Why has my credit score gone down?

Your credit score can go up and down, and that may be due to a few different things. Here are some of the reasons why:

1. You’ve opened a new account

When you open a new account, the average age of your accounts drop. Usually, the longer you have an account the better your credit score. Don’t worry, this usually only impacts your credit score in the short-term.

2. You’ve closed an account

Closing unused accounts can help protect you from fraud. In terms of your credit score, this could cause a short-term drop, as it changes your credit utilisation ratio and reduces the average age of your accounts. But don’t worry, you can build your credit score back up again.

3. Have you missed a payment?

Payments are an important factor for your credit score. Lenders and service providers report when you’ve missed a payment, paid late or are in arrears.

4. Your debts have increased

If you’ve increased the amount that you owe, your credit utilisation ratio changes. The smaller the gap between what you’re able to borrow and what you have borrowed, the more likely it is to impact your credit score.

5. You’ve moved home

Your address is an important piece of information to help confirm your identity. So, if you’ve moved home, make sure you register to vote – this will help link your identity to your new address.

6. You’re having financial difficulties

Missing payments can damage your credit score. If you’re struggling with payments to your MBNA agreement, talk to us. If your debt is with another lender, you should reach out to them for support.

If you have things like defaults, judgments (such as CCJs), bankruptcies or insolvencies, these are likely to impact your credit score.

4 ways to help improve your credit score

There’s a number of ways you might be able to help improve your credit score. But here are 4 simple tips:

  • Register to vote. If you’re not already registered to vote, getting on the electoral register may help to improve your score. 
  • Make your payments on time. Setting up a Direct Debit can help you meet payments on time, just remember to ensure you have funds available.
  • Manage your finances responsibly. Lenders are looking for responsible borrowers who make at least the minimum repayments and pay on time. 

How you could help improve your credit score

Why your credit score matters

  • Higher acceptance. With a higher credit score, you're more likely to be accepted for things like a personal loan, mortgage, credit card or car finance. 
  • Lower interest rates. You’re more likely to be offered lower and longer lasting interest rates, if you have a higher credit score, as you have shown to lenders that you can manage your finances.
  • Amount of credit. A higher credit score could mean that you’re more likely to be offered higher credit limits.

A quick recap

Here’s what you’ve learnt about why your credit score may have gone down.

  • Your score can go up or down over time, depending on your circumstances. 
  • You can help build up your score in a number of ways, including registering to vote, managing your finances well and making payments on time.

Keep reading

Applying for credit

How does a credit score work?
What is a bad credit score?
What is a good credit score?
What affects your credit score?

Using credit

What are interest rates?
How to consolidate debt
What is APR?
What is a balance transfer?
What is a money transfer?

Ways to borrow

What is credit?
Credit cards
Loans
Knowing what you can afford
How a credit card works

Know where you stand with MBNA

Sign up for ‘Your Credit Score’. We’ve partnered with TransUnion to provide you with access to your credit score. It’s free to use and won’t impact your credit file.

  • View your updated credit score every 7 days.
  • See what you’re doing well. 
  • Understand what you can do that might help to improve your score. 
  • Find out how your score compares to the UK average.

More on Your Credit Score