Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • ClaireC1
    • By ClaireC1 9th Jan 18, 9:16 PM
    • 2Posts
    • 1Thanks
    ClaireC1
    Paid all of my debts and my credit rating dropped 100 points..why???
    • #1
    • 9th Jan 18, 9:16 PM
    Paid all of my debts and my credit rating dropped 100 points..why??? 9th Jan 18 at 9:16 PM
    Hi all,

    I have spend the last 4 years paying all of my debts off (credit cards/overdraft/store cards), around 12,000. I made the final payments on 2 accounts last month and the accounts were closed, my credit score dropped 100 points in 2 months. It wasn't the best to start with, it was in the low good range before and but now I have no debt other than my mortgage but it is now poor.

    How is it possible that I am worse off now than I was with all of the debt? I dont understand. Im so disappointed!
Page 1
    • Gary_Dexter
    • By Gary_Dexter 9th Jan 18, 10:12 PM
    • 1,331 Posts
    • 774 Thanks
    Gary_Dexter
    • #2
    • 9th Jan 18, 10:12 PM
    • #2
    • 9th Jan 18, 10:12 PM
    You're not worse off.

    Your score is fictitious and made up.

    The only thing that matters is the data and history on your file.
    • Carrot007
    • By Carrot007 9th Jan 18, 10:14 PM
    • 1,238 Posts
    • 1,061 Thanks
    Carrot007
    • #3
    • 9th Jan 18, 10:14 PM
    • #3
    • 9th Jan 18, 10:14 PM
    Though to think about it. Because you now have no credit so look like someone that does not use credit or pays it off quickly so won't make a company money.

    But since whereever you go the score from won't lend you anything it's not their view that counts.
    • zx81
    • By zx81 9th Jan 18, 10:16 PM
    • 17,287 Posts
    • 18,403 Thanks
    zx81
    • #4
    • 9th Jan 18, 10:16 PM
    • #4
    • 9th Jan 18, 10:16 PM
    I have loads of spare points.

    I'll send you some.
    • Thrugelmir
    • By Thrugelmir 9th Jan 18, 11:04 PM
    • 58,979 Posts
    • 52,305 Thanks
    Thrugelmir
    • #5
    • 9th Jan 18, 11:04 PM
    • #5
    • 9th Jan 18, 11:04 PM
    You closed your accounts. Anybody viewing your record won't know why. Will soon recover.
    Financial disasters happen when the last person who can remember what went wrong last time has left the building.
    • tykesi
    • By tykesi 10th Jan 18, 9:04 AM
    • 1,944 Posts
    • 2,724 Thanks
    tykesi
    • #6
    • 10th Jan 18, 9:04 AM
    • #6
    • 10th Jan 18, 9:04 AM
    These CRAs really have got people hook line and sinker haven't they? The number of threads on here from people who have clearly believed the hype is staggering and this is just a small portion of the population.

    I often think it gets boring reading the "ignore your score" mantra which comes out on all these threads but it absolutely needs saying until it starts sinking in.
    • ClaireC1
    • By ClaireC1 10th Jan 18, 10:48 AM
    • 2 Posts
    • 1 Thanks
    ClaireC1
    • #7
    • 10th Jan 18, 10:48 AM
    • #7
    • 10th Jan 18, 10:48 AM
    Thanks all for the responses.

    I am not so much hung up on the number score more the impact of it dropping. I am looking at getting a buy to let mortgage (hence clearing the debt) and had done some soft searches about a year ago with a good rating which were all approved, I have done them now having cleared all the debt and they are declined.
    • Gary_Dexter
    • By Gary_Dexter 10th Jan 18, 10:50 AM
    • 1,331 Posts
    • 774 Thanks
    Gary_Dexter
    • #8
    • 10th Jan 18, 10:50 AM
    • #8
    • 10th Jan 18, 10:50 AM
    Thanks all for the responses.

    I am not so much hung up on the number score more the impact of it dropping. I am looking at getting a buy to let mortgage (hence clearing the debt) and had done some soft searches about a year ago with a good rating which were all approved, I have done them now having cleared all the debt and they are declined.
    Originally posted by ClaireC1
    As above - there is no impact on it dropping.

    No one sees it but you are the CRA's - lenders do not, and will have their own internal scoring systems based on the data on your files.
    • zx81
    • By zx81 10th Jan 18, 10:52 AM
    • 17,287 Posts
    • 18,403 Thanks
    zx81
    • #9
    • 10th Jan 18, 10:52 AM
    • #9
    • 10th Jan 18, 10:52 AM
    It's really nothing to worry about. Credit scores are largely fictional and react negatively to change. You've paid off debt, so the score drops.

    Lenders, on the other hand, will see you as lower risk.

    To maintain a credit history, consider getting a card and using it regularly and clearing in full each month.

    Check all three of your files to check the information is correct on them all.

    And never ever take notice of a CRA score, from any of them.
    • MEM62
    • By MEM62 10th Jan 18, 11:08 AM
    • 1,610 Posts
    • 1,231 Thanks
    MEM62
    Thanks all for the responses.

    I am not so much hung up on the number score more the impact of it dropping. I am looking at getting a buy to let mortgage (hence clearing the debt) and had done some soft searches about a year ago with a good rating which were all approved, I have done them now having cleared all the debt and they are declined.
    Originally posted by ClaireC1
    Paying off your debts will not have caused the declines.
    • Gary_Dexter
    • By Gary_Dexter 10th Jan 18, 11:36 AM
    • 1,331 Posts
    • 774 Thanks
    Gary_Dexter
    They would have been declined as the debts are still showing on your files.

    And will do for 6 years
    • Blackbeard of Perranporth
    • By Blackbeard of Perranporth 10th Jan 18, 12:10 PM
    • 5,114 Posts
    • 30,702 Thanks
    Blackbeard of Perranporth
    The score is only used to scare people?
    Commemorate Celebrate Inspire
    #RAF100 A century of service!
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

307Posts Today

3,762Users online

Martin's Twitter
  • Ah these care free days of watching #ENG score 5 goals in the first half of a World Cup match. It reminds me of... Never.

  • Then it should be. It's not some accident. It's deliberate grappling https://t.co/UxVTuUSNio

  • Penalty yes but time someone was sent off for these wrestling moves #WorldCup

  • Follow Martin