Confused as to why my credit score is so low - help

klimny

I'm wanting to apply for a new credit card as my current one with 0% interest on spending has just run out. I just did the eligibility calculator for the top 0% interest cards and got '0% chance of acceptance' for all of them. So checked Clearscore and my credit score is 372 (out of 700), which according to their website is just within the 'poor' category (280-379). I've looked at all of the sections to see what could be making the score so low but can't fathom it... I only had one missed credit card payment back in early 2016 and everything else is above board (on the electoral register, addresses up to date, no old accounts still open, no unusual activity... Any got any suggestions as to what might be causing it?

Thanks in advance!

cymruchris

Your score is just an imaginary number that gives a very vague indication of creditworthiness based on the CRA's own measurements - the banks don't use it. You may find that you have 0 percent chance of getting a card based on factors such as income, residential status, payment history and current commitments. Say you have a current overall limit of £10k between your cards, and your current balance is £9.5k, and your income is £12k a year, and you've been paying minimum payments for 2 years - that would likely throw up a big red flag. Alternatively - if you had any existing limit of £100k, a balance of 0k, and an income of £2m, and pay your balance off in full every month - you might get different offers. It all depends on a wide array of data. Have you tried eligibility checkers on the banks own websites? If not, give that a try. If however you have a large balance, you may find that you don't qualify for a new card, and may have to focus on clearing down your debt rather than trying to continually shift it around. 

Fighter1986

Let's start by taking the score out of the equation. 

You were given a 0% chance of eligibility for all the balance transfer cards based on a soft search of your credit file. This is indeed indicative of a problem.

Possible causes include:

New accounts opened recently
Credit facilities near their limits
Overdraft in constant / regular use
More than one or two credit applications in the last six to twelve months 
Missed payments 
Defaults
CCJs
Adverse information on a financial associate's credit file
Recently having changed job or address
Owing a large amount overall in comparison to your salary

Thinking about all of the above, is there anything that sticks out?

Additionally, clear score show you your equifax credit file.

Credit Karma show you your Trans Union credit file

MSE Credit Club show you your Experian credit file.

All are free services and it's worth going through all three with a fine tooth comb.

Let us know how you get on  

MinuteNoodles

If you do manage to get a new 0% deal don't waste this lesson you're currently being taught and set up payments so that the balance is cleared by the end of the 0% deal because as you're learning there's no guarantee you're going to be able to shift the debt to 0% again.

klimny

Thanks for your replies everyone - I haven’t tried eligibility calculators on banks own websites yet so will definitely try that.

Regarding factors mentioned by Fighter1986, the only ones that stick out for me is a missed payment from early 2016 and that’s it! Nothing else on that list applies to me. 

I tried to do the MSE Credit Club but my address wasn’t available from the drop down based on my postcode (which is unusual, so I’ve emailed them about it). I’ll definitely try Credit Karma too!

I always pay the balance off in full and tbh I can’t remember how/ why I missed a payment 4 years ago but that’s the only possible thing that could be affecting it. Hopefully once I can check out the other two credit scores it might give me more clues as to what’s going on...

thanks again everyone!

[Deleted User]

Don't check the other two scores.  They're as useless as the one you already have.

Check the data on your files instead.

sassy_one

There is no such thing as a credit score or rating.

Fighter1986

klimny said:

Thanks for your replies everyone - I haven’t tried eligibility calculators on banks own websites yet so will definitely try that.

Regarding factors mentioned by Fighter1986, the only ones that stick out for me is a missed payment from early 2016 and that’s it! Nothing else on that list applies to me. 

I tried to do the MSE Credit Club but my address wasn’t available from the drop down based on my postcode (which is unusual, so I’ve emailed them about it). I’ll definitely try Credit Karma too!

I always pay the balance off in full and tbh I can’t remember how/ why I missed a payment 4 years ago but that’s the only possible thing that could be affecting it. Hopefully once I can check out the other two credit scores it might give me more clues as to what’s going on...

thanks again everyone!

Good stuff.

Do try to find a way to obtain your Experian report - you can also obtain your statutory report for free from their website directly, they send a letter out.

Experian are the most commonly searched credit reference agency for credit cards and you might have some incorrect data on there that doesn't appear on Equifax or TransUnion. If there are any errors or an account you forgot about appearing on your Experian file you can then correct it before applying elsewhere.

Alternatively you might find the Moneysupermarket credit card eligibility search tool shows you a couple of pre-approved offers when you take a look.

Good luck either way