" that institutions can have access to and use, unlike the USA where this is the case.

In the UK, consumer scores are a marketing gimmick that serve no useful purpose. However, you can be credit scored by lenders based on their own algorithms that satisfy their internal customer profiling requirements. This has no relation to the scores from Experian, Equifax and Callcredit.

Candyapple

Don't forget that since you are now financially linked with your partner who has a CCJ, you will need to consult a mortgage broker in order to see if they can find you a lender who will lend to you under these circumstances. You will also need to have next to no debt and a higher than average deposit to lesser the effects of the CCJ.