Martin Lewis: Why you shouldn't worry too much about your credit score

edited 14 June at 11:49AM in Martin's Blogs & Appearances & MoneySavingExpert in the News
5 replies 180 views
MSE_PetarMSE_Petar MSE Staff
141 Posts
Part of the Furniture 10 Posts Name Dropper
MSE Staff
This is the discussion to link on the back of Martin's blog. Please read the blog first, as this discussion follows it.
Please click 'post reply' to discuss below.

Replies

  • ShenstoneShenstone Forumite
    8 Posts
    Second Anniversary First Post
    I realised how little they meant when having cleared our mortgage it went down and the biggest negative factor was that we did not have an active mortgage. At my age (undefined, but not young) having a mortgage is not a positive thing IMO 
  • TerrancetheCatTerrancetheCat Forumite
    1 Post
    First Post
    MoneySaving Newbie
    I also realised they were not as important as it could be, because the scores are anywhere between 6 weeks and 3 months out of date.  I cleared a loan, but it did not show for over 2 months.  As I was concerned, I sent off emails to ask why, I got back that it takes a minimum of 6 weeks to update. Not great when trying to keep on top of finacnes.
  • FarfetchFarfetch Forumite
    2K Posts
    1,000 Posts Name Dropper
    ✭✭✭✭
    I also realised they were not as important as it could be, because the scores are anywhere between 6 weeks and 3 months out of date.  I cleared a loan, but it did not show for over 2 months.  As I was concerned, I sent off emails to ask why, I got back that it takes a minimum of 6 weeks to update. Not great when trying to keep on top of finacnes.

    Did you read the article? The score is a gimmick, no lender ever sees it, it is never a factor in any credit application. Your live report is updated very quickly, the free one takes longer. Just ensure your record is correct and ignore the score - if your loan is paid off, then it'll show that immediately to anyone doing a credit check, even if not immediately on your report.

    He who rejects change is the architect of decay. The only human institution which rejects progress is the cemetery.

    -Harold Wilson


  • phillwphillw Forumite
    4.3K Posts
    Eighth Anniversary 1,000 Posts Name Dropper
    ✭✭✭✭
    Farfetch said:
    Did you read the article?
    Yes.

    Big drops however should be taken seriously. It's a decent indication that your data has changed, suggesting you've committed a real credit sin such as missing a payment, going over your limit or defaulting.

  • ThisnotThatThisnotThat Forumite
    436 Posts
    100 Posts Name Dropper
    ✭✭
    phillw said:
    Farfetch said:
    Did you read the article?
    Yes.

    Big drops however should be taken seriously. It's a decent indication that your data has changed, suggesting you've committed a real credit sin such as missing a payment, going over your limit or defaulting.

    Meanwhile bankrupts are getting 999 scores.

    It might be an indication you've done something wrong, equally it could be another CRA brain fart.

    Learn how to interpret your file and ignore the scores.
Sign In or Register to comment.
Latest MSE News and Guides

Energy price cap could be extended beyond 2023

New plans have just been announced by the Government

MSE News

Cheap contents insurance for tenants

DON'T assume your landlord covers you

MSE Guides

Summer sizzlers round-up

Incl £2ish sun cream & £1.50 disposable BBQs

MSE Deals