Credit Score Drops after getting Credit Card

Pablosammy

glentoran99 wrote: »

No lender even sees your score

I know that, but that doesn't mean it's meaningless. It's still a measure of your credit worthiness, as coarse as it may be.

Pegasus_1981

i'm not looking to take any "needed" credit until February next year so a good 6 months and 0% utilization should see my score rise.

I've not used my overdraft and was looking to remove that, would that look as a negative if i removed it.

Your advise is much appreciated, stumbled across some great input here so many thanks.

[Deleted User]

Keep the overdraft - it shows you've been trusted with it but not needed to use it.

adindas

Pablosammy wrote: »

I know that, but that doesn't mean it's meaningless. It's still a measure of your credit worthiness, as coarse as it may be.

Indeed.
The credit score is still good for people who knows how to use it for their own advantage, people who knows its limitation limitation and most importantly for people who get it for free.

I watch my eye on my credit score each month instead of wasting time go from page to page from account to account. It is a time savers really if you have a credit file of about 50 pages. When my score suddenly drop then that is the time where I will invest time to scrutinize page by page try to find what is going wrong (if any). For this reason I will not consider it useless.

Most people know that the credit score is not seen by lenders. But keep saying useless without detail elaboration what they actually mean with this message, it will confuse people especially newbies.

m4rc

Pablosammy wrote: »

I know that, but that doesn't mean it's meaningless. It's still a measure of your credit worthiness, as coarse as it may be.

It's not though. Many people have a perfect score on one and a terrible score on the other. At one stage Noddle had me down as zero and yet on Experian I was 'Excellent' and around 980. What measure of credit worthiness is that? We regularly see people with a perfect score of 999 unable to get a sub prime card with a £200 limit, and we regularly see people with the lowest scores getting offered cards with high credit limits and excellent APRs and balance transfer offers.

You can believe it all you like, but it's meaningless. If it was a measure of credit worthiness they would all correlate for everyone, that would show they are accurate

The fact is though lenders don't see the score, only you do, they see you credit file. That's all that matters, and like it or not the made up score doesn't have much in common with your credit file.

The reason it's such a useless number is it misses out the really important stuff like income, housing status, marital status, number of dependants, employment status. Someone with a score of 999 living in rented furnished (always worse than unfurnished, indicates you own very little and could leave ve quickly) accommodation, on a zero hour contract with a guaranteed income of £200 a week with 3 kids just isn't a good credit risk.

Conversely so,done with the lowest scores owning their own home, in public sector employment with an income of £60k married with 2 kids would be well worth a risk.

You don't have to believe me, if you like the score and it makes you feel good keep tracking it and feel a warm fuzzy glow as it goes up and a sense of impending doom as it falls for no reason other than its raining on a Tuesday.

adindas

Yes I fully agree. It is meaningless if
- You do not know how to use it for your own advantage.
- You use that score of 999 (say) for justification to get credit, to cheat yourself even if you know you have several defaults, CCJs ...
- You do not know of its limitation e.g the scores does not look into your income, saving, No dependent, spending, and other financial information.
- You do not know how to play with the CRAs for your own advantage.
- You fall into the trap of what CRAs want you to play, get obsessed with it and start paying for their scores. You are not aware that Equifax, Experian are playing the game of making profit from selling their score to you. ...
- You do not want to learn why few the people get score of 999 even with several defaults ....
- You do not understand that people with no credit history at all are likely to get score of 999.

m4rc wrote: »

It's not though. Many people have a perfect score on one and a terrible score on the other. At one stage Noddle had me down as zero and yet on Experian I was 'Excellent' and around 980. What measure of credit worthiness is that? We regularly see people with a perfect score of 999 unable to get a sub prime card with a £200 limit, and we regularly see people with the lowest scores getting offered cards with high credit limits and excellent APRs and balance transfer offers.

You can believe it all you like, but it's meaningless. If it was a measure of credit worthiness they would all correlate for everyone, that would show they are accurate

The fact is though lenders don't see the score, only you do, they see you credit file. That's all that matters, and like it or not the made up score doesn't have much in common with your credit file.

The reason it's such a useless number is it misses out the really important stuff like income, housing status, marital status, number of dependants, employment status. Someone with a score of 999 living in rented furnished (always worse than unfurnished, indicates you own very little and could leave ve quickly) accommodation, on a zero hour contract with a guaranteed income of £200 a week with 3 kids just isn't a good credit risk.

Conversely so,done with the lowest scores owning their own home, in public sector employment with an income of £60k married with 2 kids would be well worth a risk.

You don't have to believe me, if you like the score and it makes you feel good keep tracking it and feel a warm fuzzy glow as it goes up and a sense of impending doom as it falls for no reason other than its raining on a Tuesday.

Thrugelmir

Pegasus_1981 wrote: »

It worked in that sense but it saw my Equifax score drop by 26 points, anyone else noticed a drop in score when they get a new card or product as its showing 100% available balance and on time payment for the first month?

Additional credit lines are a negative as you will be deemed a bigger risk. Nothing positive about opening more credit lines. Just increases the amount you could potentially default on.

m4rc

adindas wrote: »

Yes I fully agree. It is meaningless if
- You do not know how to use it for your own advantage.
- You use that score of 999 (say) for justification to get credit, to cheat yourself even if you know you have several defaults, CCJs ...
- You do not knows its limitation e.g do not look into your income saving and other financial information.
- You do not know how to play with the CRAs for your own advantage.
- You do not understand that Equifax, Experian are playing the game of making profit from selling their score and you want to pay for it ...
- You do not want to learn why few the people get score of 999 even with several defaults ....
- You do not understand that people with no credit history at all are likely to get score of 999.

Sorry I don't get your point. So what isn't meaningless about a made up number? The only thing it does is make people feel good or bad, usually bad, and they come on here in a panic.

You can't 'play with the CRAs' - you can't tweak the data, change the details, it's a credit file.

I give up. I actually don't know why I'm bothered, if you all want to believe it means something you will all be pleased to know my magic gnome in the garden has promised to make your numbers all go up a little bit this month because you've all been good boys and girls.

smallblueplanet

Thrugelmir wrote: »

Additional credit lines are a negative as you will be deemed a bigger risk. Nothing positive about opening more credit lines. Just increases the amount you could potentially default on.

Also removing credit lines are a negative (!!!!!!, a less attractive risk?!) as I saw when my credit score dropped when I paid off a loan early! They really are just for amusement's sake or so you have 'a hook' to hang your hat on.

The_Boss

My credit score dropped after I had a haircut. I'm taking it very personally.