What is really affecting my credit score

Angeleyes03

After being rejected for credit just before Christmas I decided to check my credit report. It’s currently showing a score of 780 which is only rated as fair.

However, the only factor that’s rated as Amber (the rest are green smiley faces) is Account stability.

I have three accounts over five years old. I have opened four new accounts in the last 12 months which are my mortgage and utilities.

I don’t understand how this can have affected my score so badly, especially seeing as I show good stability with three accounts over five years old.

If anyone can shed some light on this I would really appreciate it.
I work hard looking after my money and credit score and am devastated and confused by this.

[Deleted User]

Be neither devastated nor confused and ignore the score. It's fictitious and doesn't give a useful guide to anything, especially not your creditworthiness.

It will react negatively to any changes in your credit file, hence the drop as a result of new accounts. Lenders don't worry too much about such things.

Check all three of your files to ensure that the data is correct on each.

What credit were you rejected from? It may be due to affordability, the recency of your mortgage or simply not meeting lender target market.

Angeleyes03

It was for a new iPhone through the apple store, with Barclays providing the finance agreement and completing a credit check through Experian.

[Deleted User]

What do your three credit files show (esp Experian)? Are there any anomalies? Are you showing as registered on the electoral roll) that is different to actually being registered on the ER).

Phone companies can be very fickle in their acceptance criteria.

Angeleyes03

Yes it’s definitely showing as registered on the electoral roll. I contacted Experian to check all my details were correct as I suspected they had not got my correct address but the advisor was able to confirm they did have all the correct information with no anomalies.

[Deleted User]

Maybe you just don't meet the customer criteria for Barclay's Finance.

It happens sometimes.

Angeleyes03

But that doesn’t explain why my score is low despite no negative factors.

DCFC79

Angeleyes03 wrote: »

But that doesn’t explain why my score is low despite no negative factors.

As mentioned your score is neither here nor there.

Buy a phone outright, no need to go buy 1 on credit.

Who rates you as fair ?

You checked the other 2 agencies ?

I bet the other 2 agencies also rate you as fair.

[Deleted User]

Don't worry about a low score.

It means nothing.

If you want an explanation as to why, maybe the wind changed direction

[Deleted User]

Angeleyes03 wrote: »

But that doesn’t explain why my score is low despite no negative factors.

See post 2. It's explained there.

cjmillsnun

Ignore the score. It isn’t something lenders see. It seems to be influenced by odd factors.

Lenders use something that sounds similar but is different. It is known as credit scoring.

This looks at the information contained within your credit file, the details you provided on your application form and any information they may have on past dealings they have had with you. Each element is ‘scored’ using the lender’s own individual criteria (different to that of the CRAs) and the scores totted up. If you meet the score required then the computer says yes. Otherwise ‘computer says no’