CRA's Do they ever do credit scoring for lenders etc

Innocent_Guy

never-in-doubt wrote: »

Perfect sense mate and I totally agree - the term you are looking for is called CAIS (credit account information sharing) which is a monthly score to the lender using pre-determined criteria against other borrowings set by the CRA's as an 'acceptable revolving' level.

Cool,

Interesting.........

Cash_Flow

never-in-doubt wrote: »

Read the whole thread mate - this means nothing, what I am saying and is factual is that a lender cannot use a credit ref agency to score their whole card - of course the CRA scores parts of it, by way of scoring existing lending i.e. CAIS related data. This forms part 2 of all credit app's.

Part 1 - internal suitability/criteria
Part 2 - external data from CRA
Part 3 - adverse data from CRA
Part 4 - existing relationship points

I have read the thread and I note that some people think that credit reference agencies only supply raw data to the lender during a credit search.

I am of the belief that this is not the case.

Innocent_Guy

Cash_Flow wrote: »

I have read the thread and I note that some people think that credit reference agencies only supply raw data to the lender during a credit search.

I am of the belief that this is not the case.

What do you think they send then?

Ta

Cash_Flow

never-in-doubt wrote: »

Perfect sense mate and I totally agree - the term you are looking for is called CAIS (credit account information sharing) which is a monthly score to the lender using pre-determined criteria against other borrowings set by the CRA's as an 'acceptable revolving' level.

CAIS refers to the credit account information held by Experian. Lenders provide information on accounts held with their customers. In return, lenders can view the same level of information when they make a search of our records during an application for credit. For example, banks that provide only information on accounts with a history of arrears can view only defaulted and delinquent accounts.

Are you sure CAIS is the correct term used for monthly credit score that the likes of Barclaycard Lloyds etc etc recieve from the CRA's ??

Cash_Flow

Innocent_Guy wrote: »

What do you think they send then?

Ta

Raw data and in some cases a credit score.

never-in-doubt

Cash_Flow wrote: »

Raw data and in some cases a credit score.

Nope, cannot be done as the main basis of this thread has suggested. There would be a major conflict of interest if the people that protect (make me laugh) our data also dictate what facilities we are allowed - you think any governing body will sit back and allow this?

I have actually checked with the ICO and await their response.

I don't understand why you guys are sucked into this false belief that the CRA's are some mighty being with unlimited powers! They do not hold a consumer credit licence to offer credit and so any score generated factually or otherwise will never be taken as truth due to unstability of source and unregulatory status.

The CRA's can only offer what they interpret to be a risk score based on factual account (CAIS) data. They cannot pre-determine pass/reject rates for a specific lender as this would be almost impossible to a) govern & b) manage.

never-in-doubt

Cash_Flow wrote: »

I have read the thread and I note that some people think that credit reference agencies only supply raw data to the lender during a credit search.

I am of the belief that this is not the case.

They do only supply raw data. Being under the belief and a factual response is two different things mate!

Ok, a lender has a credit card and they want to target it to 18-25 year olds, the reason being it will be easy pickings. Therefore, they have to set up a score card to attract a high pass rate for those indivuduals falling within that scope.

option a.
The lender goes to the CRA and obtains a blanket scorecard which is a system generated scorecard of all people with the set criteria given. In this instance the lender wants young people living at home with parents. It would be easier and cheaper for them to approach a CRA for raw data on subjects, i.e. buy a marketing list of candidates. The CRA however will instead offer to score for the lender by creating a scorecard that is set to the lenders requirements as they have the facility in place to do this. This then ties the lender to that CRA, for instance Monument to Call Credit or Barclays to Equifax.

The CRA has the advantage in that is has scored each element already and has built in hunter/cifas and cais data for the lender.

Note the CRA has provided a score card for the lender but the lender told them the scoring values - they did not use their own.

Tesco use this facility. GE Money used to use this facility.

obtion b.
The lender is big enough (i.e. HSBC/Barclays) so they bring out a new product and direct market it using their own scorecard, from past customer account details using a variety of internal scoring methods, external raw data and cais from CRA, internal policies and external adverse data checks. This is more expensive but not to a larger organisation that knows the product will sell.

The main banks all use this method, including M&S, MBNA and Santander Cards.


I hope that explains the main differences a little better.....

Cash_Flow

never-in-doubt wrote: »

Nope, cannot be done as the main basis of this thread has suggested. There would be a major conflict of interest if the people that protect (make me laugh) our data also dictate what facilities we are allowed - you think any governing body will sit back

I have actually checked with the ICO and await their response.

I don't understand why you guys are sucked into this false belief that the CRA's are some mighty being with unlimited powers! They do not hold a consumer credit licence to offer credit and so any score generated factually or otherwise will never be taken as truth due to unstability of source and unregulatory status.

The CRA's can only offer what they interpret to be a risk score based on factual account (CAIS) data. They cannot pre-determine pass/reject rates for a specific lender as this would be almost impossible to a) govern & b) manage.

Originally Posted by Cash Flow
I have read the thread and I note that some people think that credit reference agencies only supply raw data to the lender during a credit search.

I am of the belief that this is not the case.


Originally Posted by never-in-doubt
They do only supply raw data. Being under the belief and a factual response is two different things mate!

Have some factual in your pie:D

The credit scoring system allocates points for each piece of
relevant information and adds these up to produce a score.
When your score reaches a certain level then we will generally
agree to your application. If your score does not reach this level,
we may not. Sometimes scores are calculated by a CreditReference Agency and we may use these in our assessment

Source:

http://money.marksandspencer.com/pdf/CreditScoring.pdf

I never said once said they grant or offer credit.

For the record I stated that depending on the lender (client) who conducts the credit search, both raw data and a credit score is provided by the CRA.

bert&ernie

Here we go again. Why is it so hard to accept that CRAs can and do provide credit scores?

never-in-doubt

bert&ernie wrote: »

Here we go again. Why is it so hard to accept that CRAs can and do provide credit scores?

because they quite simply do not! What is so hard to grasp with that little fact?