Mortgage Credit score - experian

Conjon101

Hi all 

I’m looking for some advice please. 

I’m currently saving and looking to purchase a house at some point next year with my fiancée. With this in mind I have been really cautious with any payments; ensuring they’re all made on time. Today though, I received an email from Experian saying I have a new score, but to my surprise my score has dropped by 44 points. No ideas why. Really has got me down.

I’ve currently got a credit card and was looking to actually clear the balance (£1000) this week. 

Can anyone advise me if this is wise? I don’t want my score to decrease any more. 

I want to ensure that I have a good enough score next year when we make the application for a mortgage. 

Any advice would be great 

Thanks in advance 

[Deleted User]

Don't worry about the score.  It's not a real thing.

Clear the balance and make yourself more attractive to lenders.  The score will drop when you clear the debt, but that's fine. 

Conjon101

Thanks.

My only fear is that I drop out of the fair range on the score system. 

My plan is to carry out all my day to day spending over the next year on my credit card and pay it off monthly. Will this help? 

[Deleted User]

If you do, then it will be a good thing, as you'll have cleared the debt, making you more likely to get a mortgage. 

You need to choose between impressing Experian or impressing mortgage lenders.  As a clue, only one of those choices will lend you money.

Clearing your card each month is the easiest way of building or maintaining credit history.

Conjon101

That does make sense 

Thank you 

Willing2Learn

Hi Conjon101,

Are you checking your three credit files, to ensure that all recorded data is accurate?

Conjon101

There’s been no changes as far as I know. I’ve not applied for any credit. I’m a little scared to if I’m honest as I don’t want to jeopardise anything for next year. 

I’m not an Experian expert customer so not sure I can carry out checks? 

Willing2Learn

You need to check all three of your credit files, if you really want to be certain.  A statutory report is your right under legislation.  And it is free.   All of the data you read in your credit files needs to be fully accurate.  If it is not accurate, then you would exercise your right to complain.

https://www.experian.co.uk/consumer/statutory-report.html

https://www.equifax.co.uk/Products/credit/statutory-report.html 

https://www.transunionstatreport.co.uk/CreditReport/AboutYou  

Fighter1986

As Zx81 has alluded to, the "score" Experian give you is largely useless. No lenders see this score.

Lenders only see the raw data on your credit file and use this to make their decision based on their own criteria - and the criteria varies from lender to lender. There's no such thing as one score fits all.

If you have the option of keeping your credit card balance low and clearing it in full, do this - Experian magic number generator be damned. It's the best way to handle a credit card and any mortgage underwriter will agree. 

You can sign up to the Money Saving Expert Credit Club to get access to your full Experian credit report free of charge if you want to check it is accurate.