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

UsetheFORCE

datlex wrote: »

I found out today that you don't just have 1 experian score!! For example I logged into experian check my score. It showed 908 which is good. On that basis I rang British Gas to get a credit meter and was shocked to fail their credit check. First lady refused to advise why. Second lady said score was 861. Less than the 908 I had got earlier in day. When I phoned Experian to find out why two different scores, the lady there said that they give different scores to different lenders depending on their criteria. Meaning it is not enough to have a good score on your credit report, your good score must have arisen for reasons that meet the lenders criteria................... which they won't tell you.

My Experian credit score was somewhere around 400 when British Gas gave me a Credit Account (GAS and ELECTRIC) six months ago, my score last month was about the same when I asked them to exchange prepay in my new property for credit... I did have a 4 month credit internal credit history with BG mind...

Clearly Experian's credit score has little correlation to their decisions...

black_taxi_2

I think credit rating agency is biggest scam going

mozza_65

Can anyone advise why they think I am getting turned down for credit when I have checked my files and my credit score is apparently 'excellent'? I've never had a problem in the past but have been turned down for a loan and a 0% finance option for a new computer over the past three months.

Prior to this, I hadn't made any applications for credit for several years. I have no missed or late payments and I've settled a few loans and credit cards during this period.

The only thing I can think of is that my bank account is still in my maiden name but I have been given credit since I married despite this anomaly. I have a good salary (60% more than the national average) so I don't think this is the source of the problem.

I know this thread is for advice on improving your credit rating but maybe someone can help to explain what you can do when your rating seems fine but you get turned down anyway!

BugsyBrowne

mozza_65 wrote: »

Can anyone advise why they think I am getting turned down for credit when I have checked my files and my credit score is apparently 'excellent'? I've never had a problem in the past but have been turned down for a loan and a 0% finance option for a new computer over the past three months.

Prior to this, I hadn't made any applications for credit for several years. I have no missed or late payments and I've settled a few loans and credit cards during this period.

The only thing I can think of is that my bank account is still in my maiden name but I have been given credit since I married despite this anomaly. I have a good salary (60% more than the national average) so I don't think this is the source of the problem.

I know this thread is for advice on improving your credit rating but maybe someone can help to explain what you can do when your rating seems fine but you get turned down anyway!

Your credit rating (score) from the likes of Experian is no indication wether you'll be excepted for credit as they sell scores for profit in other words its meaningless and has no bearing on your credit worthiness.

mozza_65

BugsyBrowne wrote: »

Your credit rating (score) from the likes of Experian is no indication wether you'll be excepted for credit as they sell scores for profit in other words its meaningless and has no bearing on your credit worthiness.

Okay, I get that but can anyone advise how you can improve your chances of getting credit when you have no blemishes on your file, a long history of settling credit accounts, a permanent job, a good salary, have been at your address for more than 5 years and are on the voter's role? Is there anything else you can do or does anyone else know what other information is taken into account by the credit companies algorithms?

black_taxi_2

not being on elector register is a red flag

also check they hav right address an a link address can mess u up

these two stopped me getting a credit card for holiday

i hav near perfect credit rating with experion but equifax 1/2 that because of wrong details on there file

BugsyBrowne

black_taxi wrote: »

not being on elector register is a red flag

also check they hav right address an a link address can mess u up

these two stopped me getting a credit card for holiday

i hav near perfect credit rating with experion but equifax 1/2 that because of wrong details on there file

I bet you're well chuffed that a company that doesn't lend money gives you a good score.

sfax

mozza_65 wrote: »

Can anyone advise why they think I am getting turned down for credit when I have checked my files and my credit score is apparently 'excellent'? I've never had a problem in the past but have been turned down for a loan and a 0% finance option for a new computer over the past three months.

Prior to this, I hadn't made any applications for credit for several years. I have no missed or late payments and I've settled a few loans and credit cards during this period.

The only thing I can think of is that my bank account is still in my maiden name but I have been given credit since I married despite this anomaly. I have a good salary (60% more than the national average) so I don't think this is the source of the problem.

I know this thread is for advice on improving your credit rating but maybe someone can help to explain what you can do when your rating seems fine but you get turned down anyway!

Did you check Equifax too? Definitely sort out your bank account name ASAP. Electoral roll needs to be up to date and show correctly on Experian and Equifax, and if you've moved in the last 2 years, this will count against you

And don't apply for anything else for at least 6 months as you are now 2 credit searches down and a third will be another negative mark against you

mozza_65

sfax wrote: »

Did you check Equifax too? Definitely sort out your bank account name ASAP. Electoral roll needs to be up to date and show correctly on Experian and Equifax, and if you've moved in the last 2 years, this will count against you

And don't apply for anything else for at least 6 months as you are now 2 credit searches down and a third will be another negative mark against you

Yes, I checked all 3 when I was turned down for the loan a few months ago and I have been on the electoral roll at my address for over five years. There was a mistake on Experian and Equifax as both had accounts for a different person with the same name as me attached to my file but these have now been removed. (This person's credit history was fine but I guess it might have made me look as if I had more credit than I did).

I know the decisions can vary from company to company so I may just not have fitted the profile but both rejections surprised me as (a) I had previously had a loan with the bank on which I never missed a payment and they had constantly been writing to me suggesting another and (b) the interest free credit on the computer was only £600 over 6 months so not exactly a high risk. This is what is making me think that there is something else. My bank account in my maiden name is not showing on my credit file so maybe this is what is causing the problem.

Anyway, as you say, I guess I just need to make sure all my accounts are in the same name and wait a while before applying for anything else. Luckily I am not in desperate need for credit!

kewns

Hello,
My question is how long would it take to be able to get a mainstream credit card? All I won’t is to get rid of these stupid high interest ones, capita one & Vanquis I mean 40% Apr. is a little high!!
So if anyone can look over this and see if they have a rough idea, thank you
I have a credit score of 361 due to Equifax
Credit Agreements
Good
You have 5 active accounts and 1 settled accounts on file at your current address. Credit grantors prefer that you have at least one or two accounts as part of your credit profile. Active accounts are preferred to settled accounts.

Excellent
Your oldest account is 6 year(s) 1 month(s) old. Credit grantors prefer to see accounts opened at least 36 months.

Fair
Your payment history shows that you have previously been 2 months in arrears. While you haven't been significantly overdue in making payments, some credit grantors may not grant you credit if you have other risk signals present on your credit report.
Excellent
All payments on your accounts are up to date.
Excellent
Credit reference agencies are receiving periodic updates from your credit grantor(s) that reflect you have made payments on time in the past.
Excellent
You have no defaults.
Electoral Roll
Fair
You are presently shown as registered on the electoral roll but your registration at your current address is for two years or less. Credit grantors generally prefer at least 3 or 4 years of confirmed residency as this indicates stability. Please review the section of your credit report entitled Electoral Roll .
Searches
Fair
You have had 3 search(es) for credit in the last six months. Credit grantors view more than one or two searches within six months unfavourably. Please review the section of your credit report entitled Previous Searches . For more information about credit searches and what you can do about them, click here .
Searches at your current address: 3

Court Information
Excellent
You have no information in your credit report that indicates a Court Judgment or other public record information such as a bankruptcy in your name. Credit grantors view this favourably.