Credit Score Dropped over 100 points in less than a month.

[Deleted User]

bubby08 said:

So still doesn’t explain the sudden drop of 100 + plus points.

The drop was already explained.

D3xt3r5L4b

The drop in points is because it felt like doing it.
There's no rhyme or reason to it

moneywow1

Deleted_User said:

It's because of the agreement falling off your file.  Any change, whether good or bad, will tend to drop your score.  

But it's not seen by anyone and not a factor in lending, so don't worry about it.

Why would they take into account something dropping off though?

I understand changes that can be seen on a report, but how would they know something existed when it isn't on there?

Are you implying that they go off the history of the users Equifax/ClearScore account/report history as well as the credit report? And that if the user were to sign up today for the first time, they would have a higher score because Equifax wouldn't know about something dropping off their account recently?

Not trying to prove you wrong or anything, genuinely curious

[Deleted User]

Because when something drops off a credit report, it's a change.  A debt, a CCJ, an account, a default.  They're all changes and CRA scores measure change.

Lenders go off the credit history they can see on your files.  They don't see anything that is no longer there.  With minor differences, your credit report is the same as what lenders see, but without the scores.

mcpitman

moneywow1 said:

Deleted_User said:

It's because of the agreement falling off your file.  Any change, whether good or bad, will tend to drop your score.  

But it's not seen by anyone and not a factor in lending, so don't worry about it.

Why would they take into account something dropping off though?

I understand changes that can be seen on a report, but how would they know something existed when it isn't on there?

Are you implying that they go off the history of the users Equifax/ClearScore account/report history as well as the credit report? And that if the user were to sign up today for the first time, they would have a higher score because Equifax wouldn't know about something dropping off their account recently?

Not trying to prove you wrong or anything, genuinely curious

As soon as you sign up the CRA's will share a "data picture" of you for as long as records last (some longer than 6 years). Note they already have the data, just you don't have access to it.

So they won't be judging you by your time with them, they will be judging you by algorythms attempted to equal scorecards for the lenders they also send your data to/provide services to.

Couple of issues; (1) not all lenders use the same criteria for lending, so there is no blanket approach. (2) None of the CRA's are lending you the money, so actually aren't entitled to an opinion of your credit worthiness.

The score is a gimmick to get you to sign up monthly, at best a loose "barometer of doing the right things to be seen as a good person by a computer deciding whether to lend you money".

moneywow1

Deleted_User said:

Because when something drops off a credit report, it's a change.  A debt, a CCJ, an account, a default.  They're all changes and CRA scores measure change.

Lenders go off the credit history they can see on your files.  They don't see anything that is no longer there.  With minor differences, your credit report is the same as what lenders see, but without the scores.

mcpitman said:

moneywow1 said:

Deleted_User said:

It's because of the agreement falling off your file.  Any change, whether good or bad, will tend to drop your score.  

But it's not seen by anyone and not a factor in lending, so don't worry about it.

Why would they take into account something dropping off though?

I understand changes that can be seen on a report, but how would they know something existed when it isn't on there?

Are you implying that they go off the history of the users Equifax/ClearScore account/report history as well as the credit report? And that if the user were to sign up today for the first time, they would have a higher score because Equifax wouldn't know about something dropping off their account recently?

Not trying to prove you wrong or anything, genuinely curious

As soon as you sign up the CRA's will share a "data picture" of you for as long as records last (some longer than 6 years). Note they already have the data, just you don't have access to it.

So they won't be judging you by your time with them, they will be judging you by algorythms attempted to equal scorecards for the lenders they also send your data to/provide services to.

Couple of issues; (1) not all lenders use the same criteria for lending, so there is no blanket approach. (2) None of the CRA's are lending you the money, so actually aren't entitled to an opinion of your credit worthiness.

The score is a gimmick to get you to sign up monthly, at best a loose "barometer of doing the right things to be seen as a good person by a computer deciding whether to lend you money".

I understand the score is nonsense and a made-up algorithm.

What I mean is, how can something dropping off be measured as a "change" (or negative at least) when they wouldn't see it was on there in the first place, because it's dropped off? I understand a positive change (i.e. an old default/CCJ dropping off) because it's no longer on the credit report, but I just don't understand how they would know something was on there.

Or do you mean CRAs can see beyond 6 years, but they just don't provide this information to lenders (or lenders can't use data that's over 6 years old)?

PaulW922

bubby08 said:

I think I may have found more information, having trawling through my credit report, I have now found an account from 5 and a bit years ago listed as a linked address. This account looks as it has been marked as defaulted. However it was last updated in 2018 so I have to imagine that it has been on my credit report since that time. So still doesn’t explain the sudden drop of 100 + plus points. What relevance does a linked address have on my file it’s under a linked address rather than a previous address.

A linked address is very relevant, because all the data recorded there about you is visible to potential lenders. (It is largely the same as a previous address). They can take it into account when considering whether to offer you credit. The default date on the account you mention will always carry the original date of default. It is possible that the lender updated the balance outstanding back in 2018, but the default date should not itself change. As to whether this has recently affected your credit profile - if that address link is new (and it could be especially if someone is trying to find you to enforce the debt) then the default will have now come into play. I believe that equifax allows you to view previous interactions of your credit report too, so maybe you could check and se if the address link is new?

D3xt3r5L4b

moneywow1 said:

Deleted_User said:

Because when something drops off a credit report, it's a change.  A debt, a CCJ, an account, a default.  They're all changes and CRA scores measure change.

Lenders go off the credit history they can see on your files.  They don't see anything that is no longer there.  With minor differences, your credit report is the same as what lenders see, but without the scores.

mcpitman said:

moneywow1 said:

Deleted_User said:

It's because of the agreement falling off your file.  Any change, whether good or bad, will tend to drop your score.  

But it's not seen by anyone and not a factor in lending, so don't worry about it.

Why would they take into account something dropping off though?

I understand changes that can be seen on a report, but how would they know something existed when it isn't on there?

Are you implying that they go off the history of the users Equifax/ClearScore account/report history as well as the credit report? And that if the user were to sign up today for the first time, they would have a higher score because Equifax wouldn't know about something dropping off their account recently?

Not trying to prove you wrong or anything, genuinely curious

As soon as you sign up the CRA's will share a "data picture" of you for as long as records last (some longer than 6 years). Note they already have the data, just you don't have access to it.

So they won't be judging you by your time with them, they will be judging you by algorythms attempted to equal scorecards for the lenders they also send your data to/provide services to.

Couple of issues; (1) not all lenders use the same criteria for lending, so there is no blanket approach. (2) None of the CRA's are lending you the money, so actually aren't entitled to an opinion of your credit worthiness.

The score is a gimmick to get you to sign up monthly, at best a loose "barometer of doing the right things to be seen as a good person by a computer deciding whether to lend you money".

I understand the score is nonsense and a made-up algorithm.

What I mean is, how can something dropping off be measured as a "change" (or negative at least) when they wouldn't see it was on there in the first place, because it's dropped off? I understand a positive change (i.e. an old default/CCJ dropping off) because it's no longer on the credit report, but I just don't understand how they would know something was on there.

Or do you mean CRAs can see beyond 6 years, but they just don't provide this information to lenders (or lenders can't use data that's over 6 years old)?

You’re still missing the main point.
Just ignore the score and any changes to it. 

You’ve just proven how accurate is. I.e it’s not. 

Selector

Hello, bubby08.
I was glad to see your thread this morning as it saved me from starting one of my own regarding my own extremely low Equifax score.

Equifax will, eventually, reply to your query although, in my experience, their response may make little sense and not answer your query.

CRAs can be a law unto themselves. 'This sector of the finance industry is now regulated by the FCA. This means that all agencies must be licensed by the FCA before they can operate. Although the FCA regulate them, they have no control nor are they entitled to scrutinise how credit scores and ratings are compiled'. (As that fact is taken from a third party site, I don't know if I'. allowed to paste a link to it).

Most lenders will tell a borrower, at the point of application, that they will be using data supplied by a CRA or CRAs to assess an application. So I find it perverse that anybody should advise you 'not to worry about it' when you notice a substantial change in your credit score which, I agree, reflects a change in your credit report.

In my own situation, I was surprised to have a loan application turned down late last year. Every year I check my Experian report and score and for the last three years, including my latest report from last week, I've scored well – even highly. (951 out of 991, up to 967 last week – classified as ‘Excellent’).
However my Equifax score from last week was 280 (classed as poor) out of a UK average of 380 with Excellent starting at 500+

The difference between the two reports is that while Equifax have what was a long contested debt that had gone past debt collectors and was listed in county court for a hearing as a ‘default’,  Experian made no reference to it whatsoever. In February of this year, the claimant Lowells (chasing a three-year old debt from EE), finally discontinued their court action and conceded (shortly before the first hearing date) that I didn’t owe then a penny. I would go further and say that I’ve never owed them a penny. And yet my Experian report, last updated in October 2019 for the creditor, Lowells, is so adversely affected by money I never owed. So I’ve now contacted Equifax to have their records corrected.
It’s laziness on the part of CRAs who sell our data and their analysis of it (correct or incorrect) to prospective lenders while putting the onus on borrowers, like you and me, to correct their flawed data.
Forget talk, stuff and nonsense about algorithms. No algorithm ever created itself. Behind every algorithm there’s a human being (or ten, or 100). It’s laziness, of the highest order, that stops any system from differentiating betwixt a defaulted debt and a contested one.

Information provided by CRAs to lenders should always be as correct, accurate and as up-to-date as possible. Such information can be life affecting and life changing to borrowers.
It’s a complete and utter farce that there’s no regulator to appeal to when CRAs get it so flagrantly and utterly wrong.

Best of luck and happy Easter!

D3xt3r5L4b

CRA’s report what is issued to them by lenders. 

If the data is “incorrect” then take it up with the lender. 

Another “my score is this and I couldn’t understand why I was rejected” post...