I don't understand credit scores! Why?

[SmallGreens]

I've spent a year improving my credit score.

It gone from 250 to 700. 6 months ago I got my first credit card. Kept utilisation below 20%. Paid 100% off every month.

Credits gone up from that to 700.

I needed a new phone and got one from carphone warehouse. On the cheap side of phones and only £20pcm.

Both my credit reports show as dropping 150 points now because I've got 'too many hard searches'

And the list is

1 hard search from carphone warehouse

WTF? 150 point drop because I got a contract phone?

So I build my credit but am not allowed to even get a phone?

Is it normal for that to happen?

It would have been in the T&C's that they would be doing a credit check. How else would they know you are reliable to pay the contract back?
I've always found it cheaper, in the long run, to just buy a phone outright and find a separate plan. Backmarket are good for reconditioned phones and I've never had an issue- until I've cracked my own screen etc.

The "score" you see is utterly pointless. It isn't shown to anyone but you. What matters is that lenders can see you pay your credit commitments, on time, and can afford any credit you have. A year isn't long to improve your credit rating but keep doing what you are doing. Make sure you are on the electoral register as this helps and continue paying your credit card in full and when it is due.

I knew they would do a credit check but what I'm saying is I don't understand why it's had such a negative impact on my credit score.

What's the point in it if getting credit makes your score down so much?

It's hardly a 20k loan.

And I was told I needed to build my credit up as the only account I have is the credit card, hence getting a contract phone rather than buying one outright 😑

Credit scores are meaningless. Don’t worry about it. You’re doing all the right things. Use credit wisely, keep debt low, and pay every bill on time.

Why do you need a good credit score?