I don’t know about you, but mine appears to behave like a yo-yo. Up and down, up and down. Sometimes there’s an obvious reason, sometimes there isn’t. I know I was in debt before, and I know it took a big hit back then. I also know that I recently moved house so had new credit applications for my mortgage etc go through, but other than that it sometimes appears to be somewhat random.
I’m sure it isn’t really but I wish there was a more accurate and up to date system. It’s great now you can access your credit score for free via a variety of different providers such as Clearscore and Experian. However I do wonder whether we really know enough about the system to really make the most from the information we are given. It doesn’t help much that the two providers above use completely different scales as well. You can be 400 on one and 800 on the other. It would also be good if there was more transparency about the factors that have made it go up or down. Explaining it in finance speak is not much use to the vast majority of us.
I think the important thing is to get some advice from an expert depending on what your reasons are for wanting to understand it. Before I moved I spoke to a mortgage broker to go through it with me. I wanted to find out whether I’d be able to get a mortgage before I committed spending loads of money on searches and things like that. Other factors can be a lot more important in a mortgage application than just a number – however your broker will be able to explain it much better than I ever could.
Try not to obsess over the numbers and remember the bigger pictures. Make sure you do get corrections on any mistakes on your credit report though. It should be accurate, even if it’s not always clear.