Why Your Credit Score Dropped Suddenly: Common UK Causes

A sudden drop in your credit score can be alarming, particularly if you are not sure what caused it. In the UK, three Credit Reference Agencies (CRAs) — Experian, Equifax, and TransUnion (formerly Callcredit) — independently collect and hold information about consumers' credit histories.

Each CRA calculates scores using its own proprietary model, and each uses a different scoring range. Because of this, there is no single universal credit score in the UK, and a change on one report does not necessarily mean the same change has occurred on another.

This article explains the most common reasons a UK credit score might drop, how the system records and retains information, and what the underlying rules and timelines are. It does not provide financial advice or suggest any course of action.

Credit scores in the UK can fall for a range of reasons, most of which relate to changes in the information held on your credit file. The most common causes include:

• Hard Credit Search: A new application for credit.
• Late Payment: A payment missed by 30+ days.
• Default: A debt that has gone unpaid for 3-6 months.
• CCJ: A County Court Judgment for unpaid debt.
• Utilisation Spike: Using a high percentage of your available credit limit.
• Electoral Roll: Being removed from the voting register.
• Insolvency: Entering an IVA, DRO, or Bankruptcy.

Each CRA scores on a different scale — Experian uses 0–999, Equifax uses 0–1,000, and TransUnion uses 0–710. A drop of 50 points on one scale is not equivalent to 50 points on another. Furthermore, lenders do not use CRA scores directly; they generate their own internal scores based on CRA data combined with their own criteria and affordability assessments.

The UK credit reference system is built on a straightforward principle: lenders report information about consumer accounts to CRAs, and CRAs compile that information into credit files. When a consumer applies for credit, the lender retrieves data from one or more CRAs and combines it with their own internal records and criteria to make a lending decision. Credit Reference Agencies do not make lending decisions themselves.

Not all lenders report to all three CRAs. This means the information held by Experian, Equifax, and TransUnion may differ, and updates may not happen simultaneously across agencies. Lenders typically report to CRAs on a monthly cycle, and updates may take four to eight weeks to appear on a credit file. This delay means that a score change you see today may relate to an event that occurred several weeks earlier.

Understanding what appears on a credit file and for how long is essential to understanding why a score might change.

Hard Credit Searches

A hard credit search is recorded when a consumer formally applies for credit, such as a loan, credit card, mortgage, utility contract, or mobile phone contract.

• Visibility: Visible to other lenders for approximately 12 months (though some sources indicate up to 24 months).
• Impact: Multiple hard searches within a short period may have a cumulative negative effect, as lenders may interpret this as a sign of financial pressure.
• Contrast: See our guide on Hard Search vs Soft Search for more detail.

Late Payments

Late payments are typically reported to CRAs once a payment is around 30 days overdue.

• Timing: Variations exist, but 30-60 days is standard.
• Impact: A late payment marker is added to the credit file and negatively impacts the score.
• Duration: Stays on file for 6 years. (See: How Long Late Payments Stay on Your Credit File).

Defaults

A default is typically registered after three to six consecutive missed payments (90-180 days).

• Process: The lender must issue a Default Notice (giving 14 days to rectify) under the Consumer Credit Act 1974.
• Impact: Significant negative impact; often leads to account closure and debt collection.
• Duration: Stays on file for 6 years from the default date.

County Court Judgments (CCJs)

A CCJ is recorded when a court rules in a creditor's favour for an unpaid debt.

• Cancellation: If paid within one month, you can apply for a certificate of cancellation to remove it entirely.
• Satisfaction: If paid after one month, it is marked as "Satisfied" but remains on file for 6 years.
• Learn More: Read our guide on How Long After a CCJ Can You Get a Mortgage.

Electoral Register Status

CRAs use the full electoral register to verify identity.

• Impact: Not being registered at your current address is a common cause of a lower score.
• Update Cycle: Monthly updates (except October/November). See how the Electoral Roll affects Credit Scores.

Formal Insolvency

Bankruptcy, IVAs, and DROs have a severe negative impact.

• Bankruptcy: Generally discharged after 12 months, but remains on credit file for 6 years.
• IVA/DRO: Stays on file for 6 years from the start date.

"One Credit Score" Myth

There is no single UK credit score. Experian, Equifax, and TransUnion all produce different numbers. You can learn more about these Credit Score Myths and range details in our rankings guide.

Credit Utilisation

Utilisation is the percentage of your limit you are using. A sudden spike (e.g., going from 10% to 80% usage) can cause a score drop. While US models cite "30%" as a rule, UK lenders assess this based on their own affordability criteria.

The "Statute Barred" vs "Removal" Trap

A debt becoming "statute barred" (unenforceable in court, typically after 6 years of no contact/payment) does not strictly dictate its removal from a credit file, though in practice, both usually align at the 6-year mark from the default date. In Scotland, the prescription period is 5 years.

• Scotland: Has different insolvency laws (Sequestration, Trust Deeds) compared to England & Wales.
• Identity Fraud: If your score drops due to fraud, CRAs can suppress the information while investigating. You may consider a CIFAS protective registration.
• Notice of Correction: You can add a 200-word statement to explain any entry on your file. Lenders must read this, which may delay automated decisions.

When a credit score drops, the cause is almost always traceable to a change in the underlying data.

1. Check the Data: Don't just look at the number. Look for new "Hard Searches", "Late Payment" markers, or changes in "Electoral Roll" status.
2. Wait for Updates: A score drop today might reflect a credit card balance from 6 weeks ago, due to reporting lags.
3. Check Associations: If you have a financial associate (e.g., joint mortgage), their bad credit could affect you.

Why do I have different scores at different agencies?

Each CRA (Experian, Equifax, TransUnion) uses a different calculation model and scoring range. Lenders also don't report to every agency, so the data they hold might differ.

Do CRAs decide whether I get credit?

No. CRAs only hold data. The lender makes the decision based on that data plus your income and their own risk appetite.

Can checking my own credit report lower my score?

No. Using services like ClearScore, Credit Karma, or Experian to check your own report is a Soft Search. It is not visible to lenders and does not affect your score.

What is the difference between a Hard and Soft search?

A Hard Search is a formal application for credit visible to other lenders. A Soft Search is a background check (e.g., for quotes or ID) that only you can see.

Can someone else's credit file affect mine?

Yes, but only if you are "Financially Associated" (e.g., joint account, joint mortgage). Simply living with someone does not link your files.

Explore more guides in our Credit Scores Hub.