When you log into ClearScore, you can see what’s currently affecting your credit score under the section of your ‘Report’ tab.
Here’s a full list of factors you may see and how they can impact your score:
- Missed payments/Defaults - Recent or historic missed payments or defaults on your credit accounts may throw doubt on your ability to pay off any future debt. These are likely to remain on your report for up to 6 years.
- High debt levels - This could cause your score to drop as you might be seen to be struggling financially.
- Public information - Any Bankruptcies, County Court Judgments (CCJs) or Individual Voluntary Arrangements (IVAs) on your report will negatively impact your credit score, as you’ll appear less likely to pay back any credit.
- Short-lived credit accounts - If all of your credit accounts have only been open for a short time, this can lower your credit score as it suggests instability and a lack of experience with credit.
- Balance changes - Any changes in your spending behaviour could have an impact on your score as it suggests instability.
- Credit utilisation - If you’re using more or less than the recommended credit utilisation (30% - 50%), this can have a negative effect on your score, as it could suggest that you’re overly reliant on - or not utilising - your credit.
- Opening accounts - There may be an extra credit application (‘hard’) search on your credit report when you open a new account. Any new credit accounts will lower the average age of your credit agreements, which is a factor taken into consideration when calculating your credit score.
- Closing accounts - This will lower the variety of credit accounts you have, as well as their average age. Likewise, if an account drops off your report, you could lose that account's positive contribution to your score.
- Credit application searches'- Also known as 'hard' searches, these appear when a lender performs a search on your credit report when you apply for credit (i.e. a background check on your credit history). Too many credit application searches on your report may suggest to lenders that you may rely heavily on credit and could struggle to make repayments.
- Addresses- Banks and lenders look at your address history and the credit data attached to each address (including addresses you haven’t given us). They use this data to calculate your score, so if any addresses are missing or incorrect, your report won’t be completely accurate.
- Electoral roll- If your current electoral roll details are not listed on your report, it makes it more difficult for banks and lenders to verify your identity and this may lower your score.
- Financial Connections- If you apply for finance with someone (e.g. you hold a joint credit card or mortgage) they become linked to your credit report. Though this doesn’t necessarily decrease your score, their credit history may be taken into consideration when you apply for credit.
- Names- If there are variations of your name on your report, it may be more difficult to verify your identity.