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  • FIRST POST
    • mantis1
    • By mantis1 11th Jun 17, 9:00 PM
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    mantis1
    Few Questions About Loan (Credit Score, Reason)
    • #1
    • 11th Jun 17, 9:00 PM
    Few Questions About Loan (Credit Score, Reason) 11th Jun 17 at 9:00 PM
    Hey all!

    So, I want to get a loan to emigrate. Yes, I DO intend on paying it back.
    However, I have some questions and concerns...

    1) My Experian credit score is 908 with 1 small defaulted debt on file, what kind of loan can I expect to get? I guess an unsecured loan is my best option.

    2) Should I tell them I want to emigrate? I feel like they won't like this. Maybe I should say something else?

    Advice needed, thanks!
Page 1
    • zx81
    • By zx81 11th Jun 17, 9:10 PM
    • 12,537 Posts
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    zx81
    • #2
    • 11th Jun 17, 9:10 PM
    • #2
    • 11th Jun 17, 9:10 PM
    So

    1). Your score is fictional. Any credit will depend on your credit files, not a magic number.

    2) Not telling them the truth reason for the loan would be fraud.

    So.
    • DCFC79
    • By DCFC79 11th Jun 17, 9:15 PM
    • 29,559 Posts
    • 18,686 Thanks
    DCFC79
    • #3
    • 11th Jun 17, 9:15 PM
    • #3
    • 11th Jun 17, 9:15 PM
    Why the need to get a loan, can you not save up ?
    Je Suis Charlie
    • lynz68
    • By lynz68 11th Jun 17, 9:46 PM
    • 279 Posts
    • 263 Thanks
    lynz68
    • #4
    • 11th Jun 17, 9:46 PM
    • #4
    • 11th Jun 17, 9:46 PM
    Your credi score means nothing nobody sees it but you. Credit history and the ability to pay it back is what matters.

    The fact your going abroad is a big no no. Telling them anything else would be fraud.

    The fact you have a default, would be an issue anyway even if you weren't emigrating.
    • venison
    • By venison 11th Jun 17, 11:00 PM
    • 1,009 Posts
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    venison
    • #5
    • 11th Jun 17, 11:00 PM
    • #5
    • 11th Jun 17, 11:00 PM
    Agreed with the above
    #WeStandTogether
    • PeacefulWaters
    • By PeacefulWaters 11th Jun 17, 11:31 PM
    • 6,587 Posts
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    PeacefulWaters
    • #6
    • 11th Jun 17, 11:31 PM
    • #6
    • 11th Jun 17, 11:31 PM
    No chance of getting an unsecured loan for this.

    Like you'll give an honest forwarding address!
    • AndyPix
    • By AndyPix 12th Jun 17, 11:02 AM
    • 2,428 Posts
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    AndyPix
    • #7
    • 12th Jun 17, 11:02 AM
    • #7
    • 12th Jun 17, 11:02 AM
    I have to pipe up here ..


    I see it banded about again and again on this forum that credit score from experian is meaningless.


    I know where you are coming from


    But i think this is false information as it is far from meaningless.


    The score that experian give you is not meaningless atall, it is a score that they compile from the analysis of your credit file.
    I know that experian do not lend money, but they will give similar weight to each aspect of your credit report that loan companies do.
    No , it wont be exactly the same as i am fully aware that each company has their own criteria etc etc


    But rather than being totally meaningless, it is rather a benchmark as to the overall healthiness of the contents of your file.


    I think we can all agree, that if your experian "score" is sub 100, then you have zero chance of obtaining credit , whreas an experian "score" of 999 indicates a healthy credit file and chances are you will get credit easily
    Yes, there will be exceptions - and no it is not difinitive.


    But it is FAR from meaningless


    /rant
    Running with scissors since 1978
    • Pixie5740
    • By Pixie5740 12th Jun 17, 1:18 PM
    • 10,633 Posts
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    Pixie5740
    • #8
    • 12th Jun 17, 1:18 PM
    • #8
    • 12th Jun 17, 1:18 PM
    Really? Even though people with bankruptcy on the Experian file have managed to achieve a score of 999?

    Besides your credit history, note that's history not score, is only one part of the application for a loan or a mortgage.
    Annual income twenty pounds, annual expenditure nineteen pounds nineteen and six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds nought and six, result misery.
    • AndyPix
    • By AndyPix 12th Jun 17, 1:34 PM
    • 2,428 Posts
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    AndyPix
    • #9
    • 12th Jun 17, 1:34 PM
    • #9
    • 12th Jun 17, 1:34 PM
    Im talking in general terms and i think you know what i mean ..


    Too many times i see an abrupt answer that just barks "ignore your score, it is meaningless" without the appropriate explanation.
    Followed by multiple (same) people thanking the posts ..


    Like I say, i know what you mean, but it is misleading to say it is meaningless as it is an indication as to the health of the file in general.
    Besides your credit history, note that's history not score, is only one part of the application for a loan or a mortgage.
    Originally posted by Pixie5740
    Agreed - However the score is an indication as to the state of the history.
    Really? Even though people with bankruptcy on the Experian file have managed to achieve a score of 999? .
    Originally posted by Pixie5740
    Citation needed
    Running with scissors since 1978
    • Candyapple
    • By Candyapple 12th Jun 17, 1:58 PM
    • 2,178 Posts
    • 1,673 Thanks
    Candyapple
    Really? Even though people with bankruptcy on the Experian file have managed to achieve a score of 999?
    Originally posted by Pixie5740

    Citation needed
    Originally posted by AndyPix
    Prime example: http://forums.moneysavingexpert.com/showthread.php?t=4099257

    Post #10 is really good on this thread:
    http://forums.moneysavingexpert.com/showthread.php?t=3158508

    And from the FOS's mouth: Experian admit their "credit score" is pointless since lenders don't see it
    http://forums.moneysavingexpert.com/showthread.php?t=4858881


    Don't forget that not all lenders report to all 3 CRAs, so someone who has a default/CCJ it may only have been reported to Equifax - hence they are given a 999 (or similarly high) score with Experian and then come on here crying about '999 credit score but keep getting rejected!'.
    I'm a Board Guide on the Credit Cards, Loans, Credit Files & Ratings boards. I'm a volunteer to help the boards run smoothly, and I can move and merge threads there. Any views are mine and not the official line of moneysavingexpert.com
    • AndyPix
    • By AndyPix 12th Jun 17, 2:38 PM
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    AndyPix
    Thanks CandyApple - I had to chuckle at that thread


    Well obviously there are exceptions then and I would guess that there is some kind of technical issue at play there - We didnt actually see the credit report in question did we ?? Perhaps the 6 defaults had dropped off that month .. who knows ..


    I stand by my assection that the experian credit score, whilst not being a universal score used by lenders, does serve as a benchmark of how you are likely to be viewed by these potential lenders


    And is FAR from meaningless - as it is posted as time and again
    Running with scissors since 1978
    • Pixie5740
    • By Pixie5740 12th Jun 17, 2:48 PM
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    Pixie5740
    I know that experian do not lend money, but they will give similar weight to each aspect of your credit report that loan companies do.
    Originally posted by AndyPix
    Where's your citation for this?
    Annual income twenty pounds, annual expenditure nineteen pounds nineteen and six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds nought and six, result misery.
    • AndyPix
    • By AndyPix 12th Jun 17, 2:54 PM
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    AndyPix
    Where's your citation for this?
    Originally posted by Pixie5740

    You need citation ? Surely this is common sense !!!
    Notice i say "will" and not "do" , and also i say "similar" and not "same"


    I suspect you are being obtuse and know exactly what i mean


    Defaults on account = score goes down
    Good payment history = score goes up


    etc
    Come on !!
    Running with scissors since 1978
    • MEM62
    • By MEM62 12th Jun 17, 2:59 PM
    • 1,244 Posts
    • 886 Thanks
    MEM62
    I have to pipe up here ..

    I see it banded about again and again on this forum that credit score from experian is meaningless.

    I know where you are coming from

    But i think this is false information as it is far from meaningless.
    Originally posted by AndyPix
    I stand by my assection that the experian credit score, whilst not being a universal score used by lenders, does serve as a benchmark of how you are likely to be viewed by these potential lenders
    Originally posted by AndyPix
    It is meaningless on the basis that, nobody other that you sees it. Lenders do not use it and importantly, even the CRA's themselves cannot explain how it is derived. The truth is that it is a marketing tool that many have bought into used to promote the CRA's subscription services. To accept your argument that it is a benchmark the 'score' it would need to be consistently applied based on an individual's circumstances, and there is plenty of anecdotal evident on these forums to suggest that this is not the case, and also have some kind of reference point in order to have any kind of validity or serve as a measure. Neither of these apply.

    As for an indicator of how lenders would view you, this argument would also struggle to hold water as each lender has their own criterion. In addition to which, lending decisions are not always based purely on your credit standing as lenders, on occasions, will target a certain demographic or type of business. There is no way a CRA can predict these factors.

    The number really is meaningless by any measureable standard.
    • Pixie5740
    • By Pixie5740 12th Jun 17, 3:02 PM
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    Pixie5740
    No I'm not being obtuse. I am genuinely asking for a citation because I think it's pish. For example, Experian might drop your score because you have borrowed money from Wonga whereas there are lenders who just out and out reject anyone with a payday loan showing on the credit files. Likewise, Experian would reduce your score for opening up a new current account with First Direct (and getting the £125 for switching....very MSE ) yet opening that current account means First Direct are more likely to give you a credit card not less likely.
    Annual income twenty pounds, annual expenditure nineteen pounds nineteen and six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds nought and six, result misery.
    • AndyPix
    • By AndyPix 12th Jun 17, 3:10 PM
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    AndyPix
    You are quoting specific examples there and i did say that there will be exceptions.
    I stand by my view that it is a benchmark, an indication if you will ..


    But hey - you keep on high fiving each other every time you repeat it and ignore constructive feedback about your advice


    Whatever gets your "thanks" up eh ??
    Running with scissors since 1978
    • Candyapple
    • By Candyapple 12th Jun 17, 3:12 PM
    • 2,178 Posts
    • 1,673 Thanks
    Candyapple
    I stand by my assection that the experian credit score, whilst not being a universal score used by lenders, does serve as a benchmark of how you are likely to be viewed by these potential lenders
    Originally posted by AndyPix
    But does it? Quick example, OP said he has a score of 908 with a default. My last Experian score was 846 and that’s with 0 defaults/late payments/CCJs, 15 year+ accounts held, 4 credit cards – 3 with zero balance and 1 with a low balance (cleared to make way for mortgage app) – all with no limits below £6k, high salary, bank accounts, mobile phone, on ER for 10 years+ etc. So basically as near perfect a history can be. And yet the 3 months preceding this, my score dropped by circa 150 points the month when I paid off my cards (£20k) and the following 2 months went up 40 points, and then back down to the low 700s. Only this month has it crept back up to 846.

    And my friend who is currently unemployed and has 1 Cap One card to her name with a low limit, has a score of 999.

    If only the scores from these companies didn’t exist, then it would force people to actually look and read their reports. Instead, I imagine the vast majority of people who look at their files (usually after being declined for something) will look at the score and wonder why if their score is so high why were they declined / not bother to scratch the surface further to see why they were declined (e.g. could have been due to affordability, high credit utilisation, being financially associated with someone etc.) But alas, Experian, Equifax and Call Credit all realise there’s big money to be made selling made up numbers.
    I'm a Board Guide on the Credit Cards, Loans, Credit Files & Ratings boards. I'm a volunteer to help the boards run smoothly, and I can move and merge threads there. Any views are mine and not the official line of moneysavingexpert.com
    • AndyPix
    • By AndyPix 12th Jun 17, 3:29 PM
    • 2,428 Posts
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    AndyPix
    Thanks Candyapple , I accept your point ..


    I can only go from my personal experience where i started off with a very low score ..
    I had late payments, a couple of defaults etc ..


    As i slowly fixed the contents of my file, and defaults dropped away, my score rose in accordance.


    Yes i did see it dip - and rise for that matter by a few points here and there, for no apparent reason
    And i accept that this is most likely due to a secret algorithm tweaking it to keep your interest in checking it and for no other reason


    But overall I would say that my score has always been a decent representation of the contents of my file.


    Obviously others milage varies


    I still disagree with the blanket statement that it is completely meaningless as for me at least , it wasnt
    Running with scissors since 1978
    • Pixie5740
    • By Pixie5740 12th Jun 17, 4:01 PM
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    • 14,607 Thanks
    Pixie5740
    You are quoting specific examples there and i did say that there will be exceptions.
    I stand by my view that it is a benchmark, an indication if you will ..


    But hey - you keep on high fiving each other every time you repeat it and ignore constructive feedback about your advice


    Whatever gets your "thanks" up eh ??
    Originally posted by AndyPix
    I take it that means you cannot provide any citation for your claim then?

    Maybe you enjoy cracking one off every time your credit score increases. Maybe you've worked very hard to increase your Experian score whereas I'm fortunate in that I don't find it onerous to pay my bills on time.

    You think your credit score means something, I think it's nothing more than a marketing tool and never the twain shall meet.

    Credit history, affordability and past dealings with the lender in question, those are what matter to lenders.
    Annual income twenty pounds, annual expenditure nineteen pounds nineteen and six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds nought and six, result misery.
    • AndyPix
    • By AndyPix 12th Jun 17, 4:09 PM
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    AndyPix
    I take it that means you cannot provide any citation for your claim then?.
    Originally posted by Pixie5740
    Of course I cant . In the same way that i cannot tell you the criteria that ANY lender uses - But of course you know that.

    Maybe you enjoy cracking one off every time your credit score increases.
    Originally posted by Pixie5740
    Maybe you enjoy cracking one off every time you get a "thanks" for repeating your abrupt statements to people asking for help.


    If you want to start insulting each other i am more than happy to oblige, however i was simply expressing my opinion - im sorry it differs to yours
    Maybe you've worked very hard to increase your Experian score whereas I'm fortunate in that I don't find it onerous to pay my bills on time.?.
    Originally posted by Pixie5740
    No - I worked very hard to better the contents of my credit file - The score followed in suite - hence my opinion on this matter.


    Lucky you that you "dont find it onerous" to pay your bills on time - But just so you know, not everyone has a perfect a life as you - hence the need for this very helpful forum
    You think your credit score means something, I think it's nothing more than a marketing tool and never the twain shall meet..
    Originally posted by Pixie5740
    It may be useful as a marketing tool, but to say it has no correlation atall on the contents of the report is just stupid
    Credit history, affordability and past dealings with the lender in question, those are what matter to lenders.
    Originally posted by Pixie5740
    Agreed - And as no body has access to any lenders list of criteria, the experian score is a close a proximity as the general public are likely to get
    Running with scissors since 1978
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