Credit score dropped 200+ points!

gionnetto

blathers wrote: »

They stated I had used more credit than I actually have. I haven't used much, just over 25%. However your advice is rather pointless "either or" clearly you don't know either, do you?

All right buddy, I'll make you a summary then.

You posted a question detailing your concerns about your Experian score dropping. I explained to you the drop is due to you opening an account (which means: a hard search + a new account opened, lowering the average length of your accounts) and using more than 25% of your limit (which you confirmed). That's called an explanation of why your Experian score dropped.

Now, you can either choose to believe that
1) scores don't matter - then why you posted your question to begin with?
OR
2) scores do matter - which would be in line with the fact that so many lenders tell you flat out "we didn't approve your application because your score is not high enough". Keep in mind that they aren't obliged to tell you the truth, but they cannot lie if they decide to disclose the information.

Just don't act insensed when your score drops after a search, a new account and a balance utilization above what's advised to keep a high score.

Cheers:beer:

gionnetto

MisterBaxter wrote: »

I always think credit scores offer a bit of a 'quick & dirty' benchmark in so far as if it drops it's an indicator that I need to check the underlying report to see why it has dropped, particularly if I can't think of a good reason for a drop (new line of credit for example).

If my score remains static or goes up then I can probably just check the underlying report every 6 months.

Also, a higher score doesn't mean acceptance, because some lenders specifically target lower scores! So one might lose his/her eligibility because his/her behaviour is "too good" for that product.

[Deleted User]

You’re STILL referring to the CRA scores though.

When a lender says you didn’t score high enough they mean in their internal system.

NOT the made up CRA unicorn pooped out number

MovingForwards

A bankrupt has a CRA score of 999, which is the maximum on one of them.

Stop looking and focusing on score and concern yourself with the contents of the report(s), are their any unknown CCJs, any accounts you have never had, are there any defaults / late payments or are all the monthly payments shown as being correct and made on time?

This is the information the financial institutions care about.

cymruchris

Mine dropped 151 points - but I understand why and am not worried. Currently in the V Poor category.

https://imgur.com/a/3luc6RG

[Deleted User]

cymruchris wrote: »

Mine dropped 151 points - but I understand why and am not worried. Currently in the V Poor category.

https://imgur.com/a/3luc6RG

You’re not in any category.
Just close your eyes and imagine what you want it to read as

PixelPound

gionnetto wrote: »

Also, a higher score doesn't mean acceptance, because some lenders specifically target lower scores! So one might lose his/her eligibility because his/her behaviour is "too good" for that product.

Search MSE forums and you will see plenty of people saying something along the lines of "I have an excellent credit score but got rejected" - more to getting credit than a score.

credit reports usually highlight what's changed, so its checking these if concerned at a change in the score

gionnetto

MovingForwards wrote: »

A bankrupt has a CRA score of 999, which is the maximum on one of them.

Stop looking and focusing on score and concern yourself with the contents of the report(s), are their any unknown CCJs, any accounts you have never had, are there any defaults / late payments or are all the monthly payments shown as being correct and made on time?

This is the information the financial institutions care about.

There is a lot of confusion regarding credit history vs credit scores. Credit history looks at past behaviours, credit scores are predictive of future behaviours. That's why they can be different. Essentially, credit scoring systems are meant to spot what looking at history alone can't, such as people with good history likely to default within few years, and people with bad history likely to have understood the lesson of the past. There are statistics (and, often time, neural networks) involved in that prediction, it's not just "made up" like so many seem to imply or suggest.

[Deleted User]

You're confusing CRA scores with real credit scoring, such as that done by lenders. Hence the wide discrepancy between CRA views and lender assessments.

[Deleted User]

Yet again you’re still looking at the CRA score.

How can it be looking at future behaviour and “score” you for it?

What bubble are you living in?