Why is my score this low? Please help!

[Deleted User]

The “score” is not a tool to use to judge how appealing you are to lenders.

Also an overdraft in many lenders eyes will look like you cannot get by day to day without having to rely on the OD.

lizferris1984

callistris wrote: »

I would suspect the frozen credit card that was reporting to your credit files as 'AP' could have been a red flag regarding the overdraft. Now that you have got this changed, this will have a lesser impact as time goes by, same as the defaults will.

If you don't apply for anymore credit for a while and keep all other borrowing good and paid on time, the score that is personal to you with the different credit reference agencies will get better over time. It takes a while but it will improve.

Good luck with it all, you just need to be patient now.

Thanks for this answer! I was wondering myself whether it would be the defaults, or the credit card. It makes sense it might be the credit card. However - I've just looked on Clearscore and no AP markers are showing? Just shows as payments up to date.

I thought I saw these markers on Noddle, but it's down for maintenance so I'll check later and post to confirm.

Thanks for the advice not to apply for more credit. How long I should hold off, a year or longer? I've had a credit increase from Very within the past few weeks (automatic) - are automatic increases ok on existing accounts, as long as I avoid new applications?

lizferris1984

!!! wrote: »

The “score” is not a tool to use to judge how appealing you are to lenders.

Also an overdraft in many lenders eyes will look like you cannot get by day to day without having to rely on the OD.

I don't understand how it could possibly look this way, if you only used it once or twice a year.

That doesn't make any sense.

If the score has no purpose then why does it exist - please explain, because you seem adamant it's completely meaningless?

Willing2Learn

I have an overdraft. But I never, ever use it, as I believe that being overdrawn is pretty toxic data from a lenders point of view. I believe it paints a picture of a borrower who is living beyond their means.

The reason the score is pretty meaningless is that some people with a lower score (me) can get credit pretty easily. Other people with an 'excellent' score, come to MSE complaining that they cannot get credit. Your credit score is for your eyes only. Yes, it can be used as an indicator, but I don't think it could be used reliably. This is because lenders only use the data in your credit files, added to the data you submit in a credit application.

lizferris1984

HeCh wrote: »

Sorry if the responses seem critical and unfriendly. I think it's just very hard for people to give definitive advice as nobody, except for those that decline an application, know the precise reason(s) why. Information on the types of things that effect the perceived risk of lending to an individual is publicly available but how all of this information is assessed to arrive at a final decision by a specific lender is not known.

You are doing absolutely the right thing by making sure that all the information held by the credit reference agencies is accurate and complete.

Many of the websites used to view this credit file information will also give you pointers to the sorts of things that may be seen as positive or negative or influencing factors (i.e. those that may make you a lower or higher risk in the eyes of the lenders) and I would suggest focusing your attention on these. Sometimes you can actively do something about things that are mentioned as possible negatives e.g. high credit card utilisation - you may be able to take steps to reduce this but sometimes you can't e.g. oldest credit account has not been held for a long time - you just have to wait for the passage of time.

Thanks for this. Someone recommended Clearscore, it is really good - contains some pretty clear direction on what's going well, and what to do better. Credit Utilisation is bringing my score down due to credit card I thought was defaulted, but wasn't. I'm now paying off the balance, so hope my utilisation score will go down soon.

I'm aware defaults I can't do much about other than pay them. Does it make any difference to my credit report if these debts show as satisfied, or is it just a case of them dropping off after 6 years?

Re: critical and unfriendly, I was only referring to the person complaining I said the word "score" too many times, and the comment I shouldn't get/need an overdraft.

lizferris1984

Ok - wow. That doesn't seem to make much sense, I mean why is there a score if doesn't really impact anything? I've got the idea it's meaningful from my mum, she's the type of person who has a top top top score (999 or whatever it is from Experian) and signs up for their service to monitor your score. So I've always accepted that it means something.

Surely it has to be at least an indicator? I do believe what you;re saying, but if it was true nonsense wouldn't it be eradicated?

Re: overdraft I'm certain it would look bad if used frequently, just not convinced a couple of times a year would look bad if you only used a small amount of the available overdraft.

[Deleted User]

My word - you’re STILL focussing on the score.

Please - stop - otherwise you’ll become obsessed with numbers that have no real world bearing.

You are the ideal target market for the CRA’s by making you believe your score means something and then buying into products to “increase” it.

The score only exists to sell you improvement products such as Loqbox and others that I won’t mention in fear you’d end up applying for them.

Regards the defaults - a default is a black mark for the 6 years it’s on there, however a settled default does of course look marginally better than one that is outstanding or unsettled.

You need to focus on bringing down any current debts.

On that note - can you provide any information on your current situation - current debts, salary, current available credit etc

ViolaLass

lizferris1984 wrote: »

Ok - wow. That doesn't seem to make much sense, I mean why is there a score if doesn't really impact anything? I've got the idea it's meaningful from my mum, she's the type of person who has a top top top score (999 or whatever it is from Experian) and signs up for their service to monitor your score.

And thus the people who make up the score have made money from it. That's what it's for.

Guerillatoker

lizferris1984 wrote: »

Ok - wow. That doesn't seem to make much sense, I mean why is there a score if doesn't really impact anything? I've got the idea it's meaningful from my mum, she's the type of person who has a top top top score (999 or whatever it is from Experian) and signs up for their service to monitor your score. So I've always accepted that it means something.

Surely it has to be at least an indicator? I do believe what you;re saying, but if it was true nonsense wouldn't it be eradicated?

Re: overdraft I'm certain it would look bad if used frequently, just not convinced a couple of times a year would look bad if you only used a small amount of the available overdraft.

If you know anything about Horse Racing think of the Credit Score as Timeform ratings... probably built off of careful calculations from previous knowledge, could also be totally meaningless but most definitely is not a reliable metric to pick winners!


Also see what ViolaLass wrote above.

HeCh

I'm aware defaults I can't do much about other than pay them. Does it make any difference to my credit report if these debts show as satisfied, or is it just a case of them dropping off after 6 years?

Debt Camel answers your question nicely here:

https://debtcamel.co.uk/defaulted-account-credit-score/

Bottom line - they will sit on your credit files for 6 years but, all things considered, they are better paid than unpaid.