Why has my credit rating shot up?

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Stoke
Stoke Posts: 3,182 Forumite
edited 20 April 2018 at 3:09PM in Credit file & ratings
Not that I'm particularly complaining, but I get my credit rating via ClearScore and Experian once a month. I take no notice of Experian, because I'm 999 and have been for years and it never seems to change, however my ClearScore has been stuck at 470 for well over a year........... this month it's flown up from 470 to 495. That's an increase of over 3%.... in a month?

There really isn't anything to shout about this month either, other than

- I took over sole proprietary of my house (Completion of Transfer of Equity)
- Paid £800 credit card bill which isn't unusual for me. I pay it off every month.

Is it just taking on the house? Or is it the fact I've disconnected my credit rating from my ex partner who had a particularly bad one? Are there any actual benefits to having a good credit rating in my position? Cheaper car insurance maybe? I own a car and I own a house (well a mortgage)......? I rarely take stuff on finance other than the house?

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  • National_Debtline
    National_Debtline Posts: 7,998 Organisation Representative
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    Hi Stoke,


    Credit files are quite complicated documents, your history is constantly influenced by many factors to give you your overall rating. Future lenders do not see the score generated by the credit reference agencies, they only see your history. Your history shows things such as whether or not you are on the electoral role, anyone you have financial associations with and, of course, your financial history.


    If you have filed a disassociation that may be the reason for an improved score, and it should help your file going forward, but, unfortunately, there is no way to know for certain.


    Laura
    @natdebtline
    We work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps
  • Nasqueron
    Nasqueron Posts: 8,928 Forumite
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    Credit scores are made up, ignore them
  • Stoke
    Stoke Posts: 3,182 Forumite
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    Thanks Laura. I really don't understand any of it, but obviously unlinking my account from hers will hopefully bring about some benefits. She had a default on her file (refused payment) and her credit rating was a bit battered having been rejected finance a few times. Nice to have one less problem in my life :D
  • Stoke
    Stoke Posts: 3,182 Forumite
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    Nasqueron wrote: »
    Credit scores are made up, ignore them

    Brilliant :D
  • [Deleted User]
    [Deleted User] Posts: 0 Newbie
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    Because the temperature has gone up.

    Once the temperature drops so will your "score" or "rating"
  • shortcrust
    shortcrust Posts: 2,697 Forumite
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    I couldn't tell you what my scores are these days but when I paid attention they used to jump around by way more than 3% each month for no apparent reason.
  • Nasqueron
    Nasqueron Posts: 8,928 Forumite
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    Stoke wrote: »
    Brilliant :D

    As above, credit scores are made up.

    They only exist so the credit agencies can sell you improvement services to improve the score that they themselves provide hence can easily bump up the score once you pay them money.

    A lender will NEVER judge an application based on the number Experian (or the other two) give you, they don't even see it. Your credit worthiness is based on your credit history and how the lender scores you.

    If Experian score you 999 but Halifax score you 1/10 then you won't get a loan from Halifax, so why not borrow from Experian as they rate you 999?
  • nic_c
    nic_c Posts: 2,929 Forumite
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    It's gone up to feed you addiction to credit scores. Humans are psychologically attracted to positive feedback, it increases the dopamine levels in your brain. Putting your score up makes you feel great, lowering it or it stagnating robs you of the dopamine fix and you feel the need to wonder why its changed and allows them to peddle ways to fix your impaired score. It's been used by the likes of advertisers and casinos for ages and even now being used by mobile app makers like instagram.
  • Stoke
    Stoke Posts: 3,182 Forumite
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    nic_c wrote: »
    It's gone up to feed you addiction to credit scores. Humans are psychologically attracted to positive feedback, it increases the dopamine levels in your brain. Putting your score up makes you feel great, lowering it or it stagnating robs you of the dopamine fix and you feel the need to wonder why its changed and allows them to peddle ways to fix your impaired score. It's been used by the likes of advertisers and casinos for ages and even now being used by mobile app makers like instagram.
    You're probably right......

    Ahh well.
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