Credit Score gone down during mortgage application!!!

JustJane101

Hi all,

I'm a REALLY bad stress head. In the last few months I've made sure i've been super careful. My credit history isn't the best, but I've had zero issues in the last 40 months. I had a couple of defaults prior to this for low amounts. My credit "scores" have never recovered, and probably doesn't help that I've only been at my current address a year. The mortgage company that my broker has gone to (Kensington) did a hard credit search on the 05th of this month on Equifax. They didn't check Experian by the looks of things.

My Equifax score at this point was 290 ish, and my Experian was 719. I have checked this morning, and Equifax has gone down to 169 and Experian 543!!! I can't see anything that is effecting the Equifax score, becasue it was 290 the day after the hard search was done, and that was the last change except my credit utilisation has gone down!!!!! Experian hasn't changed, AT ALL. Can't see any reason for it too.

My question is, am I being overly dramatic here, or could there be a reason for this that I'm not seeing? I haven't missed any payments at all, or anything. I'm just so worried that something is going to mess this up and I will lose my dream house and never get on the property ladder thanks to a really bad time financially and mentally I had a few years back in an abusive relationship. I am doing everything I can to get my life in a good place, and I feel like no matter what I do it never works.

Safe'n'Sound

If there's nothing else showing on your report, then it could be the mortgage application. I've just had one done on my Experian and it does say beside it "Can impact your Experian Credit Score".
Maybe others might have more info but that's all I can point to with the info provided.

csgohan4

Scores mean absolutely nothing and it is your history that matters.  Lenders use their own scoring and criteria system. 

MovingForwards

Ignore the credit score as it isn't seen or used by any financial institution. It's the credit history they see and use for their own internal scoring.

You are panicking over nothing.

[Deleted User]

If you add all your scores together, you still get quite a high number.

JustJane101

zx81, thanks for making my day!!! bes comment yet!

Thanks all. I really can't stop worrying, I want this so much and it will add so much to the quality of my life. I hate being a stress-head!

[Deleted User]

whilst all the time on here many say IGNORE your credit score - this is not correct. It is usually the first indication that something has CHANGED in your credit history. 

So for example if someone is used to having “excellent” scores, which then suddenly turn to “good” there WILL be something thats happened in your information that has caused that. 

That might be recent missed payments, a few hard searches, a CCJ ( to go to poor) but something WILL have caused it to change.
whilst it is correct the lenders dont see the actual scores as they use their own information, ie job, time at address etc, they also use the information from the credit reference agencies regarding payment history, electoral roll etc, and all that info taken together cause the lender to decide whether to lend or not. 

in your situation in the absence of no other adverse findings, the hard search may well have caused a drop in the score on the credit reference sites, but it is still up to any lender whether a previous hard search causes them any issues or not as at the end of the day, its their decision 

 

kingstreet

The "score" is indicative at best, misleading at worst. If you think it drops when you apply for a mortgage, just wait until you move house and have a new address!

JustJane101

kingstreet said:

The "score" is indicative at best, misleading at worst. If you think it drops when you apply for a mortgage, just wait until you move house and have a new address!

I've moved address 3 times in the last 4 years, if this goes through it will be 4, if it doesn't go through, I will still be moving, so TBH that will be fine. I'm no stranger to the slump in credit score because of this. it's just a shame some councils drag their heals when putting you on the electrol register!

kingstreet

Yes. I should have said "when you have lived in the same place for several years, moving house sees your score fall dramatically.
The voter's roll closes in October and is published anew in February when it becomes available to the CRAs to purchase. It's the same every year. As long as you are visible on it for much of the last few years, your current address is provable with a bank statement or utility bill and many lenders understand and accept this.

JustJane101

kingstreet said:

Yes. I should have said "when you have lived in the same place for several years, moving house sees your score fall dramatically.
The voter's roll closes in October and is published anew in February when it becomes available to the CRAs to purchase. It's the same every year. As long as you are visible on it for much of the last few years, your current address is provable with a bank statement or utility bill and many lenders understand and accept this.

I really wish there was a better system in place for us military kind of folk. It was only November last year when I finally managed to get a credit card again after some credit issues in 2015 (No CCJ's, only a few small amount defaults). When I spoke to my bank about it, they told me that most companies see you as a threat when you move often incase they need to chase you for funds, but seriously, if it's all movements between Armed Forces address' i wish there was a way for this to not affect us!

On another note, said credit card just increased my limit by £500, will that be the change on my credit report even though I don't see the increase yet written on it?