Guidance

Gethino

Hi. Just a bit of guidance needed. I have been stuck in my £3500 overdraft for 3/4 years now and finally took the decision to make a money transfer from a Virgin Credit Card at 0% as I was being charged £45 a month for the overdraft. I did a credit score check before the money transfer and it was 890 which is quite decent I'm led to believe. However I did it yesterday after getting the Virgin Credit Card and it's down to 590. That's quite a drop. It's weird because I had 890 stuck in my Overdraft and I'm actually trying to do something about it it goes down. My question is when I start repaying the Credit Card debt of £3500 will the credit score rise again? Me and my girlfriend are beginning to search for a house. Am I right in saying a credit score of 590 will not be good enough for a mortgage?

DCFC79

Gethino wrote: »

Hi. Just a bit of guidance needed. I have been stuck in my £3500 overdraft for 3/4 years now and finally took the decision to make a money transfer from a Virgin Credit Card at 0% as I was being charged £45 a month for the overdraft. I did a credit score check before the money transfer and it was 890 which is quite decent I'm led to believe. However I did it yesterday after getting the Virgin Credit Card and it's down to 590. That's quite a drop. It's weird because I had 890 stuck in my Overdraft and I'm actually trying to do something about it it goes down. My question is when I start repaying the Credit Card debt of £3500 will the credit score rise again? Me and my girlfriend are beginning to search for a house. Am I right in saying a credit score of 590 will not be good enough for a mortgage?

You do know lenders etc dont see the score ?

All this faffing with the score when it's the history that matters.

What is on your file ?

[Deleted User]

Gethino wrote: »

Am I right in saying a credit score of 590 will not be good enough for a mortgage?

It's neither good enough nor bad enough.

It's just not anything.

Pixie5740

Who led you to believe a score of 890 is quite decent?

http://www.moneysavingexpert.com/loans/credit-rating-credit-score

AndyPix

The score dropped because you have just taken out a new means of credit.


The score doesnt matter anyway as it is only a broad indication as to the contents of your credit file
And the company who provide the score will apply different weights to different aspects of the contents of that file than a company you are applying to for credit.


The score assigned by experian et al is not the score that you need to worry about.


The score you need to worry about is that score that the potential lender will come up with based on the contents of your credit file.
Unfortunately, you will not know how they calculate these scores

MEM62

Gethino wrote: »

I did a credit score check before the money transfer and it was 890

Meaningless.

Gethino wrote: »

However I did it yesterday after getting the Virgin Credit Card and it's down to 590.

Equally meaningless.

Don't worry about 'scores - they are randomly generated numbers. All you need to worry about is that you manage your finances responsibly and ensure that the data on your credit report is complete and accurate.