Credit score plummeting... Not sure why?
Credit score plummeting... Not sure why?
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Turkish91

Original Poster:

1,120 posts

232 months

Thursday 2nd February 2017
quotequote all
Hoping for a bit of advice as I'm sure this isn't normal...

I keep a close eye on my credit report through a free site called Noddle, probably not the best service to use but still gives me a rough idea. I always screenshot my credit report every time I go on it, and it's steadily been coming down over the last few months to a point where I'm now apparently well below the UK average and I'm struggling to understand why?

Financial background - 25 years old, circa £200k on our mortgage which I've had now for 12 months. £1600 on a 0% credit card which I haven't spent on in months, only been focusing on clearing it. £10k left on a loan for the next 4 years. Never ever missed any payments on anything ever and never really struggled for credit.

To put into perspective these were my scores over the last six months or so... (UK average they are saying is 610, I think Noddle's scale goes to 700)

- Aug 16 : 624
- Sep 16 : 632
- Oct 16 : 632
- Nov 16 : 629
- Jan 17 : 617
- Feb 17 : 592

The most recent one is obviously a huge jump! I've flicked through the various tabs on the site for searchs and current finances/debt etc and nothing looks untoward. Most recent items are insurance searches from the start of December.

Surely this can't be normal, well not considering I never miss deadlines or fail to make payments? Should I be worried at all?

kiethton

14,648 posts

210 months

Thursday 2nd February 2017
quotequote all
Have you got any credit at all - or if you have had previously is it starting to look like a long time ago?

Sarnie

8,372 posts

239 months

Thursday 2nd February 2017
quotequote all
"Most recent items are insurance searches from the start of December."

More searches = lower credit score.

But ultimately, the score they give you along with Experian & Equifax mean absolutely zero to your credit worthiness. They have all created these numeric metrics to create paranoia in people and give them a seemingly quantitive measurement.

Noddle want you to be paranoid and keep logging in and checking your score and your file.............maybe one day you'll click on the "credit matcher" tab and apply for one of the loans/credit cards that they are "recommending" that fits your apparent credit score...........

Just don't miss any payments and get on with your life smile

8.4L 154

5,775 posts

283 months

Thursday 2nd February 2017
quotequote all
my guess is the £1600 short-term credit utilisation on your credit card, How much of your overall short term credit availability does it represent, but the longer it sits there the more of the monthly snapshots it occupies and shows a trend of becoming long term or unpaid debt, Very much doubt they are taking into account its 0% loan.

you could try clear score as well, they give you a breakdown of the good and bad points on your report, including your short term credit utilisation among others.

Gareth79

9,060 posts

276 months

Thursday 2nd February 2017
quotequote all
Sarnie said:
"Most recent items are insurance searches from the start of December."

More searches = lower credit score.
I believe those are 'soft' searches and don't impact creditworthiness? I don't think they are visible to lenders.

Sarnie said:
But ultimately, the score they give you along with Experian & Equifax mean absolutely zero to your credit worthiness. They have all created these numeric metrics to create paranoia in people and give them a seemingly quantitive measurement.
Agreed! I think it stems from US talk where apparently the agencies DO produce credit scores, presumably for smaller banks/credit unions where employing their own analysts would be expensive.

Sarnie

8,372 posts

239 months

Thursday 2nd February 2017
quotequote all
Gareth79 said:
Agreed! I think it stems from US talk where apparently the agencies DO produce credit scores, presumably for smaller banks/credit unions where employing their own analysts would be expensive.
I never said the soft searches impacted credit worthiness but their presence impacts the reducing "score" that the OP is asking about..........

MX5_Nuts

1,487 posts

137 months

Thursday 2nd February 2017
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Mines lowish with Noddle but have a really good score with Experian. It's all a load of bks.

Jimmy Recard

17,550 posts

209 months

Thursday 2nd February 2017
quotequote all
MX5_Nuts said:
Mines lowish with Noddle but have a really good score with Experian. It's all a load of bks.
Exactly the same here. Noddle seems to think I'm a bankrupt scummer while Experian reckons I could get a mortgage on Buckingham Palace. I wouldn't worry about it

Turkish91

Original Poster:

1,120 posts

232 months

Thursday 2nd February 2017
quotequote all
Thanks everyone, all reassuring replies. I realise I shouldn't take Noddle as gospel but it still seemed pretty strange!

Craikeybaby

12,129 posts

255 months

Friday 3rd February 2017
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You can get your Experian score for free with MSE: http://www.moneysavingexpert.com/creditclub

Condi

20,372 posts

201 months

Sunday 5th February 2017
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Maybe something else, you say 'OUR' mortgage... if your financially attached to someone with a very poor rating, or a rating which is going down, that does (i believe?) impact yours too.

It might also be affected if you're not paying down the 1600 on a 0% card. I know its not costing you more, but someone offering credit would expect to see some progress in paying it back.

Robertj21a

18,009 posts

135 months

Sunday 5th February 2017
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You're over thinking it all. Most people wouldn't bother with such things anyway. Just get on with life.

smckeown

303 posts

275 months

Sunday 5th February 2017
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Coincidentally (or not) noddle recently introduced a payed service called 'credit boost'.

DonkeyApple

70,033 posts

199 months

Sunday 5th February 2017
quotequote all
Turkish91 said:
Hoping for a bit of advice as I'm sure this isn't normal...

I keep a close eye on my credit report through a free site called Noddle, probably not the best service to use but still gives me a rough idea. I always screenshot my credit report every time I go on it, and it's steadily been coming down over the last few months to a point where I'm now apparently well below the UK average and I'm struggling to understand why?

Financial background - 25 years old, circa £200k on our mortgage which I've had now for 12 months. £1600 on a 0% credit card which I haven't spent on in months, only been focusing on clearing it. £10k left on a loan for the next 4 years. Never ever missed any payments on anything ever and never really struggled for credit.

To put into perspective these were my scores over the last six months or so... (UK average they are saying is 610, I think Noddle's scale goes to 700)

- Aug 16 : 624
- Sep 16 : 632
- Oct 16 : 632
- Nov 16 : 629
- Jan 17 : 617
- Feb 17 : 592

The most recent one is obviously a huge jump! I've flicked through the various tabs on the site for searchs and current finances/debt etc and nothing looks untoward. Most recent items are insurance searches from the start of December.

Surely this can't be normal, well not considering I never miss deadlines or fail to make payments? Should I be worried at all?
Probably coincides with Noddle wanting you to buy something from them. Like all 'free' services the intent is that you buy something from them at some point. You have probably been slacking and are getting a nudge from the algo. You're probably just about primed to be shown some great solution to push your imiginary number back up.

JeS10

375 posts

196 months

Monday 6th February 2017
quotequote all
In January I paid off the final £5000 of my car finance. I also paid off a chunk of some credit cards. My score dropped by 92 points on Clear Score. Apparently now I have less debt, I'm less desirable to lend to. But would I really have preferred to pay £100s of interest on the remainder of the car finance just to maintain some arbitrary number? Probably not.

Sarnie

8,372 posts

239 months

Monday 6th February 2017
quotequote all
DonkeyApple said:
Probably coincides with Noddle wanting you to buy something from them. Like all 'free' services the intent is that you buy something from them at some point. You have probably been slacking and are getting a nudge from the algo. You're probably just about primed to be shown some great solution to push your imiginary number back up.
Yep.....as I posted above;

"Noddle want you to be paranoid and keep logging in and checking your score and your file.............maybe one day you'll click on the "credit matcher" tab and apply for one of the loans/credit cards that they are "recommending" that fits your apparent credit score..........."

Nothing in life is free and all that.....

Gareth79

9,060 posts

276 months

Monday 6th February 2017
quotequote all
Sarnie said:
Gareth79 said:
Agreed! I think it stems from US talk where apparently the agencies DO produce credit scores, presumably for smaller banks/credit unions where employing their own analysts would be expensive.
I never said the soft searches impacted credit worthiness but their presence impacts the reducing "score" that the OP is asking about..........
I see yes, it would be crazy of them to use that data in their 'score' since it had no effect to lenders, but as mentioned it would make the score change and keep users coming back.



Jimmy Recard

17,550 posts

209 months

Monday 6th February 2017
quotequote all
I pay £15 a month for Experian. My only significant debt is a few grand on an interest free card that I'm paying a small amount a month to (it'll be cleared at this rate several months before interest starts being charged). I've got enough cash in bank accounts to pay it several times over anyway but might as well take advantage of the interest free deal (it was also 0% balance transfer fee)

Every month my score either stays the same or rises, although there's not much higher it can go now.

Every month though my Noddle score that I don't pay for tells me that I'm below the UK average and I need to do something about it. It also reports total short term debt as nothing like the reality. This score slips every month by different amounts.

I just ignore it smile

Robertj21a

18,009 posts

135 months

Monday 6th February 2017
quotequote all
Jimmy Recard said:
I pay £15 a month for Experian. My only significant debt is a few grand on an interest free card that I'm paying a small amount a month to (it'll be cleared at this rate several months before interest starts being charged). I've got enough cash in bank accounts to pay it several times over anyway but might as well take advantage of the interest free deal (it was also 0% balance transfer fee)

Every month my score either stays the same or rises, although there's not much higher it can go now.

Every month though my Noddle score that I don't pay for tells me that I'm below the UK average and I need to do something about it. It also reports total short term debt as nothing like the reality. This score slips every month by different amounts.

I just ignore it smile
Silly question, I'm sure - but *why* do you pay £15 to Experian every month ?

Jimmy Recard

17,550 posts

209 months

Monday 6th February 2017
quotequote all
Robertj21a said:
Silly question, I'm sure - but *why* do you pay £15 to Experian every month ?
I actually stopped a couple of months ago, but decided to leave it there for simplicity in the story.

That was just the charge for the service and I wanted to track where I was. Started with a free trial and kept it going for a while to follow it