Credit score dropping

tiredmummyofboys

My credit score has dropped 60+ points from last month despite paying off my credit card in full (as recommended by Martin). It was the only debt I had. My credit report tells me I've made applications for credit in the last 6 months (I haven't!) So I paid £2 for a credit report, but it really hasn't explained anything. Nothing has changed financially for me personally and the only thing I can think of that might be affecting my score is my husband applying for and receiving a new credit card. Any help appreciated!

Ben8282

Has the full repayment been reflected on your credit report yet? If it was only last month you repaid it is a bit quick for the report to have updated with the new 0 balance already.
When you say paid off in full what to you mean exactly in terms of payment/balance history prior to paying it off in full?
You say the credit report tells you that you have made applications for credit. If this is so, it will also show you which lender made the searches. Only you know if you have applied to these lenders. I assume these were full hard application searches? If you did not make these applications then inform the lenders who carried out the searches immediately.
Is your husband show as a Financial Associate. If no, then his applications can have no effect on you. If yes, then his applications may have an effect on you and it is possible the searches on your report are related to HIS credit applications. Check with him who he has applied to and see if the searches were carried out by those lenders.

[Deleted User]

It's dropped because you cleared the card.

Credit scores react negatively to change, which is why they are meaningless and can be ignored.

Fireflyaway

Although I still don't agree that scores are totally meaningless, I dont think too much attention should be paid to them. I have seen mine go up and go down for no reason I can think of. Have you applied for car insurance for example? I stupidly didn't realise if you pay that monthly it counts as a credit agreement. If you are with clear score it tells you the reason for the change is that where you checked? Was your card balance high before you paid it off? I learned that too. Don't get too close to the limit.

PixelPound

Maybe they aren't "meaningless", but the fact they react negatively to what many would perceive as should be a positive, can be frustrating. Clearing your debts is good, financially, but not necessarily for credit ratings. Using price comparison sites when its time to renew insurance is good financially, but searches will show up on your credit file.

To me the score is about understanding what has changed, what the score is and the factor that its changed by are relatively useless (unless you have some sort of obsession to make it perfect). It's about asking "does any change reflect my activity" and whether anything unexpected is on there. Don't obsess about trying to improve or manage your score, if you are aiming to take out some form of credit in future, don't obsess about improving a score but rather what your report contains and whether there is anything on your file you can change/improve before you apply (this can include time, e.g. simply waiting for something old to fall off your report)

tiredmummyofboys

Thanks for all your replies.
I rarely use my credit card, in fact, I only got a card in June and have used it twice. I cleared the balance on both occasions.
My credit report tells me I applied for credit from the AA - I didn't! My car insurance isn't due until end of next month, and I know I definitely haven't applied for any other kind of finance.
Husband's rating has fallen too - by approx 30 points. I can only assume my score has dropped because he got a new credit card. Slightly annoyed!

PixelPound

It is only effected by his if you have financial associations, e.g. mortgage, bills etc.

As for the AA, are you a member of the AA and agreed to pay monthly by DD rather than in full?

YorkshireBoy

nic_c wrote: »

Using price comparison sites when its time to renew insurance is good financially, but searches will show up on your credit file.

But those searches are of the unrecorded type, so won't be seen by any other lenders. Therefore they shouldn't be taken into account by the CRAs when providing a rating/score.

YorkshireBoy

tiredmummyofboys wrote: »

My credit report tells me I applied for credit from the AA - I didn't!

Does it simply say "AA"?...or AA Financial Services, AA Motoring Services, etc, ie more detail?

I can only assume my score has dropped because he got a new credit card. Slightly annoyed!

If you have a financial association with him (you've been asked, but haven't answered), he was warned they would search your credit files when he applied. Out of interest, which card did he apply for?

If you haven't applied personally for credit, then the search must be of the unrecorded type (as financial associate searches are). This means no-one else can see the search but yourself and the CRA. So no damage done...in the 'real world'!

On the subject of buying a £2 report, why did you do this? Maybe because you only get a 2-monthly score from, eg, Barclaycard? If you're getting the score from the likes of Noddle or Clearscore, then the £2 report won't show any more detail than the free report you get from them each month will it?

tiredmummyofboys

Yes, we have a mortgage together.
The AA membership was for breakdown cover and was paid in 1 go.