Credit Score Dropping! Why?

Tink_00

Well they quoted my credit score as the precise reason for declining my application- after they had actually approved my application I received a call 2 days later, just before the account was about to be opened, to say that my credit score had come back and they weren't happy with it- they quoted "adverse personal information"- and said that until I could get 3 Mobile to remove this default, (even though it was for £28 for a disputed amount since I had cancelled my contract- after the expiration of the 12 month contract period I had signed up to- and they nevertheless continued to charge me) I shouldn't reapply for a bank account! So that is entirely based on 1 piece of information and not the rest of my credit history which has been solid. I don't understand.

bsms1147

Tink_00 wrote: »

Well they quoted my credit score as the precise reason for declining my application- after they had actually approved my application I received a call 2 days later, just before the account was about to be opened, to say that my credit score had come back and they weren't happy with it- they quoted "adverse personal information"- and said that until I could get 3 Mobile to remove this default, (even though it was for £28 for a disputed amount since I had cancelled my contract- after the expiration of the 12 month contract period I had signed up to- and they nevertheless continued to charge me) I shouldn't reapply for a bank account! So that is entirely based on 1 piece of information and not the rest of my credit history which has been solid. I don't understand.

Did they actually use the phrase 'credit score'..?

Dobbibill

Tink_00 wrote: »

Well they quoted my credit score as the precise reason for declining my application

They will score you internally against their own criteria. They do NOT take a score from the CRA's.

they quoted "adverse personal information"- and said that until I could get 3 Mobile to remove this default

This will be the history that is referred to by PP's. This makes up part of your history and this particular part they are not happy with in line with their criteria.

HTH

[Deleted User]

Tink_00 wrote: »

I don't understand.

Yes. I get that.

But all you need to know is that the CRA score means about 240% less than absolutely nothing. No one sees it but you.

Ebe_Scrooge

Dobbibill wrote: »

They will score you internally against their own criteria. They do NOT take a score from the CRA's.



This will be the history that is referred to by PP's. This makes up part of your history and this particular part they are not happy with in line with their criteria.

HTH

This.

I suspect this is where a lot of the confusion arises from. Any lender will have their own criteria - your age, your income, your home ownership status, your history of debt repayment, whatever they choose. They use Credit Reference Agencies to see your history of repayment and management of debts. They crunch this all up in their computer systems, and come out with their "score" for you.

Now, their own "score" is perfectly valid - it's based on their particular lending criteria. What they don't see is the "score" invented by the CRA's. How can this be meaningful ? The Bank of Fred might favour pensioners with no debts and only a pension as income, the Bank of Bob might favour young high-flyers in the City with an income of more than £100K, irrespective of existing debt. That's their choice. They put your details into their systems, and "computer says no". Or "Yes". When they refer to your "score", they mean your rating according to their own internal scoring system, nothing to with the CRA's "score".

brokebuthappy

d70cw6 wrote: »

Wait: your credit score is dropping. bombs are dropping over Syria.

Coincidence?!

Beyond crass

MABLE

I remember years ago I was never being offered any balance transfer on my Barclaycard. I phoned and asked why and the advisor said their internal score was a long way from the score from the credit reference agency. He was saying the agency score was low. Even now I do not know what that was all about.

That was then but now get loads of offers.

somethingcorporate

The use of consistent terminology implies the use of a consistent methodology which is obviously complete rubbish.

Ignore the 'score' any institution gives you that isn't lending the money.

Grumpy_Shunter

d70cw6 wrote: »

Wait: your credit score is dropping. bombs are dropping over Syria.

Coincidence?!

Very puerile, but thanks for the effort.

To everyone else - thank you. Very informative and helpful.

RG2015

Hi Grumpy Shunter,

Like you I have Clearscore and Noddle but no specific planned credit requirements. My interest is purely academic.

The one thing that concerns me is identity theft which may be evidenced by a credit search that I had not initiated. One thing that I have observed is that Clearscore and Noddle are very slow at recording information. I have opened new bank accounts and a new credit card account to get cashback etc but these took two or three months to appear on my credit report,

Your next report may shed some light on the changes observed. I too have had my "score" fall but I am not losing any sleep and certainly am not tempted to pay any money to satisfy my curiosity.