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Does anyone know anything about credit scores? Unexplained downgrade!

5 replies

Whichwhatnow · 11/08/2022 17:27

Hi! My credit score has been on the low side since I missed multiple payments resulting in my internet being cut off nearly four years ago (this was a mistake on my part - I moved temporarily from my main residence and thought I'd cancelled the direct debit but clearly didn't). For a while I was 'very poor' on Equifax, then gradually rose up to 'fair'.

I recently got my first ever credit card with the aim of increasing my score a bit before remortgaging early next year (never had one before and haven't actually used it yet). I just checked Equifax and my score has dropped 150 points back to 'poor'! Literally nothing else has changed on my report. I've paid all bills and my mortgage etc on time, no debt, no unauthorised overdraft use, absolutely nothing. The only thing I can possibly think of is that I would have had a hard credit check for the credit card - but surely that wouldn't lead to a 150 point drop?? Aargh help!

OP posts:
AmyFl · 11/08/2022 17:28

Mine went down when I got a new credit card too. I think it's because there's an assumption that you need credit?

AdInfinitum12 · 11/08/2022 17:31

Bear in mind nobody but you can see your score, it's totally meaningless, your credit history is what's visible to lenders, not the score. It's just a way for the agencies to put your credit history together in a way that helps you see the big picture.

Your score will have dropped when taking out a credit card (as you now have additional credit/borrowing facility) but it'll make it's way back up again.

JustALittleHelpPlease · 12/08/2022 01:56

Getting credit always drops it. Sensible use of it makes it climb higher than before you got it... keep your credit usage under 25% (but not too much under) and pay it in full every month. It takes a little while but it works.

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Whichwhatnow · 12/08/2022 11:39

Ok, thanks everyone! That does make sense - I just didn't consider it really as there's so much advice out there that getting a credit card is advisable. I shall start using it and fingers crossed that'll help!

OP posts:
sunsetsandsandybeaches · 12/08/2022 11:40

It'll be because you haven't used your credit card. Use it regularly and it'll go up again in no time 😊

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