Sensible Credit Card use - but Negative Score Impact

Elieille

Just over a year ago I was near bankrupt. I’ve now managed to turn things around and I’m debt free and trying to save every month.

I have a default on my credit score (for £16!! ) which I’m disputing and hoping will be erased in the next few months. 

Also, I’m trying to increase my credit score by using my credit card sensibly... using a small amount each month and then paying the balance in full the next.
I always thought that this would help my credit score as it shows responsible use, however according to my most recent credit score update it’s made it drop! 

I can’t understand why this is happening? 

dr_adidas01

Elieille said:

Just over a year ago I was near bankrupt. I’ve now managed to turn things around and I’m debt free and trying to save every month.

I have a default on my credit score (for £16!! ) which I’m disputing and hoping will be erased in the next few months. 

Also, I’m trying to increase my credit score by using my credit card sensibly... using a small amount each month and then paying the balance in full the next.
I always thought that this would help my credit score as it shows responsible use, however according to my most recent credit score update it’s made it drop! 

I can’t understand why this is happening? 

You might want to read the sticky on this part of the forum that says “What your credit score really means” The number you see means Jack sh*t which you’ll find out more about by reading the afore mentioned sticky. 

Dellgrad12

Ignore the score. It is only seen by you and the credit reference agency. Lenders don’t use that score and have their own scoring systems that all differ.

Just focus on the credit history. Using your card in this way will be helping build positive payment data.

Elieille

Oh my!! I’ve just seen the major typo in the topic (faceplant!) that’ll teach me to multi task!! 

I of course meant ‘negative’ - although my phone clearly thought otherwise! 

But thank you for your comments so far... 

cymruchris

The score is nothing but a vague indicator. Don't obsess with it - as only you see it. You're on the right track - keep doing what you're doing, and that'll continue to build a positive credit history, which is more important than a score that goes up and down depending as to whether the sun's out or it's a bit windy.