Credit Rating: How it works and How to improve it discussion area

Chrysalis

never-in-doubt wrote: »

Scores work by the lender, but the CRA's have started to sell their version which - we are trying to tell you - has no bearing on anything, as it is not based using the specific lenders scoring model (criteria), for instance Tesco may want housewives to apply and so score them higher than maybe RBS who may be looking for young professionals..... my point is that scoring is unique to each lender and each lender scores differently.

The scores that the CRA's sell (for a fiver or whatever) is designed to give you an idea of how a lender will perceive you, but they don't have a clue in reality because each lender scores uniquely which the CRA's are not privvy to - a lender does not divulge the scoring model or we could abuse it, the points allocated mean nothing to us anyway as they all combine to create an overall credit score and then with the CRA data they can see, this provides a fail (decline), pass (accept) or refer (adverse data or notice of correction on your Credit File). Dependant upon the score will depend upon the answer the system is programmed to give!

Hope that clears it up for you.

right so this is a new recent thing from CRA's then? if yes it makes sense as my report is now 2 years old.

never-in-doubt

Chrysalis wrote: »

right so this is a new recent thing from CRA's then? if yes it makes sense as my report is now 2 years old.

Its been around a while - see here (but do not pay for it - waste of money!)

Experian: http://www.creditexpert.co.uk/credit-score.aspx

Equifax: https://www.econsumer.equifax.co.uk/consumer/uk/sitepage.ehtml;jsessionid=82440f91c57b08468773e526030f6:ugEC?forward=gb_elearning_credit24

CallCredit: http://www.callcredit.co.uk/credit-risk.aspx

sly_dog_jonah

izools wrote: »

Experian are much better at linking addresses however.

That, as I've found out to my cost recently, is not entirely true.

Experian will only report accounts that exactly match the address which your council publishes for you on the Electoral Roll.

Ours it turns out is very wrong: our flat number is reported as a house number, our flat block name is published as the street, and the street as a district. This doesn't match the Royal Mail database which all my current credit accounts get statemented to, so these accounts don't appear on any searches that companies do with Experian.

When a company searches for you at your current address, Experian will try to match it to the electoral register, and then only report accounts associated with that address. Hence all my accounts on the correct postal address are missing, and it looks to a new lender like I have only settled, not active credit accounts: bad news.

I tried to fix this with Experian this weekend. They couldn't add the correct royal mail address to my creditexpert account, as it didn't match the electoral register. They said they could send out a paper report instead, listing the correct address as a 'previous address' (if only for a month) to make the accounts show up. But as I pointed out to them, the paper search isn't what a new lender would see. Experian insisted there was nothing their systems could do to join the two addresses, the electoral roll has to be fixed by the data source, ie my council.

Frankly I think this an unacceptable answer from Experian and will be complaining once a supervisor is available during working hours. A typo in the data provided by the council should not erase half your credit history.

First though I'm going to contact the council to see whether the erroneous electoral register information can be corrected and how quickly this will be reflected in the data sent to the CRAs.

Chrysalis

never-in-doubt wrote: »

Its been around a while - see here (but do not pay for it - waste of money!)

Experian: http://www.creditexpert.co.uk/credit-score.aspx

Equifax: https://www.econsumer.equifax.co.uk/consumer/uk/sitepage.ehtml;jsessionid=82440f91c57b08468773e526030f6:ugEC?forward=gb_elearning_credit24

CallCredit: http://www.callcredit.co.uk/credit-risk.aspx

ok so doesnt explain why I have not got a rating. I am not planning to pay for it just trying to make sense that when I got my credit report it had no rating on it.

callcredit did give me a rating online once but I never considered them to be an agency. Incidently CC explained how they did the scoring and they used the postcode and type of house as part of it.

sly_dog_jonah

Moggles wrote: »

That depends, to some extent, on where your most recent credit history 'lives' May I ask which other credit facilities, besides your current account(s), are held in your name? (Include catalogues, store cards, mobile phones etc. not just credit cards and your overdraft.) Anything with credit facilities will leave footprints on credit files.
Yes, where financial affairs are concerned, it's essential to be consistent. Other things being equal, the address that's shown on public records, such as the electoral register, is the one you should be using to correspond with your bank(s).

I'd have to disagree I'm afraid. It is much better to get the Electoral Register entry updated to match the Royal Mail database entry, since this is what companies use when you fill in your address online or over the phone and they ask you:

What is your postcode and house/flat number? (ie address lookup)

See my post above about the consequences of mismatches.

I'd rather not have postal statements go missing because I've provided an incorrect electoral register-matching address.

You can check the Royal Mail database entry for your address here:

http://postcode.royalmail.com

Use the 'Find an Address' option and fill in just your postcode, then select the right entry to see the full address. This is what you should make sure your electoral register address matches, and if not get it updated by contacting your local council. Likewise you should make sure all your accounts' statements exactly match that address.

izools

sly_dog_jonah wrote: »

That, as I've found out to my cost recently, is not entirely true.

Experian will only report accounts that exactly match the address which your council publishes for you on the Electoral Roll.

Ours it turns out is very wrong: our flat number is reported as a house number, our flat block name is published as the street, and the street as a district. This doesn't match the Royal Mail database which all my current credit accounts get statemented to, so these accounts don't appear on any searches that companies do with Experian.

When a company searches for you at your current address, Experian will try to match it to the electoral register, and then only report accounts associated with that address. Hence all my accounts on the correct postal address are missing, and it looks to a new lender like I have only settled, not active credit accounts: bad news.

I tried to fix this with Experian this weekend. They couldn't add the correct royal mail address to my creditexpert account, as it didn't match the electoral register. They said they could send out a paper report instead, listing the correct address as a 'previous address' (if only for a month) to make the accounts show up. But as I pointed out to them, the paper search isn't what a new lender would see. Experian insisted there was nothing their systems could do to join the two addresses, the electoral roll has to be fixed by the data source, ie my council.

Frankly I think this an unacceptable answer from Experian and will be complaining once a supervisor is available during working hours. A typo in the data provided by the council should not erase half your credit history.

First though I'm going to contact the council to see whether the erroneous electoral register information can be corrected and how quickly this will be reflected in the data sent to the CRAs.

Ah sorry, I was referring to a different kind of linking.

I have lived at several addresses.

Like this:

Address 1: Positive credit account data
Address 2: Negative credit account data
Address 3: Positive credit account data
Address 4: Positive credit account data
Current address: Positive credit account data

When I apply for credit, I need to supply my current address, and my previous address (Address 4).

If the lender searches Equifax, they see the data at my current address, Address 4 (provided on the application) and Address 3 (linked from Address 4). They do not see my adverse credit history because Address 4 is not directly linked to address 2.

If the lender searches Experian, however, they see the data at all of my addresses despite Address 4 only being directly linked to 3.

Moggles_2

sly_dog_jonah wrote: »

I'd have to disagree I'm afraid. It is much better to get the Electoral Register entry updated to match the Royal Mail database entry, since this is what companies use when you fill in your address online or over the phone ...

Yes, discrepancies often arise. An extra line may be inserted/omitted or the order reversed, where new build, a house name or a block of apartments is involved or where a landlord has converted a house to flats. It's not necessarily an error. Very often it comes down to a difference of opinion as to how an address should be formatted, rather than an actual mistake.

With luck, the ER and Postal Address Finder formats will match and it'll be purely a question of sticking with that version. Provided that you're consistent when you apply for credit facilities, bank accounts or to the credit reference agencies, you should be okay.

If they don't match, the ER may be the more difficult to amend, if there are repercussions for other electors.

Note: if your address is formatted differently on council tax bills and the like, that's of no consequence, but the electoral roll version counts when applying for credit

sly_dog_jonah

izools wrote: »

Ah sorry, I was referring to a different kind of linking.

Thanks izools, didn't mean to sound like I was disagreeing with you, just wanted to make people aware that Experian have limitations to their systems which can seriously impact your credit worthiness.

sly_dog_jonah

Moggles wrote: »

Yes, discrepancies often arise. An extra line may be inserted/omitted or the order reversed, where new build, a house name or a block of apartments is involved or where a landlord has converted a house to flats. It's not necessarily an error. Very often it comes down to a difference of opinion as to how an address should be formatted, rather than an actual mistake.

With luck, the ER and Postal Address Finder formats will match and it'll be purely a question of sticking with that version. Provided that you're consistent when you apply for credit facilities, bank accounts or to the credit reference agencies, you should be okay.

If they don't match, the ER may be the more difficult to amend, if there are repercussions for other electors.

Note: if your address is formatted differently on council tax bills and the like, that's of no consequence, but the electoral roll version counts when applying for credit

Thanks moggles, its definately our Electoral Roll entry that is wrong. And I presume it affects our entire 100+ dwelling flat development (10 year old 'new build'). When it comes to notifying a new company that you are apply for credit from of your address, it's often impossible (particularly with online applications) to modify the address suggested by the postal address database (eg to make it match the ER)

I'll see what the council say when they open up this morning.

sly_dog_jonah

I spoke to the Council this morning who insist it shouldn't be reported as a Flat since it is a purpose built block of apartments, rather than a conversion. They are going to double check and get back to me, but they say have had numerous complaints about Experian before and not transposing the published electoral roll data accurately.

So I went back to Experian who seem to have more competant people on the phone today than Saturday, who will try to raise a request to get the two addresses merged on their systems.

On the bright side, I reapplied for the Virgin card on Saturday, providing both variants of address (one given as a previous address for 1 month residency) and the application was accepted, I got the T&C agreement email through this morning

I'll still pursue the correction though because it shouldn't be necessary to provide a variant of your current address as a previous address.