My credit rating has taken a major hit after first house purchase. What can I do?

Oakeshott

My partner and I bought a house in Feb. Around the time our mortgage funds were transferred my credit rating dropped from 'Excellent' (in Experian) to 'Good'. Then about a month after we moved in it dropped again to 'Fair'. Thankfully this month it didn't drop any further (it stayed 'Fair'), but I would really like to have better credit!

What could have caused the drop? I understand taking out a mortgage is a big factor, but I didn't take any further credit besides the standard broadband and utilities contracts (I'm not sure if they all even count as credit anyway). 

Also, what's the best way to learn what caused it for sure? Experian has a 'Credit Expert' service. Would you guys recommend that, or something else? 

Lastly, what's the best way to improve it quickly, or will it just go back up in time?

Thanks. 

[Deleted User]

You don't need to do anything. Your scores drop with any change, good or bad. It's nothing to worry about, as the scores have no impact on your ability to get credit. 

On a practical note, you may find it more difficult to get credit for a short period while your new address filters through and the taking on of the new mortgage, but there is nothing your can do about that.

Don't both signing up for an score analysis or improvement services as it's simply snake oil.

martinbainbridge1975

don't need to do anything just pay your bills, the score will recover in time

DE_612183

you have taken out new contracts ( utilities ), you have also changed your address and electoral register - these things affect your credit score but will not adversely affect you getting credit.

The score is just a reflection of data - it doesn't mean that you wont be able to apply for credit.

[Deleted User]

The score is a reflection of how the CRAs rate you it is NOTHING to do with how lenders see you. They do not see the score and the score is never used in any lending decision.

Oakeshott

Deleted_User said:

The score is a reflection of how the CRAs rate you it is NOTHING to do with how lenders see you. They do not see the score and the score is never used in any lending decision.

But will the lenders also view me as a credit risk, based on their own criteria just because I bought this house? 

DE_612183

Oakeshott said:

Deleted_User said:

The score is a reflection of how the CRAs rate you it is NOTHING to do with how lenders see you. They do not see the score and the score is never used in any lending decision.

But will the lenders also view me as a credit risk, based on their own criteria just because I bought this house? 

Only in so much as they take into account how much you pay each month and how much you have incoming.

[Deleted User]

Oakeshott said:

Deleted_User said:

The score is a reflection of how the CRAs rate you it is NOTHING to do with how lenders see you. They do not see the score and the score is never used in any lending decision.

But will the lenders also view me as a credit risk, based on their own criteria just because I bought this house? 

Plenty of people get credit with mortgages if they have previous good credit history, just leave it a few months for bills and electoral register to update

DCFC79

Oakeshott said:

Deleted_User said:

The score is a reflection of how the CRAs rate you it is NOTHING to do with how lenders see you. They do not see the score and the score is never used in any lending decision.

But will the lenders also view me as a credit risk, based on their own criteria just because I bought this house? 

Maybe maybe not, no one will know the criteria lenders use.
IF there is any change to your risk, it wont last for long.

longjohnjohnson

Oakeshott said:

Deleted_User said:

The score is a reflection of how the CRAs rate you it is NOTHING to do with how lenders see you. They do not see the score and the score is never used in any lending decision.

But will the lenders also view me as a credit risk, based on their own criteria just because I bought this house? 

You have an additional obligation, but realistically most people have to pay to live somewhere.  You also now have an asset which they could, in theory, get a charging order on if you default.

Overall owning a house is a positive thing as far as your creditworthiness goes.

This is a message to you and everyone else who pays attention to the CRAs.  They do not lend you money, please stop letting them make you tie yourselves in knots trying to please them.  Their opinion is not particularly relevant and can be outright damaging to your mental health and your finances.

simon_or

Nothing to worry about at all OP. All that matters is that you are up to date on your payments on all your credit accounts. The "credit-rating" doesn't really matter.