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  • FIRST POST
    • lizferris1984
    • By lizferris1984 23rd Feb 19, 8:50 PM
    • 71Posts
    • 17Thanks
    lizferris1984
    Why is my score this low? Please help!
    • #1
    • 23rd Feb 19, 8:50 PM
    Why is my score this low? Please help! 23rd Feb 19 at 8:50 PM
    Hi everyone,

    Just joined the MSE forum so I can get these concerns off my chest and see if anyone can help me! I have joined credit club, read advice on various websites. But I'm still baffled by my situation.

    I completely expect my score to be below average but it's way worse than this and keeps getting lower! I have no idea why!

    My score is almost as low as it can get. I have no CCJs or bankruptcies. I have 2 defaults (a couple of years old) - I am making regular payments on both defaulted accounts. I have no other unpaid debts besides these.

    Credit utilisation shows as the only issue on MSE credit club (I have good or ok marks on all other scoring areas). I found out a week ago, I had a credit card account still open that I thought was closed years ago. It was on a payment freeze (zero interest). Only found this out when I contacted the credit provider. I now have a new credit card for the account, and I am in process of clearing the balance.

    Since my defaults I've been accepted for a Very catalogue account and an O2 phone contract. I've also had a current account upgrade. I am employed, my debt to income ratio shows as good, I have had no missed payments in at least the past 3 years. My total debts amount to less than 1500 and my active credit limit is 675 of which I am using 60%. Making payments to lower this currently - most of it is on the credit card I thought was a closed account.

    I would expect my score to be below average. However I've recently been rejected for a current account switch (!!) & a balance transfer card specifically advertised for those with poor credit. I was also declined for 100 overdraft from my bank, they suggested I apply for the overdraft - I didn't ask for it. I am employed and have had zero issues with account management. And yet it was declined. Have never had any bounced payments and never been unauthorised overdrawn.

    I want to build credit for a house purchase - I am in the early stages of saving for a deposit & getting my budget in order to enable maximum savings.

    I have friends who have had defaults and they say they could still get credit with defaults showing, and it definitely didn't affect any bank account switches or overdraft applications. I also have a friend who is long term unemployed and yet he gets approved for overdrafts and credit cards. I'm starting to feel like Experian/Equifax think I'm someone I'm not!

    I am starting to feel very upset by this & feel like my best efforts are failing. What am I missing here? Is it normal to be refused basic banking facilities if you have defaults? Why is my score so incredibly low when cedit club says I'm good all areas besides the utilisation?

    Look forward to any insights that could help me,

    Liz
    Last edited by lizferris1984; 25-02-2019 at 10:01 PM.
Page 1
    • DCFC79
    • By DCFC79 23rd Feb 19, 9:04 PM
    • 35,376 Posts
    • 22,327 Thanks
    DCFC79
    • #2
    • 23rd Feb 19, 9:04 PM
    • #2
    • 23rd Feb 19, 9:04 PM
    No need to get upset, its just a score that only you can see (made up some say), lenders see your history.
    You tried clearscore ?
    Last edited by DCFC79; 23-02-2019 at 9:11 PM.
    • Gary_Dexter
    • By Gary_Dexter 23rd Feb 19, 9:07 PM
    • 7,001 Posts
    • 4,656 Thanks
    Gary_Dexter
    • #3
    • 23rd Feb 19, 9:07 PM
    • #3
    • 23rd Feb 19, 9:07 PM
    Your score isn’t a thing seen or used by lenders.

    To build a good credit history, get in the electoral roll, get a credit card or 2 (or more) and use them for your normal monthly purchases but pay them back in full after each statement.

    Get a mobile phone contract as well as these also report to the CRA’s.

    Don’t get upset or hung up over a number that has no bearings in the real world.
    • lizferris1984
    • By lizferris1984 23rd Feb 19, 9:45 PM
    • 71 Posts
    • 17 Thanks
    lizferris1984
    • #4
    • 23rd Feb 19, 9:45 PM
    • #4
    • 23rd Feb 19, 9:45 PM
    I have got a mobile phone contract, I am on the electoral roll. I have one credit card but as I said in my post I can't get accepted for more.

    It's not the number I'm upset about, it's the fact I'm not seen as trustworthy enough for basic current account facilities.

    And I'm wondering why that is...
    • lizferris1984
    • By lizferris1984 23rd Feb 19, 9:47 PM
    • 71 Posts
    • 17 Thanks
    lizferris1984
    • #5
    • 23rd Feb 19, 9:47 PM
    • #5
    • 23rd Feb 19, 9:47 PM
    I will look up clearscore. I already use Noddle & MSE Credit Club
    • HeCh
    • By HeCh 23rd Feb 19, 9:49 PM
    • 54 Posts
    • 23 Thanks
    HeCh
    • #6
    • 23rd Feb 19, 9:49 PM
    • #6
    • 23rd Feb 19, 9:49 PM
    The defaults, frozen interest (if it's reported as an arrangement to pay, AP marker, on your credit files) and high utilisation (the lower the better, 1-10% is optimal) will all reduce your score to varying degrees and for varying durations.

    This nice article gives some helpful examples and helpful suggestions: https://debtcamel.co.uk/credit-score-change/

    Overall, try not to worry or get upset - you can't change what has happened. Put right any information that is recorded incorrectly on your credit files, always pay everything on time and allow time for your responsible financial behaviour to filter through.
    • DCFC79
    • By DCFC79 23rd Feb 19, 9:56 PM
    • 35,376 Posts
    • 22,327 Thanks
    DCFC79
    • #7
    • 23rd Feb 19, 9:56 PM
    • #7
    • 23rd Feb 19, 9:56 PM
    I have got a mobile phone contract, I am on the electoral roll. I have one credit card but as I said in my post I can't get accepted for more.

    It's not the number I'm upset about, it's the fact I'm not seen as trustworthy enough for basic current account facilities.

    And I'm wondering why that is...
    Originally posted by lizferris1984
    You say you were rejected for a bank accout switch, who were you switching too ?
    Some banks might be more ok for someone in your situation.

    How old are the defaults ?
    Maybe its the defaults causing the issue, maybe not but its possible.
    Last edited by DCFC79; 24-02-2019 at 7:53 PM.
    • lizferris1984
    • By lizferris1984 23rd Feb 19, 10:02 PM
    • 71 Posts
    • 17 Thanks
    lizferris1984
    • #8
    • 23rd Feb 19, 10:02 PM
    • #8
    • 23rd Feb 19, 10:02 PM
    I was attempting to switch from HSBC to Co-Operative bank.

    I have a standard current account at HSBC (not a basic account). But they won't give me a small overdraft, so I tried the Co-Op. I thought I may not get the overdraft, but I was rejected for the account outright.

    The defaults are from late 2017. The accounts they concern were closed long before the dates on the defaults, but apparently I can't get the dates changed. The frozen credit card account did show as AP up until I unfroze it a couple of weeks ago.

    My score mysteriously dropped by around 20 points on Noddle even before any of this happened - all I'd done was get approved for a Very account. It dropped by 20 points and hasn't gone up again.

    Liz
    • Gary_Dexter
    • By Gary_Dexter 23rd Feb 19, 10:12 PM
    • 7,001 Posts
    • 4,656 Thanks
    Gary_Dexter
    • #9
    • 23rd Feb 19, 10:12 PM
    • #9
    • 23rd Feb 19, 10:12 PM
    You’re still focussing in the score.

    Stop looking at it and just look at the data on your files.

    What are you hoping to gain by switching accounts?
    • DCFC79
    • By DCFC79 23rd Feb 19, 10:33 PM
    • 35,376 Posts
    • 22,327 Thanks
    DCFC79
    I was attempting to switch from HSBC to Co-Operative bank.

    I have a standard current account at HSBC (not a basic account). But they won't give me a small overdraft, so I tried the Co-Op. I thought I may not get the overdraft, but I was rejected for the account outright.

    The defaults are from late 2017. The accounts they concern were closed long before the dates on the defaults, but apparently I can't get the dates changed. The frozen credit card account did show as AP up until I unfroze it a couple of weeks ago.

    My score mysteriously dropped by around 20 points on Noddle even before any of this happened - all I'd done was get approved for a Very account. It dropped by 20 points and hasn't gone up again.

    Liz
    Originally posted by lizferris1984
    The score dropped because you were approved for a Very account but you have worked this out.
    • lizferris1984
    • By lizferris1984 23rd Feb 19, 11:24 PM
    • 71 Posts
    • 17 Thanks
    lizferris1984
    Ok... I don't understand why getting accepted for credit would drop my score? I thought that only happened if I was rejected.

    What was I hoping to gain by switching accounts? I thought a different bank might give me a small overdraft.

    Should I conclude that it wouldn't matter which bank it was, because it's based on external scoring?

    Everyone keeps saying ignore the score but clearly it's not the score that bothers me, it's the fact I can't get basic facilities on a bank account and/or I'm viewed as untrustworthy by lenders.

    Not sure why it seems weird that this would concern me. The score (although not the most important thing) seems to reflect the general perception of me by lenders. Including my own bank, even though they think I manage my account well.

    Very confusing and not sure what to do next!
    Last edited by lizferris1984; 23-02-2019 at 11:29 PM.
    • lizferris1984
    • By lizferris1984 23rd Feb 19, 11:30 PM
    • 71 Posts
    • 17 Thanks
    lizferris1984
    Thanks very much to the person who recommended Clearscore!

    Just looking at it now, makes a lot more sense than Noddle.

    Cheers!
    • Gary_Dexter
    • By Gary_Dexter 23rd Feb 19, 11:38 PM
    • 7,001 Posts
    • 4,656 Thanks
    Gary_Dexter
    The score clearly bothers you as you mention it in every paragraph.

    Seriously - ignore it!

    What do you need an overdraft for?
    • Desmondo2016
    • By Desmondo2016 24th Feb 19, 12:14 AM
    • 18 Posts
    • 15 Thanks
    Desmondo2016
    Why do you need an overdraft? Seems like an unnecessary debt risk, could you just live within your means and not need one?
    • lizferris1984
    • By lizferris1984 24th Feb 19, 12:47 AM
    • 71 Posts
    • 17 Thanks
    lizferris1984
    I'm mentioning it because it's a tool to interpret how appealing you are to lenders.

    Can't believe how much criticism I'm getting for this. Although it's ironic as your assumption seems to be that if I have poor credit, I can't manage an overdraft. Surely that's more down to what my income is, rather than my credit report?

    Overdraft is to bridge gaps in cash flow due to an uneven pay structure.
    Last edited by lizferris1984; 24-02-2019 at 1:00 AM.
    • lizferris1984
    • By lizferris1984 24th Feb 19, 12:49 AM
    • 71 Posts
    • 17 Thanks
    lizferris1984
    There's been some really useful responses so far, but I'm also feeling like this is an unfriendly place to be! Hopefully I'm wrong. But I'm already feeling disrespected/judged and this is the first time I've posted. So it's not very encouraging to say the least.

    Fingers crossed it will get better.
    Last edited by lizferris1984; 24-02-2019 at 12:53 AM.
    • Sncjw
    • By Sncjw 24th Feb 19, 1:34 AM
    • 2,249 Posts
    • 1,367 Thanks
    Sncjw
    What is your income that may have something to do with rejection
    • DCFC79
    • By DCFC79 24th Feb 19, 8:11 AM
    • 35,376 Posts
    • 22,327 Thanks
    DCFC79
    I'm mentioning it because it's a tool to interpret how appealing you are to lenders.

    Can't believe how much criticism I'm getting for this. Although it's ironic as your assumption seems to be that if I have poor credit, I can't manage an overdraft. Surely that's more down to what my income is, rather than my credit report?

    Overdraft is to bridge gaps in cash flow due to an uneven pay structure.
    Originally posted by lizferris1984
    Should really get out of the overdraft.

    Why is the pay structure uneven ?

    Do you receive a min amount and some months its topped up with say bonuses ?
    • DCFC79
    • By DCFC79 24th Feb 19, 8:15 AM
    • 35,376 Posts
    • 22,327 Thanks
    DCFC79
    Thanks very much to the person who recommended Clearscore!

    Just looking at it now, makes a lot more sense than Noddle.

    Cheers!
    Originally posted by lizferris1984
    Clearscore take the data from Equifax
    Noddle is from Call credit

    I'm mentioning it because it's a tool to interpret how appealing you are to lenders.

    Can't believe how much criticism I'm getting for this. Although it's ironic as your assumption seems to be that if I have poor credit, I can't manage an overdraft. Surely that's more down to what my income is, rather than my credit report?

    Overdraft is to bridge gaps in cash flow due to an uneven pay structure.
    Originally posted by lizferris1984
    You could say its a tool to be used that way but not much can be read into it as the score will drop when you take out a Very account, or a mortgage which aren't bad things to do.

    Liz it isnt intentional I can assure you.
    Last edited by DCFC79; 24-02-2019 at 8:30 AM.
    • callistris
    • By callistris 24th Feb 19, 9:01 AM
    • 635 Posts
    • 305 Thanks
    callistris
    I would suspect the frozen credit card that was reporting to your credit files as 'AP' could have been a red flag regarding the overdraft. Now that you have got this changed, this will have a lesser impact as time goes by, same as the defaults will.

    If you don't apply for anymore credit for a while and keep all other borrowing good and paid on time, the score that is personal to you with the different credit reference agencies will get better over time. It takes a while but it will improve.

    Good luck with it all, you just need to be patient now.
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