Why is credit score dropping?

Craigjw40

Hi All, anyone have any idea why my credit score which started at 710 when I joined the credit club 3 months ago dropped to 705 the following month and then 680 this month. I’ve done nothing any different at all, I haven’t applied for anything, haven’t changed banks, haven’t changed address, haven’t changed jobs, absolutely nothing is any different. I have a credit card with a £2000 limit which normally accumulates about £1000 throughout the month and I always pay it off in full about 10 days before the due date. I’m a bit puzzled and disappointed as I’m trying to improve my credit score. (Nothings different on my credit file either).

boo_star

Stop worrying about your CRA score, they're not lending you money.

Ben8282

It has probably dropped because they know you are monitoring it and think that by lowering it they can persuade you to attempt to improve it by taking out a credit product suggested by them.
Anyway, forget about improving your credit score and just concentrate on conducting your credit accounts correctly.

visitere

Craigjw40 wrote: »

Hi All, anyone have any idea why my credit score which started at 710 when I joined the credit club 3 months ago dropped to 705 the following month and then 680 this month. I’ve done nothing any different at all, I haven’t applied for anything, haven’t changed banks, haven’t changed address, haven’t changed jobs, absolutely nothing is any different. I have a credit card with a £2000 limit which normally accumulates about £1000 throughout the month and I always pay it off in full about 10 days before the due date. I’m a bit puzzled and disappointed as I’m trying to improve my credit score. (Nothings different on my credit file either).

You need to refer to the credit files on which the score was calculated.

You may think nothing has changed, and indeed it may not have done, but do your credit files actually reflect that?

Remember, your credit score is about predicting future behaviour. If you only have one credit procuct, then it mat be very difficult to predict your future behaviour.

Also, remember that credit scoring is as much about 'will you make the lender money' as it is about risk. If the only credit product you have is a credit card that you are only using half of the facilty on, and are now demonstating that you are regularly are paying it off IN FULL every month, then there's not much there to suggest you will make a lender money.

Please refer to the official MSE articles on credit scores, how to improve your score, how to build up your credit history, etc, for more information

stehouk

If you are spending over £1000 per month on a credit card it may be worth you applying for a cash back/reward credit card, the aqua reward card is also a credit builder card but make sure you pay it off in full every month as the interest rates are high.
I prefer to keep my spending under 50% of available credit and another credit card will help you with this.

gionnetto

Craigjw40 wrote: »

I’ve done nothing any different at all, I haven’t applied for anything, haven’t changed banks, haven’t changed address, haven’t changed jobs, absolutely nothing is any different..

Any chance old settled accounts (such as loans, etc) dropped out of your credit history? Anything older than 6 years?

femalemonarchfemalecanine

Craigjw40 wrote: »

Hi All, anyone have any idea why my credit score which started at 710 when I joined the credit club 3 months ago dropped to 705 the following month and then 680 this month. I’ve done nothing any different at all, I haven’t applied for anything, haven’t changed banks, haven’t changed address, haven’t changed jobs, absolutely nothing is any different. I have a credit card with a £2000 limit which normally accumulates about £1000 throughout the month and I always pay it off in full about 10 days before the due date. I’m a bit puzzled and disappointed as I’m trying to improve my credit score. (Nothings different on my credit file either).

my score goes up and down regularly with no changes in my actual accounts etc; you only need concern yourself if it suddenly plummets because that would indicate there was something amiss which would need sorting out. Otherwise it's nothing to worry about.

phillw

visitere wrote: »

Also, remember that credit scoring is as much about 'will you make the lender money' as it is about risk.

Yeah a single credit score can't easily reflect how a lender who wants customers that generate interest or late payment fees (while hopefully ultimately paying back the debt) will see you compared to a lender who wants you to pay a fee for using the product and only ever pay back on time.