Cancelled overdraft, credit rating dropped

longwalks1

As above, Ive had a £3k overdraft with Lloyds for a few years but not used it for well over 18 months, so decided to close it.

Then, my credit score on CreditExpert drops by about 70 points? I guess its because I'm using more of my now available credit, did I do the wrong thing?
Was just trying to clear up my finances a little and knew I wouldnt need it again

[Deleted User]

It would have been slightly netter to leave it open as it shows youare trusted bu have no reliance on the OD. But the drop in score is irrelevant.

Credit score hate change, so it will drop for no reason and should therefore be laughed at and then ignored.

Thrugelmir

Any change to your circumstances will impact your score. As the CRA's don't know the reason behind the change. Therefore for the benefit of the users of your data. They will assume it's negative initially. Soon enough as the dust settles your file will return to where it was.

Geoff1963

Probably not a good idea to ask for the OD back, else the score will drop again.:)

cjmillsnun

The score dropped because Experian's random number generator decided to generate a new number. Seriously, don't worry about it. The credit "score" is marketing waffle

PixelPound

Just do an overview of your existing credit - is it credit cards, what % of each card are you using and what % of all available credit are you using? Above 50% is a negative. You could ask any that you have had for over a year (where %utilisation is high) for an increase.

The daft thing is it may impact your score that way too - any change often negatively impacts, even if its creditors trusting you with a higher limit. I do believe they have a factor in their calculations of "time since any changes" as if you do nothing your score will improve over time

HolmesM

Maybe take out a credit card, use it each month, but pay it off each month too. That should restore your credit after a few months.