How long does credit score take to repair?
Discussion
If it's classed as a default, a marker can remain on an Experian score for six years. I had this with a store card I took out randomly to get a discount on two suits. I used it once, paid all but £15 off, forgot I had it, moved house twice and boom, had a marker. Never again.
In your case, though, it doesn't make sense. If I were you, I'd sign up to Experian pronto and have a look as to exactly what has happened. That's a massive drop. Surely paying off credit is a good thing not a bad thing?
And there is some sort of appeals process, I think, if they've got something seriously wrong.
https://www.experian.co.uk/consumer/guides/default...
In your case, though, it doesn't make sense. If I were you, I'd sign up to Experian pronto and have a look as to exactly what has happened. That's a massive drop. Surely paying off credit is a good thing not a bad thing?
And there is some sort of appeals process, I think, if they've got something seriously wrong.
https://www.experian.co.uk/consumer/guides/default...
I'm struggling to understand why paying off a balloon payment would be impactful. Are you sure it's not because of any other changes ?
ETA: I think you can get your Experian report for free via MoneySavingExpert - https://www.moneysavingexpert.com/creditclub/
ETA: I think you can get your Experian report for free via MoneySavingExpert - https://www.moneysavingexpert.com/creditclub/
Reading online it’s something about when you close a credit account. There is a negative impact for about 3 months. Then it should bounce back in 3-6 months.
Strange. Well that’s my understanding anyhow.
I guess it could be taken as you’re not seeing a full agreement through to the end but then how can you when you hit 36 months in my case and you have a choice of: buy it, hand it back, part exchange it, or re-finance it.
Strange. Well that’s my understanding anyhow.
I guess it could be taken as you’re not seeing a full agreement through to the end but then how can you when you hit 36 months in my case and you have a choice of: buy it, hand it back, part exchange it, or re-finance it.
Simpo Two said:
I'd rather have money and a low credit score, than no money and a high credit score.
Your score fell because you became a creditor not a debtor..
Think of the BBC quiz 'Pointless'. 0 is actually good
Not always the case that it’s better. Your score fell because you became a creditor not a debtor..
Think of the BBC quiz 'Pointless'. 0 is actually good
MIL recently struggled to get a contract mobile phone as a result of having no credit history (house paid off years ago, no credit cards, all household bills dealt with by FIL, etc).
LooneyTunes said:
Simpo Two said:
I'd rather have money and a low credit score, than no money and a high credit score.
Your score fell because you became a creditor not a debtor..
Think of the BBC quiz 'Pointless'. 0 is actually good
Not always the case that it’s better. Your score fell because you became a creditor not a debtor..
Think of the BBC quiz 'Pointless'. 0 is actually good
MIL recently struggled to get a contract mobile phone as a result of having no credit history (house paid off years ago, no credit cards, all household bills dealt with by FIL, etc).
Simpo Two said:
PH User said:
Yeah it's a bit more complex than that, you can have money but be unable to get credit when needed.
Fair point, if you have to buy something by monthly DD. The System won't let you just buy a yearsworth in cash, that would be too simple.Driver101 said:
Why would paying off debt have a negative impact on a credit rating?
I don't understand why it would have the slightest negative impact
A lot of people pay off debt in bulk in order to take out more debt. I don't understand why it would have the slightest negative impact
I think that credit scores work on a principle that a large amount of debt doesn't just disappear and it's unusual to have a sudden bulk influx of money to enable being debt free.
Therefore if you pay off a large loan, it assumes you will either take another larger one out as part of debt consolidation or as part of an 'upgrade' purchase - i.e a newer car.
Simpo Two said:
PH User said:
It's not just about having to use credit, good credit gives you flexibility and allows you to make the most of your cash.
Well yes, if you can think of something to with it that will pay more than the interest you're paying. Personally it's not a plank I care to walk.
PH User said:
Ha ha, don't worry, I've had a few drinks as well
Suitcase of money works every time 
When I think 'finance' (as in borrow) I think of all the people I'm paying to work in nice warm office blocks playing with computers.
I think this dates from the time when I wasn't sure when the next job would come in. So I kept a large reserve and always bought things outright - so if times became hard I had an asset to sell. I absolutely hate overheads, it's money you have to earn to stand still. If I'd had a cosy PAYE job with a guaranteed cheque every month, well, then you can afford to squander, because you know it will be magically replaced.
Mines drop a lot this year , paid mortgage off early and stopped using credit card as I get 1% cash back on my debit card. It makes no sense but they like to see you with lots of credit and managing to keep afloat , having 10 million in the bank doesn’t impress them because they don’t know , earning 100k a year doesn’t help as again they have no clue , it’s a funny game
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