Credit club /Experian affordability

HampshireH

I'm sure I'm missing the obvious but here goes.

3 months ago my predicted credit card and loan affordability plumbeted for no apparent reason (no significant changes and regular payments all met) via the credit club/ experien report i get.

My debt ratio to annual income is 20% (excluding mortage) but is coming down by £600 a month or so - its all interest free (1 x credit card due to be paid off august and 1 x kitchen finance over 3 years) 

Im struggling to understand why affordability is low. BUT the reports on all current accounts is zero balance. When I have savings.

What am i missing? I generally have about £1000 disposable income a month after payments.

[Deleted User]

The numbers and estimates are flakey, to put it kindly. Experian in particular rate you more negatively with any change, including debt reduction. That's probably what's happened here.

If your circumstances haven't changed, there's no reason to worry.  

HampshireH

Deleted_User said:

The numbers and estimates are flakey, to put it kindly. Experian in particular rate you more negatively with any change, including debt reduction. That's probably what's happened here.

If your circumstances haven't changed, there's no reason to worry.  

Ok thankyou. I dont need any credit it just seemed odd suddenly go from all green to very weak without an explanation

nick74

It's a common complaint on here. My affordability plummeted to 'Very Weak' for no apparent reason towards the end of 2018 and has been there ever since. I suspect that the algorithm which calculates it is broken in some way, but to be honest it's best to just ignore it. It's meaningless and no one sees it but you. 

Fordytri

Same here, my affordability has suddenly plummeted to 'Very weak' ...would be nice for MSE to clarify reasons please.

[Deleted User]

The reason is it's an inaccurate algorithm.