Disproportionate credit rating impact?

CharlieEm

Hi all,
Is this normal, and if not how can I resolve it?

Last autumn I changed broadband providers from PlusNet to TalkTalk, and TalkTalk did a hard search on my credit file before I joined them - which seemed perfectly legit. On my next Clearscore credit report, I found that as a result of this search my rating had apparently plummeted by 236 points - more than half of my original 399 score. The hard search by TalkTalk was the only thing recorded on the report for that period. 

My rating has been slowly creeping back up by 25 points or so each month but does this seem right?? And if not, how am I able to challenge it? On the detail of my Clearscore report it says I have 11 positive factors and 0 negative factors, I have no missed payments on my record, and Experian have recently upgraded me from 'Good' to 'Excellent' so I'm struggling to understand...

Help and advice appreciated  

[Deleted User]

The score is just a gimmick that only you see and not to be taken seriously.

Don't worry about it.

eskbanker

The usual MSE forum trope on this subject applies - don't obsess about a credit score that's made up by a rating agency and won't be seen by prospective lenders.  If it really bothers you, you could ask Clearscore for further details of their proprietary methodology, i.e. how they've come up with their fictitious number, but don't be under any illusion that it matters or that they'll change it for you....

Fireflyaway

I agree not to worry. I don't even check my credit score now. When I did, I found it would sometimes change for no apparent reason. What can you do anyway?! If you need a good credit rating for a mortgage for example, just make your payments on time, dont go right to the limit of any credit facility and ensure your address history is correct and you are on the electoral register. If not then stop worrying. It's not a sign of income, wealth or sucess. My dad's mate is a millionaire. He was refused a mobile phone contract because he has no credit history! 

whaylock

I have a problem because I used a couple of comparison sites to buy my Home Insurance in February. I did NOT ask for credit as I always pay up front.  TWENTY companies did credit checks on me and as a result my credit score went down.  It has always been excellent as I pay off my credit cards every month and have never had any debts. I have just been told by an energy supplier that I must pay be direct debit because these credit checks made me a poor risk.  Why doesn't anyone warn us about this?

Hermana

[Deleted User]

Because it doesn't make any difference to anything. 

Soft searches aren't even seen by other lenders. 

D3xt3r5L4b

whaylock said:

I have a problem because I used a couple of comparison sites to buy my Home Insurance in February. I did NOT ask for credit as I always pay up front.  TWENTY companies did credit checks on me and as a result my credit score went down.  It has always been excellent as I pay off my credit cards every month and have never had any debts. I have just been told by an energy supplier that I must pay be direct debit because these credit checks made me a poor risk.  Why doesn't anyone warn us about this?

Hermana

Warn you against what?
A make believe number plummeting?

whaylock

So why would I suddenly be refused credit for the first time in my long life?  I had a letter saying that my credit record was not what they needed and those searches are the only thing that has changed.  The explanation on the site said that more than 20 credit checks might create a problem, so whether the 'number' matters or not, something has affected my credit status and everything else was marked as excellent. Since you appear to be such an expert that you can patronise me, perhaps you can explain to this 'obviously stupid' individual, or perhaps someone with better manners can.

Hermana

[Deleted User]

You've been refused because you don't meet lending criteria.

To match you against those criteria, a lender reviews your current circumstances and credit file history.  The score plays no part in that.  Neither do soft searches.

If you're having trouble bring accepted, review your three files to locate the likely issue, not forgetting affordability and income.

Willing2Learn

whaylock said:

I have a problem because I used a couple of comparison sites to buy my Home Insurance in February. I did NOT ask for credit as I always pay up front.  TWENTY companies did credit checks on me and as a result my credit score went down.  It has always been excellent as I pay off my credit cards every month and have never had any debts. I have just been told by an energy supplier that I must pay be direct debit because these credit checks made me a poor risk.  Why doesn't anyone warn us about this?

Are you saying that the searches are recorded as individual credit applications?  Or are they just background checks of the 'soft' variety.  (Soft checks do not effect you CRA credit score)

What do you think you should you have been warned about?

whaylock

Thank you for a kinder response.  The reason I am questioning this is that my financial situation has not changed for several years and I have no other negatives on my report. I have not applied for credit from any organisation since I got my 2 current credit cards several years ago and I have not even been a late payer.  I note that another forum user, CharlieEm, has reported something similar and has not had a satisfactory answer.  

I assumed it had to be the twenty credit checks even if they were 'soft' and I shall certainly warn my friends to be careful when they use comparison sites even if they don't ask for credit.

I have also looked at Clearscore where 2 insurance companies had done checks - I didn't apply to either of them and I didn't look at their quotes on line.  I haven't been able to access the third credit agency yet - I have never done this before because I have never received a letter from any organisation suggesting that "Sorry to say that your record wasn't what we needed it to be"  and I still don't understand how they can justify such a letter or how I could find myself in such a situation.  I am now afraid to apply to any other energy supplier in case the same thing happens again and that is recorded on my file.

Hermana