Repair the damage

Jman123

Hi all

My credit score has gone from “excellent” to “poor” within a few months bacsically as a result of using my credit cards constantly for 12 months or so with the last few months the balances getting at the limit.

My credit report is showing the ONLYnegative item as being my credit card utilisation is over 90%. Everything else in the report is good and I’ve never missed payments etc.

I’m quite shocked at the drastic drop in score as a result of this. I knew it would impact it but not quite that much.

My question is. Is this fairly easy to repair say over 12 months for example. If perhaps I can reduce the balances significantly and get the utilisation % down to a reason % figure!??

Jman123

And if for example if I paid all the balances off tomorrow, would that score get back to excellent fairly quickly in the basis the negative impact of my file is now not an issue?

Ben8282

Jman123 wrote: »

And if for example if I paid all the balances off tomorrow, would that score get back to excellent fairly quickly in the basis the negative impact of my file is now not an issue?

In theory, ets it would.

Jman123

Ok so I’m basically thinking of getting a Loan over a number of years to pay off the credit card debts. I appreciate this is just shifting the debt but I’m working on the theory that high credit cards debts are not good at all for your credit file and perhaps loans might be better and not have as much impact.

On the basis it’s telling me my only negative is the high % util ?

[Deleted User]

Your credit score/rating isn't a real thing, neither is the "advice" given by Experian or any of the other CRA's.

What is your total debt?

Cards, limits, balances, APR's etc.

Willing2Learn

Jman123 wrote: »

Ok so I’m basically thinking of getting a Loan over a number of years to pay off the credit card debts. I appreciate this is just shifting the debt but I’m working on the theory that high credit cards debts are not good at all for your credit file and perhaps loans might be better and not have as much impact.

On the basis it’s telling me my only negative is the high % util ?

No. Don't get a loan if it is just to increase your 'credit score'. No-one uses the 'credit score'. Lenders neither see nor use it.

[Deleted User]

Willing2Learn wrote: »

No. Don't get a loan if it is just to increase your 'credit score'. No-one uses the 'credit score'. Lenders neither see nor use it.

We went over this the last time, continuously...

https://forums.moneysavingexpert.com/discussion/comment/76231502#Comment_76231502

Ben8282

Why are you so concerned about your credit score. What are you trying to achieve? You have got credit cards and appear to believe that you will be able to get a loan. Why is the score so important? Do you want to achieve a 999 score then print it out, frame it and hang it on the wall?
The score is meaningless and plays no part in lenders decisions. High levels of debt and high utilisation %'s on credit cards do. The point is though that it only matters if you actually intend making further applications for credit. More cards. More loans.
Your only real concern at this point should be the interest that you are paying on the credit card debt and how to reduce it - both the interest and the level of debt.
Also your credit files are not 'damaged'; they are simply showing a high level of credit card utilisation at the present time.
Are you sure this is the ONLY negative? To go from Excellent to Poor so quickly makes me wonder if there are not some missed payments or something there as well.

jimbo26

Don't consolidate just to see your made up score recorded as Excellent.

Jman123

Genuinely yes. This is the only negative factor showing on my credit report.

I think what I’m getting at is.
Is credit card debts and utilisation an up to date factor as such, as in Regardless of how long I’ve had the debts or how high they are etc. If I cleared them say 2-3 months before applying for a mortgage for example - all in theory would be good because this is no longer an issue??? Or would there still be issues because the recent history is there???

Ben8282

I would say that when they are repaid they are repaid and no longer an issue.
Assuming that there is no adverse information such as late payments and the accounts have been correctly conducted, I can't see why having had and repaid large credit card balances should have an adverse effect on a mortgage application made a few months later.