My new experian credit score

kyllle

Hi all,

I have had 3 credit scores with experian since 15/02/2008:

15/02/2008: 401
15/01/2009: 774
11/08/2009: 999

At the time of my first credit score I really had no control over my money or direct debits etc, I was soooo loose with payments and totally mismanged everything, 15/02/2008 was my wakeup call about getting my finances in order and increasing my credit score. Basically since then I have closed down unused accounts, opened a cashplus creditbuilder account which I have topped up with plenty of money to insure I never miss a monthly payment, I have managed to decrease my barclaycard limit from £2500 to £250 were I have a balance of 0 and use this card to buy small priced items then immediately pay the balance, I set up a direct debit for my phone bill also and have basically kept a good leash on my finances.

My question though is is the new 999 score to be trusted? Can I actually be confident if I apply for a loan etc I will actually have a good chance of getting it? I dont want to apply for a loan, be rejected then have this dent my confidence and my rating for getting other loans. I dont plan on applying for any loans at present but I just thought Id ask now.

Thanks in advance!

Kyle

YorkshireBoy

kyllle wrote: »

...is the new 999 score to be trusted? Can I actually be confident if I apply for a loan etc I will actually have a good chance of getting it?

No, and no!

Experian don't know your income, household income, homeowner/renter, or any of the other stability criteria involved in lenders' scoring such as time with bank, time in job, etc.

Lowering the Barclaycard limit to £250 may have been a bad move on your part, because anyone searching your file may think the lender has reduced it, or you've always had such a low limit...ie, you're not (credit)worthy of a larger amount.

The fact your BT bill is paid by DD is irrelevant in the context of your question.

BASFORDLAD

Sorry but the ratings given be experian mean totally nothing, they are just a marketing ploy. They mean nothing when it comes to applying for finance and using thier own credit score cards.

Dont be fooled by them.

CannyJock

kyllle wrote: »

Basically since then I have closed down unused accounts

I have managed to decrease my barclaycard limit from £2500 to £250 were I have a balance of 0

I set up a direct debit for my phone bill

All sounds good, but does mean that the only credit you have on your credit report now is £250 of a credit limit with Barclaycard and your phone bill. Some lenders would be more reassured by seeing larger amounts of credit managed over a period of time.

kyllle wrote: »

My question though is is the new 999 score to be trusted? Can I actually be confident if I apply for a loan etc I will actually have a good chance of getting it?

Only thing guaranteed is Experian have charged you £5.95 for each of those scores

As others have said, I wouldn't trust it. From Experian's own FAQ:

You don't have a single credit rating, as every lender uses a different formula.

and

Your Experian Credit Score is only a guide to help you to see how your credit report information may affect a lender's credit decision. It is not a guarantee that you will, or won't, be granted credit.

and

critically, the Experian Credit Score doesn't take any account of your income (Experian don't know that but lenders will ask for it) so they have no way of knowing how affordable your current credit commitments are.

savagej

Is your phone bill with BT? Just wondered if they ever put account conduct information onto your credit file.

BASFORDLAD

Its a con for easily fooled people.

BASFORDLAD

savagej wrote: »

Is your phone bill with BT? Just wondered if they ever put account conduct information onto your credit file.

no they dont unlike virgin (which depends on which original cable franchise area you are in)

kyllle

hey,

no i was talking about my mobile contract with orange, so do you guys think i should try to up my limit again with barclaycard?

Innocent_Guy

People stop encouraging this poster to rack up more debt!

Other lenders can see your credit limit history and see your balance......

They will be able to tell that barclaycard has not reduced it. Having low debt to income improves your chances of being accepted.

The onlything that may happen if you keep a low balance on B/C is that B/C will reduce your limit if they think you are not using it.

davethorp

When will these people learn that these scores are meaningless

My score generator HERE is just as meaningful as the scores generated by the CRAs

EDIT that was a close one.... just noticed my generator had broken down making it.... still as accurate as the CRAs. Fixed now anyway

Moggles_2

Innocent_Guy wrote: »

Other lenders can see your credit limit history and see your balance. They will be able to tell that Barclaycard has not reduced it ...

Not so, unfortunately.

Lowering limits leaves no record on your credit file of the former more generous one. Nor will your credit files show they were reduced at your request (as opposed to the lender's decision).

Lowering credit limits can affect future applications for credit if you overdo it. Also, you may not be able to reinstate the former limit, should you change your mind later.

So, if you want to reduce your available credit, it's better to pay off the balance and cancel a card completely, as Martin advises. Cards that are closed down and marked "settled" stay on your file for six years and indicate that you can handle decent-sized credit limits well