Credit Score getting worse not better... help!?

Rookie1986

Hi all,

I'll open with a quick summary, I completed a debt management plan in January this year. By April my credit score had risen to 550 where it has stayed since.

At the start of this month I had a default date changed from August 2015 to the correct date of February 2014 (still waiting for this to show on my file). The only credit I have available is via a Capital One Credit Card but this month I paid the balance down and didn't place any new transactions.

Now when checking this month my credit score has decreased back down to just over 500, I've made no changes to any of my accounts, obviously I've not taken on any new credit (I couldn't even if I wanted to) so I'm at a loss as to why my score should be decreasing instead of increasing....

I don't really know much about credit scoring but if anyone could help and advise me it would be much appreciated

[Deleted User]

All you need to know about credit scoring is that it's an entirely meaningless number. It reacts negatively to changes - such as clearing a balance.

Ignore it, continue to clear your balance in full each month.

Ebe_Scrooge

Your credit score is entirely fictitious, and has no bearing whatsoever on your ability to obtain credit. Lenders can't even see it.


Anecdotally, the CRAs view any change in your history as negative, even a "positive" change such as paying off a debt. Ignore your score, concentrate on improving your history - and just make sure that all the information held by the CRAs is factually correct.

Rookie1986

So my score decreasing won't have any bearing on my eligibility to obtain credit?

I'm a little confused, you say I should concentrate on improving my history, but my history is in the past, how do I change the negative behaviours that have previously occurred? Do I phone my previous creditors and ask them to remove it as it's now history or something?? Sorry, really confused here :S

Additionally, if it's entirely fictitious and has no baring on ability to obtain credit why do we have a credit score to begin with?

This whole credit thing has got me totally lost off

DCFC79

Rookie1986 wrote: »

So my score decreasing won't have any bearing on my eligibility to obtain credit?

I'm a little confused, you say I should concentrate on improving my history, but my history is in the past, how do I change the negative behaviours that have previously occurred? Do I phone my previous creditors and ask them to remove it as it's now history or something?? Sorry, really confused here :S

Additionally, if it's entirely fictitious and has no baring on ability to obtain credit why do we have a credit score to begin with?

This whole credit thing has got me totally lost off

The score/ rating is just a figure, a representation of how your report looks to you but thats it, it could be a score of 900 but it doesnt mean lenders will lend to you.

Or your report could be perfectly fine from a lenders point of view and the agency rates you as X.

You do know there are 2 other agencies who will rate you and who lenders report too.

It takes time.

Richey_

You are not paying £14.99 a month are you to Experian? You know you can get your credit history and fictitious score for free?

Rookie1986

No I use the free options available to obtain my report.

Ebe_Scrooge

Rookie1986 wrote: »

So my score decreasing won't have any bearing on my eligibility to obtain credit? In itself, no.

I'm a little confused, you say I should concentrate on improving my history, but my history is in the past, how do I change the negative behaviours that have previously occurred? You can't. What you can do is build up a pattern of responsible credit usage from now on. The easiest way to do this is to apply for one of the sub-prime cards, put everyday spending on it, and make damned sure you pay in full, on time every month. Do I phone my previous creditors and ask them to remove it as it's now history or something?? Sorry, really confused here :S No, the items listed are factually correct, you can't change that. All you can really do is prove that you're now a "reformed character", and that you can borrow and repay responsibly.

Additionally, if it's entirely fictitious and has no baring on ability to obtain credit why do we have a credit score to begin with? So that the CRA can try and sell you expensive subscriptions. Lenders can't see your score, all they can see is your history.

This whole credit thing has got me totally lost off

My answers in red above. Bear in mind, though, that a default will stay on your file for 6 years, and will be a red flag to many lenders. What you need to do now is concentrate on building a pattern of responsible borrowing/repayment.

Rookie1986

So when can I expect creditors to "take me seriously" and consider my applications - around 10 years from my initial defaulted accounts??

MEM62

Rookie1986 wrote: »

So my score decreasing won't have any bearing on my eligibility to obtain credit? Correct - absolutely none!

I'm a little confused, you say I should concentrate on improving my history, but my history is in the past, how do I change the negative behaviours that have previously occurred? Do I phone my previous creditors and ask them to remove it as it's now history or something?? Sorry, really confused here :S
You change your behaviour now, this is recorded on your records and, as time goes by, this becomes your history. The longer you have shown responsible behaviour the better your history becomes and the more favourably you will be viewed by lenders. Your history dates back six years and generally this is a far back as lenders see.

Additionally, if it's entirely fictitious and has no baring on ability to obtain credit why do we have a credit score to begin with? So that credit referencing agencies can sell you subscription services that you do not need to improve your fictional score. Don't buy into it just because the TV adverts are slick.

This whole credit thing has got me totally lost off

If you have just completed a DMP I would imagine that the last thing you would want to do is maximise your ability to borrow. Either way, your ability to change the way that lenders view you is restricted to the way you manage your finances. Manage them responsibly and, in time, you will be viewed favourably. Manage then badly and you won't. No magic 'score' will have any impact whatsoever.

Rookie1986

MEM62 wrote: »

If you have just completed a DMP I would imagine that the last thing you would want to do is maximise your ability to borrow. Either way, your ability to change the way that lenders view you is restricted to the way you manage your finances. Manage them responsibly and, in time, you will be viewed favourably. Manage then badly and you won't. No magic 'score' will have any impact whatsoever.

I'm in desperate need of a new car as my current one is very unreliable and spends more time in the garage than on the road (it's costing more to keep it going than it's worth). The reason I entered my DMP is because I lost my job so ended up working part time and making minimal payments to my creditors, since then I've gone back into full time employment, cleared all my outstanding debts but now I'm stuck with effectively a 10 year "hangover" or so it would seem to get back on the good side of things