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  • FIRST POST
    • msw18
    • By msw18 9th Mar 18, 2:36 PM
    • 3Posts
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    msw18
    New credit has lowered my credit score
    • #1
    • 9th Mar 18, 2:36 PM
    New credit has lowered my credit score 9th Mar 18 at 2:36 PM
    Hello all


    I have recently taken out car finance (of around 25,000) - I previously had car finance of around 7000.


    Other than that I have no long-term debt and my only other short term debt amounts to 1,000.


    Before I took out the car finance I had a "good" credit score, and now after taking out the finance it has dropped to the higher end of "poor". Will this right itself soon and is it only because its new and a hard credit check has just been done???


    I have never missed a payment on anything and all my other points are good, on the electoral role etc etc any help would be appreciated.


    Thank you
Page 1
    • zx81
    • By zx81 9th Mar 18, 2:38 PM
    • 16,813 Posts
    • 17,816 Thanks
    zx81
    • #2
    • 9th Mar 18, 2:38 PM
    • #2
    • 9th Mar 18, 2:38 PM
    The credit scores are made up and not related to your credit worthiness.

    Changes such as opening a card, closing a card, taking on debt, paying off debt, will all lower the score. Ignore it.

    Just be aware that lenders will factor in your new debt when assessing you for affordability in the future.
    • msw18
    • By msw18 9th Mar 18, 2:45 PM
    • 3 Posts
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    msw18
    • #3
    • 9th Mar 18, 2:45 PM
    • #3
    • 9th Mar 18, 2:45 PM
    Ok thanks, so will it right itself in a few months?


    Just conscious that one month after the new credit it has gone from good to poor and this can be the only reason?
    • zx81
    • By zx81 9th Mar 18, 2:47 PM
    • 16,813 Posts
    • 17,816 Thanks
    zx81
    • #4
    • 9th Mar 18, 2:47 PM
    • #4
    • 9th Mar 18, 2:47 PM
    It may, or it may drop further. It's entirely meaningless.

    The only thing that matters is your credit history and how lenders interpret it.
    • msw18
    • By msw18 9th Mar 18, 3:56 PM
    • 3 Posts
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    msw18
    • #5
    • 9th Mar 18, 3:56 PM
    • #5
    • 9th Mar 18, 3:56 PM
    So as long as I have made my repayments I'm ok?


    Thanks for your help
    • zx81
    • By zx81 9th Mar 18, 4:41 PM
    • 16,813 Posts
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    zx81
    • #6
    • 9th Mar 18, 4:41 PM
    • #6
    • 9th Mar 18, 4:41 PM
    Ok for what? What are you looking to achieve? Is there a certain lender and product you want to apply for?
    • stehouk
    • By stehouk 9th Mar 18, 7:28 PM
    • 87 Posts
    • 31 Thanks
    stehouk
    • #7
    • 9th Mar 18, 7:28 PM
    • #7
    • 9th Mar 18, 7:28 PM
    My credit score is up and down like a yoyo, it has been stable on moneysaving credit club but clearscore and noddle it is up and down, i ignore it anyway.
    • Tarambor
    • By Tarambor 10th Mar 18, 2:32 PM
    • 2,840 Posts
    • 2,057 Thanks
    Tarambor
    • #8
    • 10th Mar 18, 2:32 PM
    • #8
    • 10th Mar 18, 2:32 PM
    So as long as I have made my repayments I'm ok?


    Thanks for your help
    Originally posted by msw18
    Your credit score with the credit reference agencies is a made up number that no lender uses. The content of the file counts, not the makey uppey number they apply to it.

    If you are declined for credit in the future it is likely going to be due to the fact you have 25k on credit with the car finance so you fail affordability tests depending on your income and other credit you have.
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