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  • FIRST POST
    • ftahir192
    • By ftahir192 31st Dec 17, 5:49 PM
    • 2Posts
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    ftahir192
    Credit score dropped by ~200?
    • #1
    • 31st Dec 17, 5:49 PM
    Credit score dropped by ~200? 31st Dec 17 at 5:49 PM
    Hi,

    I've been using CreditClub religiously every month to keep an eye on my credit score, and I've been doing fine up till 22nd December, when it was last updated.

    A month ago I was told by my bank that I still had a student account that needed upgraded as I had graduated back in July. I made an appointment and this account, as well as a student credit card, was closed down. I found it odd that the credit card needed to be closed as well, but they insisted that it won't affect my credit score.

    I subsequently opened a new non-student bank account with the same bank (RBS), but did not open a new credit card with them as I found better deals elsewhere. I opened a Barclays Freedom credit card and was given an initial 600 allowance.

    Now my score has dropped after all this, stating 2 credit checks and 2 account closures, both closures which were not really my fault as far as I know. I understand that the 2 credit checks would have an influence. CreditClub now also states that my accounts are all relatively new, as my 2 long lasting accounts are now closed.

    Is there anything I can do to dispute these closures on my credit report, or would I just have to suck it up and accept it? If so, what can I do within the next 6 months to build my score back up?

    It's worth noting that there have been NO late payments on any accounts, ever. I've also done all the regular checks such as ensuring I'm registered to vote, my addresses are correct, etc.

    Any help/tips is much appreciated.
Page 1
    • binaryuniverse
    • By binaryuniverse 31st Dec 17, 6:18 PM
    • 685 Posts
    • 433 Thanks
    binaryuniverse
    • #2
    • 31st Dec 17, 6:18 PM
    • #2
    • 31st Dec 17, 6:18 PM
    It's irrelevant. Don't give it a second's thought.
    • zx81
    • By zx81 31st Dec 17, 6:23 PM
    • 17,216 Posts
    • 18,295 Thanks
    zx81
    • #3
    • 31st Dec 17, 6:23 PM
    • #3
    • 31st Dec 17, 6:23 PM
    Ignore the score and manage your credit responsibly. You have no issues.
    • ftahir192
    • By ftahir192 31st Dec 17, 6:26 PM
    • 2 Posts
    • 0 Thanks
    ftahir192
    • #4
    • 31st Dec 17, 6:26 PM
    • #4
    • 31st Dec 17, 6:26 PM
    Thanks for the replies. Does credit score itself not really mean all that much when applying for mortgages, etc (providing you're making your payments on time)?
    • zx81
    • By zx81 31st Dec 17, 6:28 PM
    • 17,216 Posts
    • 18,295 Thanks
    zx81
    • #5
    • 31st Dec 17, 6:28 PM
    • #5
    • 31st Dec 17, 6:28 PM
    It's not that they don't matter that much. It's that they don't matter at all.

    They're just provided to customers for entertainment purposes. A bit like horoscopes.

    Lenders don't see them or use them. They will just look at the data on your files.
    • binaryuniverse
    • By binaryuniverse 2nd Jan 18, 12:15 AM
    • 685 Posts
    • 433 Thanks
    binaryuniverse
    • #6
    • 2nd Jan 18, 12:15 AM
    • #6
    • 2nd Jan 18, 12:15 AM
    Thanks for the replies. Does credit score itself not really mean all that much when applying for mortgages, etc (providing you're making your payments on time)?
    Originally posted by ftahir192
    At best, it's a vague indicator as to how you're keeping your credit history in check. At worst it has people obsessing over the most inconsequential of things.

    A 'drop' in your 'score' means nothing to nobody except you. If you have had no defaults/IVAs/bankruptcy suddenly appear then it won't affect your ability to get credit.

    In the UK, no lender sees this 'score'. They base whether to lend you money on how you've kept your current credit accounts, your repayment history, how much credit you already have available and how much of that you're using, amongst other things. Funnily enough, all this is very nuanced, and how they use that data is different from lender to lender. A single 'score' would never be how a lender sees you, even if they did use it.

    I may as well say I give you 1100/1300 score. I'm also going to start my scoring system at 500.... cos why not? No-one would use that number. And frankly, it makes no sense when compared with the other credit scoring companies available. But why is the 1100 I given you more than the 700 you got from Experian? Because numbers. Getting the picture yet?

    If you're reading the last paragraph and thinking 'well none of that makes any sense' then congratulations. That's exactly how credit 'scores' work. They are genuinely meaningless and they to make you pay the credit agency more to 'improve' the imaginary number they have 'awarded' you. If want to improve the 1100 score I gave you, feel free to give me 13 a month, and I'll slowly increment it by 10 each month... but it won't affect your ability to get credit.
    • badmemory
    • By badmemory 2nd Jan 18, 5:34 AM
    • 1,706 Posts
    • 2,301 Thanks
    badmemory
    • #7
    • 2nd Jan 18, 5:34 AM
    • #7
    • 2nd Jan 18, 5:34 AM
    The sole real purpose of a CRA is to get you to spend your hard earned cash on something they supply, the actual value of which is zero. As in a drop in "rating" well if you pay for "this" it will improve & lo & behold magically it does - until the next time.
    • vacheron
    • By vacheron 2nd Jan 18, 9:24 AM
    • 831 Posts
    • 764 Thanks
    vacheron
    • #8
    • 2nd Jan 18, 9:24 AM
    • #8
    • 2nd Jan 18, 9:24 AM
    In October my MSE credit score was 999 showing V Good for both Credit Card and loan affordability.

    In November I applied (and was accepted for) three interest free credit cards.

    Because of this, my score dropped to 717 and my Credit Card and loan affordability score had dropped all the way from V Good to V Poor.

    I am still in the exact same financial situation as I was back then (I haven't spent a penny on the cards yet) I just have three searches and three (unused) new cards showing on my credit file.

    To show how irrelevant these credit scores are, I have since applied for a further two cards with my V Poor "rating" and was accepted for both. One of them actually has a higher credit limit than any of the first three I obtained when my score was "perfect").
    The rich buy assets.
    The poor only have expenses.
    The middle class buy liabilities they think are assets.
    Robert T. Kiyosaki
    • Bumbletumbler
    • By Bumbletumbler 6th Jan 18, 8:07 AM
    • 9 Posts
    • 1 Thanks
    Bumbletumbler
    • #9
    • 6th Jan 18, 8:07 AM
    • #9
    • 6th Jan 18, 8:07 AM
    In October my MSE credit score was 999 showing V Good for both Credit Card and loan affordability.

    In November I applied (and was accepted for) three interest free credit cards.

    Because of this, my score dropped to 717 and my Credit Card and loan affordability score had dropped all the way from V Good to V Poor.

    I am still in the exact same financial situation as I was back then (I haven't spent a penny on the cards yet) I just have three searches and three (unused) new cards showing on my credit file.

    To show how irrelevant these credit scores are, I have since applied for a further two cards with my V Poor "rating" and was accepted for both. One of them actually has a higher credit limit than any of the first three I obtained when my score was "perfect").
    But why have you applied for so many cards?
    • vacheron
    • By vacheron 6th Jan 18, 8:54 AM
    • 831 Posts
    • 764 Thanks
    vacheron
    But why have you applied for so many cards?
    Originally posted by Bumbletumbler
    Hi Bumbletumbler

    They are all used for stoozing.

    Our usual method is to use use a single 0% purchase card from Sainsburys for all our spending then when it fills up I apply for a 0% transfer card with 0% fees, move the Sainsburys balance to the new card, then start filling the Sainsburys card up again on purchases.... and repeat.

    However we are also in the process of purchasing a new kitchen which, when all said and done, will come to about 30K. After the price negotiations and haggling were finished the salesman let it slip that they would have no problem with credit card payments and did not charge any fees.

    After hearing this I applied for a further three new 0% purchase cards which gave me enough additional credit to cover about 80% of the kitchen. I always apply for cards in quick succession, that way when each do their credit search, it is too soon for the applications for the other cards to show up!

    A few weeks after I'd received these three cards I received a direct offer for another purchase card with a long 0% period so I applied for that too and was also successful and it ended up with a higher credit limit than any of the previous three cards.

    Then, while Christmas shopping on Amazon I applied for their Amazon card to get a 20 discount off my order, and that went through without an issue too.

    The last two cards were both granted when Experian was showing my credit card rating as "Very Poor". But to be honest I couldn't care less about the "score" or what is showing on my credit file at the moment as my plan was to milk as much free credit out of the system as I could before they got wise to me, and I think I have managed that! .

    Also, looking at the best buy tables, I don't think there is a decent card left that I haven't already got or a parent company I don't own at least one card from already.
    Last edited by vacheron; 06-01-2018 at 8:58 AM.
    The rich buy assets.
    The poor only have expenses.
    The middle class buy liabilities they think are assets.
    Robert T. Kiyosaki
    • nic_c
    • By nic_c 6th Jan 18, 12:14 PM
    • 1,522 Posts
    • 830 Thanks
    nic_c
    The last two cards were both granted when Experian was showing my credit card rating as "Very Poor". But to be honest I couldn't care less about the "score" or what is showing on my credit file at the moment as my plan was to milk as much free credit out of the system as I could before they got wise to me, and I think I have managed that! .
    Originally posted by vacheron
    I guess this is the point, it doesn't matter that there is a reason for you to apply for so many cards, but that the companies should be confident in you being able to repay them that they give you them. Rather than the fact that a company whose aim is to sell you products to improve the score they determine you have even though they don't offer credit nor the fact that their "v poor" score has not stopped you getting credit.

    CRA "you have a good credit rating, but you can subscribe and monitor it daily, just to keep an eye on it"
    Consumer: "No thanks, but I may as well apply for a few new credit cards"
    CRA " A few? Oh that might affect your score, do you want to subscribe to our credit service"
    Consumer "Er not now, thanks, I've just applied for a few cards and got accepted"
    CRA "Oh dear, I've put that in our magic number generator and it now says you have a V.Poor score ... We do have credit improver service that tracks your score and gives you tips on improving it, maybe you want to subscribe to that"
    Consumer "No, it's what's in the report not the score that matters anyway"
    CRA "But you can subscribe if ..."
    Consumer "Look my credit history is what is important not your score, and I may just apply for a couple more cards"
    CRA "But you have made recent applications that may have an impact on them and that is reflected in your lower score. We do have a credit improver service that ..."
    Consumer "Too late applied, AND have been accepted despite what your "score" says, so what do you say to that"
    CRA " ... We have a credit improver service that will help bring your score back up to help you in future."
    • cjmillsnun
    • By cjmillsnun 6th Jan 18, 12:17 PM
    • 602 Posts
    • 734 Thanks
    cjmillsnun
    30K for a kitchen? Do you live in a mansion? I just did our kitchen (and it isn't a small kitchen) for a sixth of that. If I had gone all out it would've been 15k tops.
    • vacheron
    • By vacheron 6th Jan 18, 1:13 PM
    • 831 Posts
    • 764 Thanks
    vacheron
    30K for a kitchen? Do you live in a mansion? I just did our kitchen (and it isn't a small kitchen) for a sixth of that. If I had gone all out it would've been 15k tops.
    Originally posted by cjmillsnun
    LOL, nowhere near a mansion, but the kitchen / diner will be about 6x7m when all the building work is finished.

    We want to do this once and get exactly what we want without compromise, so we've chosen an excellent local company who custom build all the cabinets in house.

    There will be about eight standard cabinets, six 600mm floor to ceiling units as an appliance wall and a 3200x1500mm Island. Once you add all the painted oak doors, inserts, larders, pull out racks and handles etc will cost about 12k.

    Add to that the quartz countertops and splashbacks at 4.5k (hint, never marry a gelologist, or if you do... never let her choose the stone she prefers!)

    Add a dozen or so Neff appliances / sinks /extractors etc which comes to 6k

    Finally, 2K fitting and the joy of 6k VAT to the taxman and there you go!

    Trust me, I never thought it would be so easy to justify 30K on a kitchen either.
    Last edited by vacheron; 06-01-2018 at 1:15 PM.
    The rich buy assets.
    The poor only have expenses.
    The middle class buy liabilities they think are assets.
    Robert T. Kiyosaki
    • nic_c
    • By nic_c 6th Jan 18, 1:22 PM
    • 1,522 Posts
    • 830 Thanks
    nic_c
    30K for a kitchen? Do you live in a mansion? I just did our kitchen (and it isn't a small kitchen) for a sixth of that. If I had gone all out it would've been 15k tops.
    Originally posted by cjmillsnun
    5K for a kitchen! I spent a quarter of that, and that included solid wood worktops and new appliances (like Bosch hob & oven, and lesser make for both integrated fridge and dishwasher). Then again I fitted it myself and got items on promotion/discount through my work at that point.

    Is this turning into a four yorkshiremen sketch type thread
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