Drop in Credit Rating Due to Credit Card Provider Error

keithoflynn

Hi,

New to this forum. I would much appreciate some help on a matter I am having with my credit rating due to an error by my credit card provider.

I got my first credit card with Barclays last November for the sole purpose of helping my credit score. I set up my direct debit and activated my card by withdrawing £20 from an ATM. I then spent £210 on the card in December. I logged into my online Barclays account mid December and it said my card had been suspended due to late payment on my balance. I was shocked as i had set up a direct debit so just paid off the outstanding balance of £233.00 straight away.
A few days later i received a letter from Barclays saying it was their error that my direct debit was not set up and this "will not affect my credit rating".

My latest credit score shows a decrease in credit rating I contacted noddle my provider and they said it was because of the outstanding balance of £23.00 in November and the £210.00 in December that i have seen a decrease.

Has anyone any advice for me how i can get this rating back up? I have a letter from Barclays admitting it was their fault that payment was not taken out, where can i go from here?

I have put in a dispute with this so wont hear back till 28 days.

It is certainly not the end of the world but it was not my fault and i do not want to be punished for it.

Any advice would be greatly appreciated.

Thanks

[Deleted User]

Presumably Barclaycard have said they will remove the late payment marker.

Make sure this happens, but then just ignore the score. It probably won't move as you want it to, but this is because it's meaningless and doesn't reflect how lenders will view you.

Or anything else, for that matter.

DCFC79

As been mentioned many a time the credit score or rating means diddly squat, nothing, nadda.

What is exactly on your history as this is what lenders, banks see.

What do Experian and Clearscore have on your history ?

keithoflynn

Barclays have said that they never reported it as late payment. So my guess is Noddle and Experian have taken a look at the November and December statements which have the outstanding balances on them and their automatic algorithms have deducted my credit rating.

[Deleted User]

That you means you can quite happily ignore the issue.

keithoflynn

As been mentioned many a time the credit score or rating means diddly squat, nothing, nadda.

What is exactly on your history as this is what lenders, banks see.

What do Experian and Clearscore have on your history ?

I did default on a mobile contract and have been told that this will not be removed for another 4 years.

Ya i have been reading a few more treads on this forum and a lot of people saying credit ratings mean nothing, funny though as all you hear from banks when looking for a loan they cannot help you because of the rating.

keithoflynn

That you means you can quite happily ignore the issue.

Thanks ZX81, appreciate the advice.

[Deleted User]

What they say - or should say - is it's because of your rating with THEM. The CRAs are only used as a data source.

keithoflynn

So ratings vary wildly and a drop in rating like i had is not a big issue. You have put my head at ease a bit, thanks.

I will be more careful when trusting a direct debit has been set up though.

Ben8282

keithoflynn wrote: »

Barclays have said that they never reported it as late payment. So my guess is Noddle and Experian have taken a look at the November and December statements which have the outstanding balances on them and their automatic algorithms have deducted my credit rating.

As you say the late payment has not been reported and there is presumably no late payment status, then the drop in the (essentially meaningless) score will be due to the hard search, the appearance of a new account and a balance. Things will go back to normal in time.
Making £20 cash withdrawals on the credit card is not a good idea. Apart from the cash advance fee, it doesn't really look good to have cash advances particularly as the first ever transaction on the card and the only transaction in the first statement period. Could give the impression that you were desperately waiting for the card to arrive because you were in urgent need of £20 cash and were willing to pay £3 to get it.

PixelPound

keithoflynn wrote: »

A few days later i received a letter from Barclays saying it was their error that my direct debit was not set up and this "will not affect my credit rating".

My latest credit score shows a decrease in credit rating I contacted noddle my provider and they said it was because of the outstanding balance of £23.00 in November and the £210.00 in December that i have seen a decrease.

So you credit rating has gone down due to you spending on your credit card, rather than the DD error, which I assume has now been corrected? Goes to show how pointless the credit score is if it is reduced because you use the card. :mad: