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

Oakeshott

Another two months on and my credit is still the same at ‘fair’. I agree with previous comments that it’s important not to put too much stock into it, but I would have thought surely by now my credit would have improved even slightly. Is this normal? 

cymruchris

Oakeshott said:

Another two months on and my credit is still the same at ‘fair’. I agree with previous comments that it’s important not to put too much stock into it, but I would have thought surely by now my credit would have improved even slightly. Is this normal? 

Very normal.

nyermen

Supporting others that have said the same - ignore it.  Your credit score is made up by the rating agencies.  The credit record is what matters. Almost every bank uses the record to determine their own score (how do I know? I've helped build some in the past and worked with many others who already had their own models...).  

The general "fair poor good" etc might have some meaning, but only because it'll highlight certain factors that will affect future credit such as recent applications (probably what is affecting yours - give it up to 6 months), bad payment history (missed payments etc), and so on.

If in doubt, get a copy of your record, and check everything is accurate. Then just give it a little time.

[Deleted User]

I opened 2 current accounts purely for switching bonuses, no overdraft and a couple of savings accounts, my "score" went from good to fair and is now back to good according to the emails from one of the CRAs, don't care which as I just delete them, I only have it on for alerts of new things appearing which I can check if I know about them or if it's worth a quick peek.

As nyermen says, lenders never see the gimmick "score", they all use either custom built scoring platforms, using data you will never see, or buy in scoring from the CRA which is different to the score you see. 

If you want to obsess over a number, feel free but keep in mind only you ever see that number 

MrsYa8

This is the exact same situation as me. Bought a house in Dec 21. Credit score went from being excellent down to fair.  Now I'm finding it near impossible to obtain any form of credit (soft searches state I'm not eligible.)  I have made  2 hard searches all come back declined. 

I have paid for checkmyfile to check over all reports and everything looks ok with a very good over all score. I know people on this forum say to take no notice of scores but I can't help myself. In 8 months, 2 hard searches, some utilities taken out or change of address and all payments on an existing credit card and mortgage payments paid off on time. 

I have now given up on trying to take out a loan and currently doing it the proper way of saving. But I'm just so curious to what has caused this inability to obtain credit. I have worked out a very quick debt to income ratio and less 30% is debt (incl mortgage payment.)

Ebe_Scrooge

MrsYa8 said:

Credit score went from being excellent down to fair.

I know people on this forum say to take no notice of scores but I can't help myself

Your credit score is genuinely meaningless.  Not only do lenders not use it - they can't even see it.

MrsYa8 said:

I have paid for checkmyfile to check over all reports

That was pointless - all the data is available from all three CRA's for free.

MrsYa8 said:

Bought a house in Dec 21. I have made  2 hard searches

In 8 months, 2 hard searches, some utilities taken out or change of address and all payments on an existing credit card and mortgage payments paid off on time.

This could well be the reason.  Changes in address generally upset lenders.  Also the fact that you've relatively recently bought a house means that your ability to service the (presumably increased) debt - in the form of a mortgage - will only recently have begun to show a stable, favourable pattern.  Added to that, lending criteria have become a lot stricter than they were pre-Covid.

Check all 3 of your credit reports for any adverse markers, make sure you're on the Electoral Roll, and that the CRAs show you as such.

In the absence of any negative markers on your files, I'd give it until about December until you should be reasonably successful in obtaining further credit.

MrsYa8 said:

I have now given up on trying to take out a loan and currently doing it the proper way of saving.

Eminently sensible.  If you can do without a loan, and are able to save up instead, it would be foolish to take on extra debt - and pay interest for the privilege - unnecessarily.

VohnnyJegas

What can you do?

Stop buying houses.

Dobbibill

Make sure you have updated your address with all banks, credit card companies and utilities etc that feed into your credit report. Make sure you have updated the electoral register then let time do the rest.