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Why has credit score gone down?

(12 Posts)
OutComeTheWolves Mon 04-Dec-17 19:19:37

Years ago I got into a terrible amount of debt and was truly awful. Ive spent the time since then slowly paying off debt and rebuilding my credit score to the point where my score was good and I only had some of my overdraft left to pay off.

I was gifted some money about a month ago and used to clear my overdraft so I'm now completely debt free. Just checked online today and my credit score has gone down significantly. Does anyone have any idea why this could be? I'm completely stumped!

HiggedyPiggedy Mon 04-Dec-17 19:32:30

The score doesn't actually matter. It's just a number made up by the credit agency and the only people who sees it are them and you.

19lottie82 Mon 04-Dec-17 20:23:23

Yes, your score is nothing but a meaningless made up marketing tool. No one sees t but you. Ignore it.

GardenGeek Mon 04-Dec-17 20:28:24

Have you changed address or lost your oldest contract?

I had a really old phone contract and when I got rid of it and changed my finances all at once mine dropped

Something to do with having long contract lengths. Its just a computer as PP said so don't worry.

Battleax Mon 04-Dec-17 20:30:52

The number is just indicative (NOT "made up" but not actual data either) and algorithm generated.

Just check carefully that all the information on your report is accurate and unproblematic. That's what matters.

delilahbucket Mon 04-Dec-17 22:06:44

It's because you are completely debt free. Nothing worth worrying about though. As pps said, it's a meaningless number.

BananaSandwichesEveryDay Mon 04-Dec-17 22:17:48

Happened to me when we paid off the mortgage. Seems daft that having paid the mortgage on time every month for 20 odd years, never missing a payment or being even a day late, the minute we clear it, our credit rating drops!

OutComeTheWolves Tue 05-Dec-17 01:01:11

Thank you! I've had a bit of a look and it says it's because I have a new alias (I don't). Then next to it is a name that's not mine. I think I'll email them in the morning to see what that's all about!

Battleax Tue 05-Dec-17 01:26:07

They've mistakenly linked you with someone else then.

Be rigorous about following up. It could be a mistake or it could be a sign of someone committing fraud, but it will negatively impact you if you don't get the connection severed.

GingerbreadMa Tue 05-Dec-17 01:40:25

My score went UP significantly when I went from never being in my overdraft or using my credit cards to being well into my over draft and in credit card debt.

Its because I became a "profit generating customer" once I was making interest payments and thats more desirable to some lenders than someone who pays everything in full and never incurs any fees or interest or charges.

Fintons Tue 05-Dec-17 02:27:23

I earn bugger all and had credit card debt = to my annual income which I was paying off. My credit score was the highest possible! Higher than that of people I know with £millions and tiny debts.

AFAIK it's an indicator of the %return on lending investment they're likely to make. Points aren't awarded for being good managing your finances and staying out of debt!

19lottie82 Tue 05-Dec-17 11:36:30

IGNORE YOUR SCORE, it’s meaningless! Lenders don’t see it.

Concentrate on not having loads of access to credit, ie lots of credit cards or catalogue accounts, even if they are unused.

Instead show that you can manage reasonable amounts of credit responsibly.

No missed or late payments.

Make sure you’re on the electrotal register.

The above will make you more appealing to potential lenders.

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