My credit score dropped from 2 to 1 for no reason

Jedb

Hi, I'm 45 years old I have never been in debt. That's because I have never borrowed money.;)

But last year I tried to get satellite TV but was rejected because of my low credit rating. First I had heard of it.

So I joined Noddle and discovered my credit score was 1/5. For someone who had never had any debt I was shocked. Here I was bunched in among all those bad payers and people with county court judgements against them.

So I took some advice I was told because I had never borrowed money and paid it back, I was treated as someone who was bad at handling money, so that's why my credit score was 1/5.

So anyway, I took more advice and was advised to get a credit card out. I did this, and the interest was something like 47% but it didn't bother me because I paid all my purchases back when the money was due that month. The interest rate dropped to £37% and the credit limit was increased from £250 to £1,000.

I also got another credit card and was given £500 credit limit on that. All money borrowed is paid back each month.

So then I looked at my credit record and it said my rating had risen to 2/5. I was happy, so maybe I could get my satellite TV.:D Unfortunately I was rejected again because my credit rating has dropped to 1/5 again.

Nothing has changed financially. I don't owe any money. All that effort for nothing.

Can someone explain why my rating fell? Thanks.

[Deleted User]

It fell because it's fictitious and doesn't reflect the likelihood of anyone lending you money.

Check the information on your files (all three) to ensure everything is correct - debts, financial associates, electoral roll, addresses etc.

Other than that, all you need is time.

Jedb

Oh thank you very much for that. All other information is correct. It says I have no county court judgements against me, not in debt, etc. Good standing with Gas, electric, my banks, etc. But still a rating of 1/5.

Why do you say it's fictitious? Sorry to be blind of these matters.

[Deleted User]

The numbers aren't seen or used by lenders. They're just a marketing gimmick used by the CRAs. It's entirely possible for bankrupts to have maximum scores.

Lenders only look at your data and make their own decisions based on that, as well as other things that CRAs don't know - eg your income, purpose of loan and so on.

Pixie5740

For get the scores, lenders don't use them. It's explained in the sticky at the top of this board.

No credit history means you're an unknown quantity when it comes to credit. All lenders and other credit providers are looking for are patterns on how you've handled credit in the past but you have nothing to build a pattern from.

DCFC79

Jedb wrote: »

But last year I tried to get satellite TV but was rejected because of my low credit rating. First I had heard of it.

A satellite TV, you mean a TV right, who did you go to buy the TV from ? Or did you try to get Sky TV ?

Whoever said it was due to your credit rating was lying as you now know only you can see the rating.

Jedb wrote: »

So I joined Noddle and discovered my credit score was 1/5. For someone who had never had any debt I was shocked. Here I was bunched in among all those bad payers and people with county court judgements against them.

Who ever rejected you may not even use Noddle, theres 2 other reference agencies.

Jedb wrote: »

So then I looked at my credit record and it said my rating had risen to 2/5. I was happy, so maybe I could get my satellite TV.:D Unfortunately I was rejected again because my credit rating has dropped to 1/5 again.

You now know the scores are meaningless.

Jedb

Thanks for your replies. You've eased my mind. Thanks again.

Candyapple

Are you on the electoral roll?

If yes, does it show on Noddle?

Don't forget to sign up with Clearscore (Equifax) which is free also and pay £2 to Experian to obtain copy of your report; that way you will have access to all 3 of your credit reports so you have the complete picture.

How long have you held those 2 credit cards for? Are they both showing on your reports?

What about your bank account(s)? Mobile phone contract?

Are you actually clearing both the cards balances before a statement has been produced? If yes, it will be reported to the CRAs as though you are not using the card. Set up a DD to clear the full balance every month and carry on using the cards as you are.

I would wait 6 months for some more green zeroes to be added and then perhaps try and apply for Sky again.