Credit rating dropped 132 points

TescoClubCardUK

I usually check my credit rating every so often, last time I checked was around the end of March and it was still at 999 on Experian, yesterday I decided to pay off a finance loan in full under the loan agreement, (buy now pay 9 months later) I then checked my credit rating and it had dropped to 857, which I don't quite understand, I have never missed a payment or anything to have negative affects towards my credit.

Surely paying off a loan agreement early doesn't warrant a 132 point drop?

glentoran99

But what day of the week did you pay it off? Was it sunny or raining?

PixelPound

It could do, after all paying it off early means they didn't get the full whack of interest or pound of flesh. The CRA's can often view ANY change as negative, the impact of you paying it off early will lessen over time and it should go back up, so long as you don't do anything drastic like manage your finances in a responsible way!!!

[Deleted User]

TescoClubCardUK wrote: »

Surely paying off a loan agreement early doesn't warrant a 132 point drop?

Exactly.

This is why the scores are not real.

Plus a Royal Wedding always takes a few points off, because of all the resources it uses.

PixelPound

Its why a 999 score is nothing to brag about .... the only way is down!

TescoClubCardUK

Thanks for the replies,

@glentoran99, I believe it was nice and sunny for a change lol

@nic_c, It was just a bit of a shock to see it drop so drastically, never missed a payment in my life, god knows how much it would drop if I was to miss a payment lol.

@zx81 Well I have been reading about and quite a few people have said the point system is aload of c**p, all generic and so on but to have a score of 999 for the 6+ years and then that happens, seems like they prefer you to be up to your eye balls in debt. Haha yeah, someone had to pay for it.

DCFC79

TescoClubCardUK wrote: »

Thanks for the replies,

@glentoran99, I believe it was nice and sunny for a change lol

@nic_c, It was just a bit of a shock to see it drop so drastically, never missed a payment in my life, god knows how much it would drop if I was to miss a payment lol.

@zx81 Well I have been reading about and quite a few people have said the point system is aload of c**p, all generic and so on but to have a score of 999 for the 6+ years and then that happens, seems like they prefer you to be up to your eye balls in debt. Haha yeah, someone had to pay for it.

Why concern yourself with a score only you can see, as long as all the data is correct then its ok.

forgotmyname

zimou13 wrote: »

Hi everyone. I have been trying to pay down debt and improve my credit. I jad three credit cards that were charged off about a year ago. I got my act together and paid then all of in full about three months ago. I track my credit score on credit karma and it had been going up steadily. Overnight it seemed to drop 40 points. Why is this? I am no longer delinquent on amy accounts and have not opened up any new lines of credit.

Because the score is made up, only you and the company trying to sell you the score will know that number. Nobody else will know it.

Buy yourself something nice on a CC and pay it off in full when the statement arrives and your score could drop like mine did.

I assume your a US user, this is a mainly UK site.