Why has my credit score gone down?
Your credit score and report changes over time, just as your circumstances do.
Why is a good credit score important?
- The higher your credit score is, the more likely it could be that an application for a mortgage, credit card, personal loan, overdraft or car finance will be accepted.
- Depending on the type of borrowing, the lowest and longest lasting interest rates might be offered to low risk applicants, who’ve shown they can manage credit well over time.
- Your credit score can also affect the amount of credit you’re offered.
- Bad credit might affect your ability to get some jobs, e.g. in legal or financial services.
A summary on why your credit score could go down
A lot of factors can impact your credit score, causing it to increase or decrease over time.
- The reason your credit score reduces, could also influence how long it’ll take for it to recover.
- A good credit score could boost your chances of being accepted for credit when you need it.
- Things which impact your credit score could include new credit applications and missed payments.
- You can build your score in a lot of ways, from making sure you’re on the electoral register and managing accounts well, to correcting errors on your record and limiting new credit applications.