Credit Score damaged by energy switch

goya_2

I keep an eye on my credit score via Credit Karma and Experian and I’ve done everything I can to improve my score (which has been classed as “excellent” for the last 5+ yrs) when I checked last week my score had dropped and as a result I fell into the “Good” category.  I had a look and the reason for the drop was that I had “opened 2 accounts within the previous 6 months” I looked for these “accounts” and it transpires that because I switched Energy supplier to British Gas the credit reference agency count the transfer as 2 new accounts (1 gas & 1 electric). If this is correct procedure & considering we’re encouraged to  switch accounts regularly (with each switch counting as 2 new accounts) regular switching could have a hugely detrimental effect on your credit score in a short space of time. Should my energy switch be having such a detrimental effect on my score or can I challenge it.
Thanks 

cymruchris

Your score doesn't matter. It can go up. It can go down. Only you can see it. Nobody else - no lender - no bank - no loan company - no-one. It's there as a marketing gimmick, and although it gives a general indication of your credit history, it can be wildly inaccurate. Opening an account, closing an account, increasing the balance on an account, decreasing the balance on an account can all send the score flying in all directions. If you open no new accounts in the near future - it will no doubt slowly rise again - unless you spend on your credit card a bit more than usual - and it'll go down again. The important thing is your data and your history. Do you pay on time. Are all your accounts in good standing. Things like that are important. Not your score. 

(btw: You can search umpteen tens of hundreds of threads on here - all asking the same question - and all getting the same answer) 

MinuteNoodles

goya_2 said:

 If this is correct procedure & considering we’re encouraged to  switch accounts regularly (with each switch counting as 2 new accounts) regular switching could have a hugely detrimental effect on your credit score in a short space of time.

So what? Lenders don't use the mickey mouse score the CRAs generate anyway, they're only there for entertainment and to try to get you to apply for loans and credit cards through their website so they can get a kickback commission. Ever noticed how when you log on or they email you about a change in score it always follows the "Your credit score has changed, see what credit cards or loans you may be accepted for"?

Lenders use the contents, your credit utilisation, your payment history, how long you've had bank accounts, how long you've been at you address etc.

goya_2

Phew! That’s good to know, thank you both for your replies 👍🏻

D3xt3r5L4b

Switch as much as you like. Just ignore the “number” advising how “great” you’re doing. 

sourcrates

Please read the sticky post at the top of this forum.

PRAISETHESUN

I also noticed when I switched to BG that they appear as two separate accounts for electricity and gas. As long as they are managed correctly then everything will be fine - it might even work better in the long run as it'll show two accounts in good standing, which some lenders might see as being better than just the one!

jimbo26

judging by the number of people posting on here worrying about a fictitious score the CRAs are doing a blinding marketing job.