Why has my credit rating gone down?!

amylondon

Hi all

I had a shocking credit rating about a year ago, so I got 4 direct debits set up to my name and a small credit card. I've never missed a payment (well above the minimum payment) and haven't missed any bill payments either.

This month I needed to use my credit card (I usually only use it to top up travel card), so it's 90% used, but I will be paying off half of the total amount.

I got my credit score up to above the UK average and I just got notified by Equifax that it's dropped back down to poor! Is this because I've used 90% of my credit? It's only a £200 limit. This goes up to £800 on 30th March so I'll be using less % but I can't understand why as I pay it off every month this is the case?

Any advice welcome.

Thanks

fermi

Lenders do not see or have access to any credit score calculated by the CRAs. They always calculate their own based on their own criteria.

Please read: http://www.moneysavingexpert.com/loans/what-credit-scores-mean

Reading too much into what each CRA 'thinks' is a waste of time, as is paying for their scores.

robber2

it hasnt !!!!

The made up number that Equifax con you into paying to see might have changed but as they dont lend money its meaningless

Darksparkle

Id focus on what your report says are the positives and negatives are rather than the score.

Ben8282

Just pay off the £180 and your score will go back up. How is it you can only afford to repay £90 this month? Can't you pay the whole £180 to avoid interest and use the card for £90 worth of purchases?
As to why your score has gone down ... would YOU lend money to somebody who cannot afford to repay £180 all at once on a credit card?

Superscrooge

Try to get into the habit of paying off your credit card in full each month. Not only will this save you money on interest payments, but your credit score will improve.

Your credit history is what is important. Don't worry about what score you have been given. Lenders never see your score.

LB2306

I had to use my credit card when struggling with university fees. My credit rating is poor despite never missing a payment on anything. Now trying to pay it off as seems this is the only way my rating will improve. Very frustrating as like you its not even a huge amount.

27col

Why do you think that your "credit score" matters in any way. It doesn't.
The only thing you should be concerned about is your credit record/history.
Every time I see that ludicrous TV advert about credit scores, it infuriates me. All those financial illiterates are being conned into paying for something that has no bearing whatever on their ability to obtain credit.

20aday

27col wrote: »

Why do you think that your "credit score" matters in any way. It doesn't.
The only thing you should be concerned about is your credit record/history.
Every time I see that ludicrous TV advert about credit scores, it infuriates me. All those financial illiterates are being conned into paying for something that has no bearing whatever on their ability to obtain credit.

Perhaps I've had my head buried in the sand but part of me wishes Martin Lewis would be far more vocal about people paying for these meaningless 'scores'.

Time and time again there are threads posted on here from people concerned about a generated number fluctuating over the place when in actual fact it's account conduct/history that bears more relevance of whether they'll be granted credit (or not).

Helvetica_Van_Buren

LB2306 wrote: »

I had to use my credit card when struggling with university fees. My credit rating is poor despite never missing a payment on anything. Now trying to pay it off as seems this is the only way my rating will improve. Very frustrating as like you its not even a huge amount.

Why don't you read things and/or listen? Credit ratings are irrelevant - only you and the credit reference agency see it. Whether it goes up or down really has no effect on anything.