O2 closed old account and opened new account for upgrade...

Skiff85

So every 6 months or so I get a months membership with Experian to see how my credit file is looking, I was quite irresponsible when I was younger so I am trying to repair my score. Anyway, I had a look today and my score has dropped 131 points and its all because of some weird thing o2 have done when I renewed my contract.
So I have had my contract with O2 for 7+ years now, and this year, when it was up for renewal, as I do every year, I looked at what they were offering me and saw there was another website offering an better contract with O2, 30% cheaper, so I called O2 and asked if they could match it for me, they said they couldn't (which I thought was weird as it was with them so how can they not match their own price?). Anyway, I asked if I could take this contract and they said it would not cause a problem. I took the contract and haven't thought anything of it since, until now, now it is showing in my credit file as 2 negative factors as it is new credit and it was applied for in the last 6 months.

So I have gone from a 7 year account, never missed a payment, to a completely new credit account which does not have any history. Can I ask them to amend this? I did the exact same thing when my last contract expired, I went from O2 direct to O2 through carphone warehouse and it did not end my contract then.

Thanks in advance, sorry for the wall of text

nidO

And here is a primo example of why the scores the CRA's sell you are worthless.

You have "new credit" in the form of a new phone contract but it's a phone contract, your file is correctly showing that you only have one (as the old one has stopped) and the old one is still shown on your file for the next 6 years so potential lenders can still perfectly well see you've had a phone contract for a while, the fact that your old one ceased and a new one started matters not one tiny jot.

xxxnardixxx

Exact same thing happen to me but with a credit card. I had a credit card for over 10 years and i asked bank to increase limit. Bank advised to close old credit card account and open new one. At the time i was watching credit score cos i wanted to apply for mortgage. Soon as old credit card got closed i lost alot of points of my score. I called bank but they couldnt do anything about it.

Candyapple

xxxnardixxx wrote: »

Exact same thing happen to me but with a credit card. I had a credit card for over 10 years and i asked bank to increase limit. Bank advised to close old credit card account and open new one. At the time i was watching credit score cos i wanted to apply for mortgage. Soon as old credit card got closed i lost alot of points of my score. I called bank but they couldnt do anything about it.

Sounds like the bank didn't listen to your request and were looking to up their target figures for new sales and got you to take out a new card with them instead of increasing your existing limit.

Credit "scores" are pointless, ignore them.

Skiff85

You say that they are pointless but finance companies seem to take them seriously enough or am I mistaken?

abby1234519

Skiff85 wrote: »

You say that they are pointless but finance companies seem to take them seriously enough or am I mistaken?

You are mistaken. Every financial institution has a different way of deciding if they will give you credit - it isn't based on a score made up by a credit agency

gunsandbanjos

Skiff85 wrote: »

You say that they are pointless but finance companies seem to take them seriously enough or am I mistaken?

Finance companies do not see this magic score that experian or whoever shows you.