Credit score dropped? 28 November 2021 at 6:04PM in Credit file & ratings 4 replies 221 views

Daveinlincoln

I’ve only ever checked my credit score on Experian and I’ve always had a score of 999 . I’m 55 now and have had that score for decades.
I sold my house and downsized in order to pay off my mortgage and be debt free.
The following month after doing that my score dropped to 620 !
I don’t need to borrow anything but I do feel a little miffed about this.
Any ideas why a drop of this amount?

eskbanker

Because the algorithms used to make up these meaningless numbers are very sensitive to any changes, even those that you'd think would be positive, but don't waste any time thinking about it, as it really doesn't matter to anyone....

MEM62

Daveinlincoln said:

The following month after doing that my score dropped to 620 !
I don’t need to borrow anything but I do feel a little miffed about this.

Miffed? Why?  It is a random number produced for entertainment purposes only.  It has zero impact on your life.   

Daveinlincoln said:

Any ideas why a drop of this amount?

Nope.  

emmajones1976

You had that score for decades? Well done. A shame it meant absolutely nothing.

ManyWays

Having a mortgage is seen as good by lenders wanting to assess your creditworthiness. Having paid off your mortgage is the problem here. Of course it is a stupid system that regards someone who owns all their house as being less credit worthy than someone who has a mortgage, but there we are...

If you are ever likely to want to borrow (new conservatory? new car? new roof?) then it is worth having a credit card and using it every month and repaying it in full every month. If you won't, then these reports and the score are useless.