Strange score decrease for applying for credit

Cheers

Is my 20 point decrease, according to Experience CreditExpert, for making a credit application meaningless? That would mean people aren't supposed to apply for credit!

DCFC79

Cheers wrote: »

Is my 20 point decrease, according to Experience CreditExpert, for making a credit application meaningless? That would mean people aren't supposed to apply for credit!

Yes that's exactly what it means (not being serious)

Serious now, a pack of digestives is more useful.

Maybe you should read the thread at the top of the Credit File & Ratings board.

engineer_amy

Nobody else sees that score but you, lenders will have their own scoring matrix/criteria when assessing your credit worthiness or application. All the lender will see is the number of recent hard searches on your file. More than 2-3 in a short period may be a negative on that particular lender's criteria.

I have checked my credit files today with Noddle (call credit) and clearscore (equifax) and have seen something interesting. The ONLY change on my credit files between December and now is that i have cleared my MBNA card in full. My Noddle credit score has increased by 15 points, however my clearscore number has DECREASED by 8 points. I know they are completely arbitrary numbers, but its interesting how the different algorithms used by the 2 CRAs treat a debt being paid off in full.

NB - i have plenty of open/active credit accounts and entries, so i dont think the clear score reduction has to do with having fewer credit accounts.