Credit score gone down

Tonic83

Hi, can anyone help me understand why my score has gone down?
My credit card balance is 0 as I’ve paid it off, i’ve no long term debt and I’ve been making all my bill payments on time and yet my score has been dropping month on month. I’ve recently managed to save money for a deposit to buy my first home but can not secure a mortgage as my credit score has now dropped below 200, this is so frustrating. Any advice greatly appreciated

Willing2Learn

Hi,

I don't know why your score down. But that does not matter as your score is not seen or used by mortgage lenders. Lenders only look at your credit file and only use the data within to determine their lending decision-making process

• Have you recently moved home?
• Are you on the Electoral Register?
• Do you have credit accounts with water, electric and gas utilities?
• Do you have a contract on your mobile phone?
• Do you have a landline, broadband and subscription pay-TV at home?
• Do you have any current accounts listed on your credit file?
• Do you have an overdraft listed on your credit file and do you use this facility?
• Do you have any loan listed on your credit file?

Edit: And welcome to the forum Tonic83

[Deleted User]

Temperatures started dropping again.

The drop is likely because of the reduction in the credit card balance.

Lenders don’t see your “score” so this isn’t the reason you’re not getting a mortgage.

Tonic83

Thanks for the info 🙂
I’m on the electoral register, it’s a rented house so all utilities are on meters and we have oil rather than gas here in NI.
I don’t have a contract phone only a payg one.
I don’t have a landline or sky etc only Netflix
My current account is on my credit file though and I do have an overdraft which is used every month that’s £200 but I can never seem to get out of and I’ve never had any loans other than the overdraft

[Deleted User]

Using the overdraft won’t be helping your credit HISTORY (not score).

Try and avoid using the overdraft.

Willing2Learn

Tonic83 wrote: »

it’s a rented house so all utilities are on meters and we have oil rather than gas here in NI.
I don’t have a contract phone only a payg one.
I don’t have a landline or sky etc only Netflix
My current account is on my credit file though and I do have an overdraft which is used every month that’s £200 but I can never seem to get out of and I’ve never had any loans other than the overdraft

Is your oil on a meter too? As it would be better for your credit profile to be paying by Direct Debit as it is a form of credit.
Get your self a SIM-only contract for the mobile as it improves your credit profile. (Mine costs me just £8/month)

The worst thing on your credit profile is the use of your overdraft. It could appear to lenders as though you are living beyond your means. Clear the overdraft but keep the overdraft facility as this is best for your credit history.

Tonic83

The oil is a payg facility over here, don’t offer a direct debit option as you order by 100 litres up to 900 litres at a time. I will deffo see if I can stop using the overdraft and try and repair what damage I’ve done constantly using it.
Thank you so much for all your help, really appreciated x

Terry_Towelling

One might argue that using your overdraft every month is in fact a long-term debt. So, forget your score and concentrate on getting overdraft-free.

Now, is your overdraft level about the same each month and is your income stable in both amount and frequency?

If so, it sounds like your outgoings are pretty much a match for your income and you just need to understand what historical incident (or incidents) caused you to overspend at that time. Once identified, you then try to avoid doing that again and you work out a plan for spending a bit less each month from now on, until your month-end bank balance is not overdrawn.

However, if your overdraft is getting slightly larger each month, that hints at a systemic failure in your finances and that you are living beyond your means. That would require you to rein in your spending on a permanent basis - unless you can increase your income instead.