99 point dive in credit score and no idea why

Willing2Learn

CCJs and bankruptcy details are held in your credit report, just like any defaults, late payments etc etc

Just keep doing what you are doing. Spend freely on the card and make sure to pay the balance in full after you have received the monthly statement.

I recommend setting up a Direct Debit for the full balance as it removes the chance of any mistakes.


And finally.....stop worrying about things dude!!!!

madvicker

With such a low limit I wouldn't worry about your utilisation. Just make sure you pay off the card in full every month. The limits are usually automatic, but you can ask for limit increases as well. Although they tend to like a 6 month gap between limit increase requests.

Go to noddle.co.uk That will give you callcredits credit report on you. Go to clearscore.com for Equifax's credit report. Lastly, you can order your statutory report from Experian, but it will take some time to get. You shouldn't pay a penny to see your report.

sparkey1

If you are using the free services, your score is usually about 2 months behind. Most of the data on your report today will be Mays data.

So your new card, taken out 2 months ago caused 3 issues.

1 Its a new credit account
2 It has a 50% utilisation rate (the % is important the actual amount isnt)
3 It has a low limit. Low limit cards are a sign of credit risk.

So dont be concerned. The score is the credit reference agencies calculation. Its not the same as the scoring system used by a lender.

Paying the card 2 days after the statement date makes no difference to your score. However paying the card 2 days before the statement date will reduce the borrowing reported, and show a lower utilisation level reported.

[Deleted User]

Ignore it.

The temperatures dropped so the score will. Towards the weekend when the weather warms up again your "score" will rise as well.

The score is there as a marketing gimmick for the CRA's to sell you "improvement" products.

So long as all the data on all 3 of your credit files are correct, then you can safely ignore the mythical number of nothingness.

Connar

sparkey1 wrote: »

If you are using the free services, your score is usually about 2 months behind. Most of the data on your report today will be Mays data.

So your new card, taken out 2 months ago caused 3 issues.

1 Its a new credit account
2 It has a 50% utilisation rate (the % is important the actual amount isnt)
3 It has a low limit. Low limit cards are a sign of credit risk.

So dont be concerned. The score is the credit reference agencies calculation. Its not the same as the scoring system used by a lender.

Paying the card 2 days after the statement date makes no difference to your score. However paying the card 2 days before the statement date will reduce the borrowing reported, and show a lower utilisation level reported.

Thank you all for the great input. Sadly my card won't allow me to pay before a certain date each month although I would love to do that.

Your 3rd point seems a little strange to me. A low limit is a sign of credit risk so lowers my credit score but is only given to me at that limit due to an original low score. So they're punishing you for having a low credit score by lowering it further after accepting you're application for a card.

[Deleted User]

Connar wrote: »

Thank you all for the great input. Sadly my card won't allow me to pay before a certain date each month although I would love to do that.

What do you mean by this?

[Deleted User]

Connar wrote: »

So they're punishing you for having a low credit score by lowering it further after accepting you're application for a card.

They cannot punish you for something they don't know, or lower something that doesn't exist .

DCFC79

You may as well get your report from the other 2 agencies.

sparkey1

To explain point 3. They have given you a credit limit. However low limits are a sign that the provider thinks you are a higher risk. Hence you have £400 and not £4000.

No one is punishing you, thats just the impact on the CRAs scoring technique.

So in future, always accept an increase.

I dont see why you cant pay your card early. All you need is a sort code, account number and the 16 digit card reference. You just go to your bank online and pay the credit card. You should not need to go to the providers website. Who is the card with?

Connar

sparkey1 wrote: »

To explain point 3. They have given you a credit limit. However low limits are a sign that the provider thinks you are a higher risk. Hence you have £400 and not £4000.

No one is punishing you, thats just the impact on the CRAs scoring technique.

So in future, always accept an increase.

I dont see why you cant pay your card early. All you need is a sort code, account number and the 16 digit card reference. You just go to your bank online and pay the credit card. You should not need to go to the providers website. Who is the card with?

I thought point 3 meant that future lenders would see the low limit and that would have a knock on effect with there limits etc. It's obvious now that it's been explained.

I use my card throughout the month and around the 25th it can be paid (within roughly 21 day grace period) its a barclaycard.