Credit score dropped over night

ppoliani

I came across a new programme by Samsung which allows you to replace your handset every 12 months. But that would require that I take a loan from pay4Later and spread it across 24 months. So I filled out the application form but it was declined within two seconds. Initially I thought that there might be some technical issue so I tried it two more times with the same negative result.

I checked my credit score yesterday and it was very high 956 in particular. This means that credit score should not have been the reason for the unsuccessful application. I also have a high salary which means that even that could no be the reason to decline the loan.

Out of curiosity, I checked my credit score today and I realised that the credit score has been dropped by roughly 100 points. I am really confused here; Could that mean that the unsuccessful applications might have caused that decline in the credit score.

Cheers,
Pavlos

Ebe_Scrooge

Your credit score is meaningless. However, 3 searches in quick succession will have left a record on your file, which some lenders will look upon less than favourably.


As to the reason you were rejected - who knows ? Any credit provider will have their own criteria, though there are common things that most will take into consideration - income, existing debt, payment history, affordability, being registered on the electoral roll. If you have a high income, few outstanding debts and a clean payment history then it's probably just something that that particular lender doesn't like. But you shouldn't have made a second ( and third ) application when the first one was declined - it's best to wait a few months now before applying again.

ppoliani

Thank you Ebe.

The thing is that I've been trying all this time to get a high credit score by following everything that is suggested out there. Apparently there is not much transparency around this area; for example why did they reject me that loan and why did that have any effect on a very high credit score.

That doesn't really make any sense to me. Also the sad part is that I don't even need that loan, I could buy that cell phone without going trough all this process. It was just a requirement from Samsung's part.

Anyway, I guess there is not much I can do to appeal for that penalty in the credit score.

spadoosh

ppoliani wrote: »

Thank you Ebe.

The thing is that I've been trying all this time to get a high credit score by following everything that is suggested out there. Apparently there is not much transparency around this area; for example why did they reject me that loan and why did that have any effect on a very high credit score.

That doesn't really make any sense to me. Also the sad part is that I don't even need that loan, I could buy that cell phone without going trough all this process. It was just a requirement from Samsung's part.

Anyway, I guess there is not much I can do to appeal for that penalty in the credit score.

Completely forget the words credit score. It means nothing. They make a decisiosn based on the details within your credit report. The score is the credit reporting agencies way of trying to give a simplified overview (and making abit of extra money) a lender will always look at the details within your file.

Are you on the electoral register?
Are there any late payments/defaults/ccjs attached to your credit report (again ignore the number and pay attention to all the different associations youve had).
Are you financially tied to someone with a bad credit history?

Lots of reasons why you mightve been declined, none what so ever are to do with your credit 'score'.

ppoliani

Thank you all for your answers. That was helpful indeed.

I will register with a service that can show me my credit report. I am curious, what might have been the reason. There might be something that I have missed, probably.

Thank you again.

Doctor_Duke

I would check Noodle (Callcredit) it's free, ClearScore (Equifax) also free, and Experian the biggest but with that agency you might need to sign up to the free trial and don't forget to cancel it! This means you've covered all three Credit Reference Agencies.