Paid off a chunk of credit yet score went down?

AndyStokes

Hi Guys,

I'm a little confused. I've been steadily paying off my credit card debt and for the last few months have paid in some bigger amounts.

2 months ago I paid in £1000 which has just reflected on my new credit report today. However, from a steadily rising credit score I see today it has suddenly DROPPED by 62 points!

Nothing has changed at all, no searches, no new accounts, no change of circumstances, no missed payments (ever!), nothing! It's exactly the same as my last report except I've paid off another £1000 from my credit card. The limit of the card is £13k and the last update on the report has it showing as just under £4k remaining although I've paid more off in the last 2 months so there is just under £3k remaining now.

I'm using clear score to monitor my rating.

Any idea why?? Or has this happened to other people?

Thanks

Andy

[Deleted User]

The score is entirely irrelevant. It will react negatively to any change.

Ignore it.

Thrugelmir

AndyStokes wrote: »

I'm using clear score to monitor my rating.

I'd find better things to do with your time. Focus on clearing your debts. Everything else will naturally fall into place over time.

sourcrates

AndyStokes wrote: »

Any idea why??

Thanks

Andy

Oh yes, so people panic and buy there "credit improvement products" thats why.

Credit reference agencies are businesses, and just like any other business they have to generate profit, part of which comes from selling credit improvement products, generating credit scores is all a part of that.

AndyStokes

Thrugelmir wrote: »

I'd find better things to do with your time. Focus on clearing your debts. Everything else will naturally fall into place over time.

That's the aim It's just a bit concerning/annoying... I've moved from an "excellent" credit score to just above "good" for no apparent reason... We're looking to get a mortgage early next year so I need it to be in top shape.

[Deleted User]

AndyStokes wrote: »

I need it to be in top shape.

You really, really don't.

You want a good solid credit history with a pattern of responsible credit history.

No magical number on earth will ever make a difference.

AndyStokes

Deleted_User wrote: »

You really, really don't.

You want a good solid credit history with a pattern of responsible credit history.

No magical number on earth will ever make a difference.

If that's that case then I'm in pretty good shape... I was just under the impression the score had to be high to get the better deals hence the shock of seeing the score drop. Thanks

Helvetica_Van_Buren

Heed what you're being told in this thread.

The only person that sees your credit score is you. It's a psychological trick played by credit reference agencies to get you to buy their 'improve' services.

Lenders do not factor your credit score in their decision-making process - they don't even see it. They do 'score' you themselves to decide whether they're going to lend to you and each lender has their own criteria which nobody knows and never will.

With this in mind - ask yourself how it can possibly mean anything? It doesn't.

redux

What day of the month did you pay?

If it was the 2nd or 3rd, try making the next payment on 30th or 31st, so the reported balance on the 1st is better, and see if your score goes up.

That's how meaningless it is.

AndyStokes

Thanks all, much appreciated!

DCFC79

Your score is a figure based (a representative figure) on your credit history but the reference agencies don't lend money/financial institutions.

Check your credit history with the other 2 agencies, then you might see how pointless it is as different systems are used to score us.