topic Re: Unsecured loan - credit score dropped in Contracts & Billing

Unsecured loan - credit score dropped

Cacla132 — Fri, 15 Mar 2024 07:34:33 GMT

Hello,

I didn't realise that getting a new handset on contract would show on my credit file as an 'unsecured loan'. It's caused my credit score to drop by 70 points and go from excellent to good. This will potentially cause big problems as I need to apply for a mortgage soon. Is there anything I can do to rectify this? Is it possible to pay it off and close the account? Im outside the cooling off period before I noticed unfortunately.

Re: Unsecured loan - credit score dropped

bristolian — Fri, 15 Mar 2024 08:05:35 GMT

The term "credit score" is largely meaningless outside the marketing departments of certain CRA's who are wanting to sell you additional products. You have a statutory credit file that records your payments history and searches, and then individual lenders score you internally against their own criteria.

From when I migrated to FlexPay in late-2023, you are advised of a credit search as part of the process.

Re: Unsecured loan - credit score dropped

Chris_B — Fri, 15 Mar 2024 08:20:32 GMT

@Cacla132 Even paying it off now it'll still will show your credit report for around 3 months.

Re: Unsecured loan - credit score dropped

Cacla132 — Fri, 15 Mar 2024 09:34:55 GMT

I remember I was warned that a credit search would be done and I had no issue with that but I don't think it was clear that this would show as an unsecured loan.

Re: Unsecured loan - credit score dropped

BrendonH — Fri, 15 Mar 2024 10:03:53 GMT

As long you don't miss any payments you will be fine.

My credit score was only 'Good' when I was accepted for my mortgage back in 2020.

Re: Unsecured loan - credit score dropped

Cacla132 — Fri, 15 Mar 2024 10:12:15 GMT

Thanks for the reply, that's reassuring.

Re: Unsecured loan - credit score dropped

Debsjs92 — Sat, 27 Jul 2024 10:55:56 GMT

I have had the same issue, it's dropped it twice now. First time initially was down 40, second time down 62. I've gone from 808 to 706.

Re: Unsecured loan - credit score dropped

bristolian — Sat, 27 Jul 2024 11:03:32 GMT

@Debsjs92 wrote:

I have had the same issue, it's dropped it twice now. First time initially was down 40, second time down 62. I've gone from 808 to 706.

Any "credit score" is largely meaningless outside the marketing departments of certain CRA's who are wanting to sell you additional products. You have a statutory credit file that records your payments history and searches, and then individual lenders score you internally against their own criteria.

Re: Unsecured loan - credit score dropped

Crisyo — Tue, 19 Nov 2024 14:12:19 GMT

Has it gone back up yet? This has just happened to me after renewing a phone contract with EE and taking a new internet package 😔 gone from 917 to 790

Re: Unsecured loan - credit score dropped

Jez2024 — Thu, 05 Dec 2024 11:33:48 GMT

Hi All,

I just been informed by Clearscore that having taken out a year sim only deal with EE has had a profound 'negative' effect on my credit score to the tune of 76 points 😳.

Its something that was unexpected(Appreciate a hard search was conducted - but not affecting a score to that degree) , and in hindsight, had i have known would have caused me to 'RECONSIDER' said contract.

I have subsequently raised a case with Equifax, and will await the result

I appreciate 'Credit scoring' is purely a Guide, and is simply designed to help you understand what your credit report might mean to a lender

But as insignificant beings in a Universe we kind of take these things personally lol

Re: Unsecured loan - credit score dropped

bristolian — Thu, 05 Dec 2024 11:40:55 GMT

@Jez2024 wrote:

I just been informed by Clearscore that having taken out a year sim only deal with EE has had a profound 'negative' effect on my credit score to the tune of 76 points .

What explanation have Clearscore given, for them dropping their score by 76 points?

Re: Unsecured loan - credit score dropped

Jez2024 — Thu, 05 Dec 2024 11:54:40 GMT

Hi,
I think you may have jumped the Gun a little bit, although appreciate you reaching out so promptly.
I'd just posted that comment on the EE notice board no more than 10 mins a go, including the comment 'I have subsequently raised a case with Equifax, and will await the result' - (await being the operative word)
I personally think (and from my experience) its a piece of information that is prudent and relevant, and based on my experience alone.
And the idea of a Community is to both share and acknowledge other people points of view and information that is valuable to said community, wouldn't you agree?
Kind Regards
Jeremy

Re: Unsecured loan - credit score dropped

bristolian — Thu, 05 Dec 2024 12:56:26 GMT

No gun-jumping or premature posting with my last reply.

Check your statutory credit file with all 3 main CRAs, this is a free process and allows you to conduct a line-by-line check of all entries. Pursue any incorrect entries.

How individual lenders score against their criteria, is confidential to those lenders.

Re: Unsecured loan - credit score dropped

Jez2024 — Thu, 05 Dec 2024 13:40:52 GMT

Many Thanks, and already done, reason -

A new CreditApplication search by BTG (BT, EE, PLUSNET) was added to your December 2024 report

Which is correct, as i have indeed taken out a Sim only contract

As I've previously stated -

I appreciate 'Credit scoring' is purely a Guide, and is simply designed to help you understand what your credit report might mean to a lender

And should I, having taken out a simple 2 year contact with EE, be chasing consumer credit reporting agency to request amendments to this unjustified drop - I personally think not!

A lesson duly learnt, but not one i would have wished for.*

*Disclaimer -The information supplied above is purely given for informational purposes and represents, the personal experiences of Jeremy L****, a customer of EE/BT, and should not be taken as defamatory in meaning or any way interpreted.

Re: Unsecured loan - credit score dropped

Waybap — Wed, 20 Aug 2025 08:16:23 GMT

Would be interested to see if you get a reply on this, as I have just taken out a sim only deal and it has dropped my score by 75! It’s £21 a month **bleep**.

Re: Unsecured loan - credit score dropped

bristolian — Wed, 20 Aug 2025 08:27:25 GMT

@Waybap wrote:
I have just taken out a sim only deal and it has dropped my score by 75!

What "score" has dropped?

Credit scoring by lenders is internal to them. Credit scores offered publicly will only ever be indicative and based on their own criteria.