Clearscore/Equifax reduced my credit score even though the bank removed the hard search!

PRAISETHESUN

Amanna said:

@Alex9384 thanks for that. I do check all three scores and credit reports every month, that's how I saw it drop. The other two went down in January when I first applied for the foreign currency account, and came back up a few months later, while Clearscore stayed up the whole time. I guess you're all right, it is very arbitrary.

The first hints that your "credit score" is meaningless is the fact that each of the CRAs give you different numbers and they all change independently of each other.

Checking monthly is perfect, but you need to look at your actual credit report and the data it contains, not the score number.

Amanna

@teachfast so what do they assess you on? There does seem to be a correlation with having a low score and limited access to credit, or higher interest rates if your application is successful. Or are you making a definitive distinction between your credit score and your credit report? If that's the case, I understand, though I typically treat them as being synonymous, because unless you have a default or CCJ, you can't improve or ruin one without the other.

[Deleted User]

They assess you on your credit history, income, indebtedness and so on, assessing you against their own criteria.

As you've seen, scores drop with any change, rather than necessarily with your credit worthiness. It's not a system that would work for anyone in the business of lending money.

Amanna

Deleted_User said:

They assess you on your credit history, income, indebtedness and so on, assessing you against their own criteria.

As you've seen, scores drop with any change, rather than necessarily with your credit worthiness. It's not a system that would work for anyone in the business of lending money.

Okay, that makes sense. Thanks.

[Deleted User]

Amanna said:

@teachfast so what do they assess you on? There does seem to be a correlation with having a low score and limited access to credit, or higher interest rates if your application is successful. Or are you making a definitive distinction between your credit score and your credit report? If that's the case, I understand, though I typically treat them as being synonymous, because unless you have a default or CCJ, you can't improve or ruin one without the other.

Correlation does not equal causation
Bankrupts start with 999. People with 999 get refused for good credit. People with 500 get approved.
All that matters is the data, all lenders score you using their own internal system from the data - that score you will 99.9999% never ever see and they will certainly never tell you how it works to stop people gaming the system. Or to put it another way, the gimmick score you see will never be used in any decision on finance, at best it's a sort of guide on what you might get or not but it has no guarantee at all that any score with mean you do or don't get credit.

sourcrates

Deleted_User said:

Amanna said:

@teachfast so what do they assess you on? There does seem to be a correlation with having a low score and limited access to credit, or higher interest rates if your application is successful. Or are you making a definitive distinction between your credit score and your credit report? If that's the case, I understand, though I typically treat them as being synonymous, because unless you have a default or CCJ, you can't improve or ruin one without the other.

Correlation does not equal causation

Phrase of the day methinks 

philveller

Amanna said:

Hi all, I hope you can help. I checked my credit scores today, to find out that my clearscore/Equifax had dropped by 30 points, because HSBC added and then immediately removed a hard search they had carried out in January, when I applied for a foreign currency account. My report shows both the addition and removal happened on the same day, yet my score still dropped. Can I challenge this, since it was clearly a mistake on HSBC's part, and they tried to make sure it didn't impact my score? My score has only just come out and won't update automatically for another 30 days. TIA for your advice!

I checked mine yesterday and it had dropped 99 points, as others say the score is meaningless but what was interesting from your post is the adding and removal of hard searches, they did this to me too and these are old searches in the BT case last July and the EON one in February, at the end of it I don't know if these searches are there or not.  
In my case I think Aqua yet again reducing my credit limit is why it went down so much, that and Newday apparently putting the account in dispute through me having the temerity to complain to them for reducing my limit, they reduced my limit by £600 last month for no good reason.
I have never paid them interest in the three years I have had the card as I always pay in full and I have never gone close to my limit so I guess they don't like me as a customer, on Clearscore the Aqua account shows a Zero Balance with a Dispute label on the more detailed accounts pages. 
The odd stuff though was this adding and removal of searches feels to me like some kind of systems issue at Equifax.
 

Amanna

philveller said:

Amanna said:

Hi all, I hope you can help. I checked my credit scores today, to find out that my clearscore/Equifax had dropped by 30 points, because HSBC added and then immediately removed a hard search they had carried out in January, when I applied for a foreign currency account. My report shows both the addition and removal happened on the same day, yet my score still dropped. Can I challenge this, since it was clearly a mistake on HSBC's part, and they tried to make sure it didn't impact my score? My score has only just come out and won't update automatically for another 30 days. TIA for your advice!

I checked mine yesterday and it had dropped 99 points, as others say the score is meaningless but what was interesting from your post is the adding and removal of hard searches, they did this to me too and these are old searches in the BT case last July and the EON one in February, at the end of it I don't know if these searches are there or not.  
In my case I think Aqua yet again reducing my credit limit is why it went down so much, that and Newday apparently putting the account in dispute through me having the temerity to complain to them for reducing my limit, they reduced my limit by £600 last month for no good reason.
I have never paid them interest in the three years I have had the card as I always pay in full and I have never gone close to my limit so I guess they don't like me as a customer, on Clearscore the Aqua account shows a Zero Balance with a Dispute label on the more detailed accounts pages. 
The odd stuff though was this adding and removal of searches feels to me like some kind of systems issue at Equifax.
 

Yeah, I've never seen that before either. I barely use my HSBC account. It's my old undergraduate account that I transitioned to a current account after I finished uni, but it basically serves as an overflow account now. Maybe I annoyed them by keeping it empty lol.

I always pay my cards off in full too, so I guess I need to watch out for them reducing my limit, too.

mozzauk

I have had the same happen to me and I know some have been complaining on the o2 forum about things reappearing, and mine is a complete mess with o2, Capital One and Metro Bank.... 

Strange thing is i pay my Credit Cards Off in Full, and like @philveller I had my limit cut and interest rate increased... 

Amanna

@mozzauk was it NewDay that cut your limit too? Did you follow it up with them? I have a cc with them, and they recently increased my limit but I haven't paid a penny in interest yet, so maybe they'll be reducing mine too.  It seems like a strategy they have.