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

never-in-doubt

bert&ernie wrote: »

CRAs do issues scores based on a specific individual using their own scorecards. They don't make credit decisions, but the scores they provide may be used by the lender to do so.

Right the above is a good way of describing it - I actually part agree but you're slightly awry with another!

CRAs do issues scores based on a specific individual using their own scorecards:
I can accept some of that, the CRA scorecard means nothing to a lender and any lender that took a scorecard designed by a CRA as basis for their lending criteria would be bonkers. For instance, there has to demographic and persona qualifying criteria that the CRA would not be able to predict - this is where I use the term 'blanket score' meaning the result is based loosly on the score that you can pay £6.95 for and then get declined to a matched product.

They don't make credit decisions:
Agreed.

the scores they provide may be used by the lender:
May be used by the lender - that is the key word here. As detailed above, it would be both impractical and unrealistic for any lender (mainstream or otherwise) to risk their product based on 3rd party data that would be supplied in a very 'raw' format with no basis of proven history.

bert&ernie wrote: »

I'm sure there is a crossed wire or misunderstanding somewhere.

Me too - I think we are saying the same but in different ways! If we were conversing then i'm sure we'd actually agree on this one! Without wanting to play on words I think it is the words themselves that are making us split hairs.....

bert&ernie wrote: »

btw, do you have to get up in the morning, cos I do? I've had a !!!!! of a week so far (damned regulatory projects!), but thankfully I'm off on Friday so [STRIKE]tomorrow [/STRIKE]today s the end of the week for me!

LOL, tomorrow is today isn't it? LOL. Am working nights so up til 7am anyway :mad: :mad: But allows me plenty of time to "try and help others" on my main threads......

never-in-doubt

p.s. go to bed!

bert&ernie

I refer back to my post #62

The lender has no knowledge of the CRA's scorecard - all they get is the score. They do their own analysis to work out how predictive this is, for them. Thats the only reason why I invited Ritchie74 to comment - he could offer an explanation of this.

CRAs offer retro scores to enable their clients - the lenders - to assess the value of their product.

When a consumer pays for their own score, they are paying at the very least 10 times as much for something that is pretty much meaningless to them - they don't know how the lender will interpret this (or even if this is the same score offered to lenders)

bert&ernie

never-in-doubt wrote: »

p.s. go to bed!

Will do. Might not be able to comment further until Friday. I can get MSE on my phone, but I hate typing anything more than a few sentences on the touch-screen keyboard, so it may not seem that I have a lot to say...

never-in-doubt

bert&ernie wrote: »

Will do. Might not be able to comment further until Friday. I can get MSE on my phone, but I hate typing anything more than a few sentences on the touch-screen keyboard, so it may not seem that I have a lot to say...

LOL, flash get with the iPhone! I have Nokia N97 (and the N96 for that matter) and love it - to me it beats the iPhone but then again, boils down to opinion! hehe

goodnight troublesome one!

bert&ernie

never-in-doubt wrote: »

LOL, flash get with the iPhone! I have Nokia N97 (and the N96 for that matter) and love it - to me it beats the iPhone but then again, boils down to opinion! hehe

goodnight troublesome one!

Pah! I dont have an iPhone - I have an android phone - the HTC hero.

The N97 is the one with the slide out full qwerty right? I dismissed that a little to hastily I think. On screen keyboard is fine for short bursts of text, but isn't so good for long e-mail/posts etc.

Night.

never-in-doubt

bert&ernie wrote: »

Pah! I dont have an iPhone - I have an android phone - the HTC hero.

The N97 is the one with the slide out full qwerty right? I dismissed that a little to hastily I think. On screen keyboard is fine for short bursts of text, but isn't so good for long e-mail/posts etc.

Night.

Ooooh I wanted the HTC Touch Pro but Voda only done it in business deals so went for N97 and glad I did..... Mrs got the Samsung Jet which again, is quite decent but very similar in touch and size to the iPhone (not for me)....

The N97 has the full qwerty - yes, its ok but the keyboard isn't traditional, its like 3 lines all with buttons neatly aligned which makes it hard to type in itself, I use the touch screen myself but emails is good cos the widget lets the account stay open on the dektop so you get regular updates.....

Ritchie74

Hi all, at risk of receiving abuse (!) here is what I know about bureau scores.

First off I do not work for a CRA, but worked with them and used their outputs in different role in risk management at 3 different UK banks/ financial services companies. Not read the full thread so apologies for any repitition in advance.

Here is what I know about CRA scores. There are many different scores banks buy from CRAs (application, marketing, behaviour, indebtedness to name the main 4). These are created by the bureaus and only the bureaus know the scorecard used to create. All the info used in the scorecard, banks also receive in the form of raw data (no searches, bal, lim & util, delinquency, public info to name a few).
As well as receiving the bureau score, banks use the raw data to compile their own scorecard to output an 'internal score'.

As the same raw data is used to create both, the correlation between scores is very high (as seen by deciling both scores and cross tabbing). Therefore internal scores are very indicative of bureau scores.... even though different scorecards are used, and likely different variables are used (a lender may put more weight on util, for eg, than the bureau does).
Now, as the bank knows exactly what is fed into their internal scorecard, this is used for application decisions. However, the bureau score can and is used also (I have seen them used for limit assignment at origination, and limit decrease strategies (if bureau score <x then reduce limit)).

One more thing, I have seen many posts where posters have stated they have a score of 999. This does not ring true with scores I have seen on our book. I can only assume that these scores are created purposly for the customer as an indication of how good/bad they are, but is not one of the actual scores the banks receive. Happy to be corrected on this, never having bought my own score.

In short, the scores (eg Delphi at experian, Risk Nav at equifax) can/are used in its entirity at banks, however all app scorecards I have seen are internally built.
Banks pay money for the scores and do indeed use them but I do not beleive these are the same as the ones you can buy.

Sorry for long post, R

Ritchie74

The above is what I know as fact and not willing to engage in an argument, it's the weekend (finally - what a week!) and off for a few beers :-)

ps I have an iPhone and bloody annoying sometimes, hence random words sometimes (had to edit above post twice upon re-reading.. Must have put one key wrong and instead of 'lenders' I put 'lenses' grr).

Have a great weekend and will keep checking in, but for now goodbye

never-in-doubt

Ritchie74 wrote: »

The above is what I know as fact and not willing to engage in an argument, it's the weekend (finally - what a week!) and off for a few beers :-)

ps I have an iPhone and bloody annoying sometimes, hence random words sometimes (had to edit above post twice upon re-reading.. Must have put one key wrong and instead of 'lenders' I put 'lenses' grr).

Have a great weekend and will keep checking in, but for now goodbye

Thanks Ritchie - makes crystal clear sense and am happy to accept that. It does not conflict with what I thought but does shed light on the missing links so thanks. Appreciate your input.

Will be interesting to see what the CRA's send back to me, I bet they will not give a representation as described above! No chance of that!

Enjoy the beers and have a good weekend. You too Bert&Ernie :beer: