Does moving house affect your credit score?

There are a lot of things that can affect your credit score.

Opening up a new credit account, losing your job, missing a payment - all of these are well known catalysts for negatively affecting your credit rating. But did you know that moving can affect your credit score as well?


Credit reporting agencies are always nervous when they see an individual go through a major life change. Moving is an example of a major life change that can be seen as risky from a creditor's perspective.

- Why did you move?
- How much did the move cost?
- Did you remember to change where all your bills are sent to?

All of these can affect your credit score, because they can all represent a credit risk for the future. Credit agencies don't know your motivations for your move, but they do know that moving is rarely a financial decision that leads to improved income. When one individual moves from a small house into a bigger house, they usually have additional payments they need to make. When someone moves from a larger house into a smaller one, it could be a sign that they cannot afford their monthly payments in their old place.

In addition, any move, whether to a house or a flat usually requires some form of credit check or additional loans . All of these can make your credit score dip at varying degrees.

Also, creditors know that moves can be expensive. The cost of moving a great deal of stuff from one place to another can be a thousand pounds or more, and the cost of restocking your new place or fixing any broken problems only adds to that number.

Credit companies are run by people too, and these people know that moving happens all the time for some people. That is why moving itself is not a huge credit risk, so your score will not move from an 800 to a 400 overnight, but borrowers should be aware that moving does represent a credit risk for a variety of reasons. And if the individual moves often, or has anything else that represents a credit risk (perhaps a lost job coincides with a move) all of these have the potential to throw up a red flag for creditors that could cause your credit score to suffer.

In order to bring your credit back to normal, make sure you continue to make all of your payments, have switched all information to the new address, and have money in the bank so that creditors are not worried about your ability to make payments. If you do these things, you should be able to fix the credit problems that occurred from the move in no time.

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