Why has credit score gone down?

[OutComeTheWolves]

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!

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.

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

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.

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

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!

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!

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.

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.

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!

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.