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
    • Sfullen96
    • By Sfullen96 12th Jul 18, 12:35 PM
    • 2Posts
    • 0Thanks
    Sfullen96
    Credit Score dropped by 175 in 1 month due to closing an old current account
    • #1
    • 12th Jul 18, 12:35 PM
    Credit Score dropped by 175 in 1 month due to closing an old current account 12th Jul 18 at 12:35 PM
    I had a Halifax current account for around 4 years since I was 18 (22 now), and I wanted to switch to Starling. So I read up on as much as I could and made the switch, I did a full current account switch from Halifax to Starling, thus closing my Halifax account. Nowhere in my reading-up did I come across anything that made me aware that the average age of open accounts can affect credit score, so by closing my 4 year old account and with it being my only current account, my credit score has took a huge hit.

    I'm looking to be applying for a mortgage over the next 12 to 18 months so obviously this drop in score is quite alarming to me, does anyone know of anything that can help me with this? Can I re-open my old Halifax current account to boost my score again?

    I'm using Clearscore for my credit report, and the only other thing it mentions as a reason for the drop is that I'm not on the electoral register (recently moved house and have applied to be on the register), I don't think that this is as big of a reason for the drop as the aforementioned current account shenanigans, unless someone can tell me otherwise?

    I need to apply for a credit card to boost my credit score quickly, but now seeing as my score has dropped so drastically I can no longer apply for the 'better' credit cards... the irony!

    Any help or advice would be greatly appreciated.

    Thanks,
    Sam.
Page 1
    • Gary_Dexter
    • By Gary_Dexter 12th Jul 18, 12:39 PM
    • 1,491 Posts
    • 848 Thanks
    Gary_Dexter
    • #2
    • 12th Jul 18, 12:39 PM
    • #2
    • 12th Jul 18, 12:39 PM
    The score is made up and does not mean you cannot get better cards - ignore that.

    Opening a new account will make your score drop again.

    And mortgage lenders do not see it or judge you on it (nor does anyone for that matter).

    Apply for a credit card by all means to increase your credit history, but expect your score to drop again due to the searches being carried out and change in your credit availibility
    • Grezz24
    • By Grezz24 12th Jul 18, 12:40 PM
    • 78 Posts
    • 32 Thanks
    Grezz24
    • #3
    • 12th Jul 18, 12:40 PM
    • #3
    • 12th Jul 18, 12:40 PM
    Ignore your credit score - its not what lenders look at when they do their checks. The scores are generated by the credit company to help them sell on their extra products.

    Instead concentrate on maintaining a healthy credit file. So paying accounts on time/ not defaulting. Clearing credit cards or making payments on time etc.

    Dont take out any payday loans if you are wanting to get a mortgage - they are heavily frowned upon as not being able to manage your expenditure.
    • spadoosh
    • By spadoosh 12th Jul 18, 12:42 PM
    • 5,280 Posts
    • 7,182 Thanks
    spadoosh
    • #4
    • 12th Jul 18, 12:42 PM
    • #4
    • 12th Jul 18, 12:42 PM
    Completely ignore the credit score, it is meaningless.

    Pay attention to your credit report. It contains all financial associations you have and a history of your financial affairs. No company will look at your credit score, they cant even see it, they will only look at the contents of your credit file to determine your credit worthiness.

    No lender will have an issue with you closing a bank account that is no longer used. This alone should explain the ludicrous nature of credit scores.
    Don't be angry!
    • MEM62
    • By MEM62 13th Jul 18, 10:19 AM
    • 1,636 Posts
    • 1,260 Thanks
    MEM62
    • #5
    • 13th Jul 18, 10:19 AM
    • #5
    • 13th Jul 18, 10:19 AM
    I'm looking to be applying for a mortgage over the next 12 to 18 months so obviously this drop in score is quite alarming to me
    Originally posted by Sfullen96
    Alarming? Why? The two are unconnected.

    You really need to stop watching the CRA adverts.
    • jimbo26
    • By jimbo26 13th Jul 18, 10:36 AM
    • 423 Posts
    • 205 Thanks
    jimbo26
    • #6
    • 13th Jul 18, 10:36 AM
    • #6
    • 13th Jul 18, 10:36 AM
    This story should highlight how ridiculous the scores are. A year ago my wife had a limited credit history just a mobile phone contract and a joint bank account. Despite this her 'score' was in the mid 700's (Fair) but she was unable to get any mainstream card. She got a Vanquis card which now has a 3000 limit with 0 balance but used regularly and paid off in full. She also has a Aqua card 1200 limit. Only used for a 4 month 0% deal and paid off in full and not used. Her 'score' 1 year later is 331 (very poor).

    Just applied for mainstream card and accepted.

    Morale of the story...the scores are a load of BS. It is how you manage your accounts that has the greatest effect.
    • Sfullen96
    • By Sfullen96 15th Jul 18, 12:20 AM
    • 2 Posts
    • 0 Thanks
    Sfullen96
    • #7
    • 15th Jul 18, 12:20 AM
    • #7
    • 15th Jul 18, 12:20 AM
    Ignore your credit score - its not what lenders look at when they do their checks. The scores are generated by the credit company to help them sell on their extra products.

    Instead concentrate on maintaining a healthy credit file. So paying accounts on time/ not defaulting. Clearing credit cards or making payments on time etc.

    Dont take out any payday loans if you are wanting to get a mortgage - they are heavily frowned upon as not being able to manage your expenditure.
    Originally posted by Grezz24
    Thanks for the quick reply.

    Is there a way to check a credit file or is not a psychical thing you can see/view?

    I wish they taught you this stuff at school!
    • boo_star
    • By boo_star 15th Jul 18, 12:26 AM
    • 1,571 Posts
    • 913 Thanks
    boo_star
    • #8
    • 15th Jul 18, 12:26 AM
    • #8
    • 15th Jul 18, 12:26 AM
    Thanks for the quick reply.

    Is there a way to check a credit file or is not a psychical thing you can see/view?

    I wish they taught you this stuff at school!
    Originally posted by Sfullen96
    Use the MSE Credit Club to view your Experian file

    Clearscore for Equifax

    Noddle for Callcredit.
    • Nebulous2
    • By Nebulous2 15th Jul 18, 6:28 AM
    • 1,916 Posts
    • 1,146 Thanks
    Nebulous2
    • #9
    • 15th Jul 18, 6:28 AM
    • #9
    • 15th Jul 18, 6:28 AM
    Moving house and not being on the ER will have a bigger impact than closing an account. Lenders like stability and they like being able to track you.
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

680Posts Today

5,646Users online

Martin's Twitter