Credit score plummeted with no reason?

MoonChild91

Hi everyone,
I've just checked my monthly ClearScore report and found my credit score has dropped by 104 points in the last month with no explanation. The only recent change in anything has been that I have a new debit card as the old one expired, but I have had no emails about missed payments and there is nothing on my report to suggest this. I also haven't moved house or had any new searches for loans etc that would explain this (in fact when I last took out credit as a mobile contract my score dropped much less than this!). I have no CCJs, recent closed accounts, or any credit/store cards. Could a new card affect my score this way, or have ClearScore possibly made a mistake?

Hasbeen

MoonChild91 said:

Hi everyone,
I've just checked my monthly ClearScore report and found my credit score has dropped by 104 points in the last month with no explanation. The only recent change in anything has been that I have a new debit card as the old one expired, but I have had no emails about missed payments and there is nothing on my report to suggest this. I also haven't moved house or had any new searches for loans etc that would explain this (in fact when I last took out credit as a mobile contract my score dropped much less than this!). I have no CCJs, recent closed accounts, or any credit/store cards. Could a new card affect my score this way, or have ClearScore possibly made a mistake?

Have a read here: How to improve your credit score - MoneySavingExpert

Your credit score in numbers is utterly meaningless. It is not used or seen by anyone apart from you, as a marketing gimmick.

Check your credit report for free at the 3 leading agencies.  Credit report: Check your credit score for free - MSE (moneysavingexpert.com)

DCFC79

MoonChild91 said:

Hi everyone,
I've just checked my monthly ClearScore report and found my credit score has dropped by 104 points in the last month with no explanation. The only recent change in anything has been that I have a new debit card as the old one expired, but I have had no emails about missed payments and there is nothing on my report to suggest this. I also haven't moved house or had any new searches for loans etc that would explain this (in fact when I last took out credit as a mobile contract my score dropped much less than this!). I have no CCJs, recent closed accounts, or any credit/store cards. Could a new card affect my score this way, or have ClearScore possibly made a mistake?

Don't worry about your score, just make sure your history is correct as that's all that matters.

cymruchris

It'll go back up again next month - then down - then up - if only it could go sideways - it would. Mine dropped by nearly 3 figures last month - and went up by the same amount this month. No material changes at all. As long as the data on your history is correct - there's nothing to be alarmed about. 

[Deleted User]

My Credit Karma one is up 11 points, Clear Score up 13 points and MSE Credit Club has been 999 since I signed up

Remarkable

pecuniam_hominem

Hasbeen said:

Your credit score in numbers is utterly meaningless. It is not used or seen by anyone apart from you, as a marketing gimmick.

Nonsense. The score is an estimate based on your payment history, and indicates how likely you are to be accepted for credit.

Sure, it doesn't match the algorithm the lenders use, but it does do essentially the same thing, looks at payment history and other factors.

I agree some people treat it as gospel, but you have other people on here like you, suggesting credit scores have no use. They do.

2021BJ

pecuniam_hominem said:

Hasbeen said:

Your credit score in numbers is utterly meaningless. It is not used or seen by anyone apart from you, as a marketing gimmick.

Nonsense. The score is an estimate based on your payment history, and indicates how likely you are to be accepted for credit.

Sure, it doesn't match the algorithm the lenders use, but it does do essentially the same thing, looks at payment history and other factors.

I agree some people treat it as gospel, but you have other people on here like you, suggesting credit scores have no use. They do.

Until you hear of bankrupts getting 999 scores, or people with impeccable credit files getting very low scores, or people being told off for not having mortgages or £15000 in credit card limits and then it becomes meaningless again.

Is your high score an error? Is your low score an error?  Who knows.

Edit:  And I forgot one of the biggest issues with these scores.  All of these scores are generated without one of the biggest pieces of information that lenders use when you apply for credit;  your income.  Without knowing what your income is, a lot of the data becomes meaningless.  

sourcrates

pecuniam_hominem said:

Hasbeen said:

Your credit score in numbers is utterly meaningless. It is not used or seen by anyone apart from you, as a marketing gimmick.

Nonsense. The score is an estimate based on your payment history, and indicates how likely you are to be accepted for credit.

Sure, it doesn't match the algorithm the lenders use, but it does do essentially the same thing, looks at payment history and other factors.

I agree some people treat it as gospel, but you have other people on here like you, suggesting credit scores have no use. They do.

Quite a coincidence then that a lot of CRA`s are also credit brokers, licenced to sell financial products.

I wonder what possible incentive they could offer in order to drum up business ?

MoonChild91

pecuniam_hominem said:

Hasbeen said:

Your credit score in numbers is utterly meaningless. It is not used or seen by anyone apart from you, as a marketing gimmick.

Nonsense. The score is an estimate based on your payment history, and indicates how likely you are to be accepted for credit.

Sure, it doesn't match the algorithm the lenders use, but it does do essentially the same thing, looks at payment history and other factors.

I agree some people treat it as gospel, but you have other people on here like you, suggesting credit scores have no use. They do.

Thank you, this is what has been bothering me as I'm looking to move house soon and know my credit will be checked by any future landlord. Whilst I know that credit scores fluctuate and aren't always a true reflection of your financial stability I was concerned that something had caused it to drop so dramatically that would also indicate something wrong in my credit file and hinder being accepted for rent. 

cymruchris

MoonChild91 said:

pecuniam_hominem said:

Hasbeen said:

Your credit score in numbers is utterly meaningless. It is not used or seen by anyone apart from you, as a marketing gimmick.

Nonsense. The score is an estimate based on your payment history, and indicates how likely you are to be accepted for credit.

Sure, it doesn't match the algorithm the lenders use, but it does do essentially the same thing, looks at payment history and other factors.

I agree some people treat it as gospel, but you have other people on here like you, suggesting credit scores have no use. They do.

Thank you, this is what has been bothering me as I'm looking to move house soon and know my credit will be checked by any future landlord. Whilst I know that credit scores fluctuate and aren't always a true reflection of your financial stability I was concerned that something had caused it to drop so dramatically that would also indicate something wrong in my credit file and hinder being accepted for rent. 

Any property that rent where a credit reference check is required - won't see your score - only you see that.

As long as the information is correct - there's nothing to worry about.

They don't have access anyway to all the detailed ins and outs of your report - just summaries such as whether you have CCJ's or bankruptcies. 

2021BJ

MoonChild91 said:

pecuniam_hominem said:

Hasbeen said:

Your credit score in numbers is utterly meaningless. It is not used or seen by anyone apart from you, as a marketing gimmick.

Nonsense. The score is an estimate based on your payment history, and indicates how likely you are to be accepted for credit.

Sure, it doesn't match the algorithm the lenders use, but it does do essentially the same thing, looks at payment history and other factors.

I agree some people treat it as gospel, but you have other people on here like you, suggesting credit scores have no use. They do.

Thank you, this is what has been bothering me as I'm looking to move house soon and know my credit will be checked by any future landlord. Whilst I know that credit scores fluctuate and aren't always a true reflection of your financial stability I was concerned that something had caused it to drop so dramatically that would also indicate something wrong in my credit file and hinder being accepted for rent. 

And that's why these scores are complete nonsense. Your score can drop, or go up for seemingly no reason.

Since people basically need to go over their credit report every month to make sure the score is correct you might as well ignore it, you're doing all the work the score is supposed to do away with anyway.