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Barclaycard have damaged my credit rating are they liable?
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It is frustrating to see drivel posted by people who have no idea about the discussed subject.
Most self-respecting businesses which build credit scorecards will use the relevant Credit Agency's score as one of the inputs into the formula for their own score. So while the Experian score would not be the decider, having a better score will almost always mean that the lender score will also be higher unless some parameters in your application bring the score down (eg. excellent credit history, but very low income)
For those who don't understand, here is an EXTREMELY OVERSIMPLIFIED example of a model:
Bank Score = -200 + Experian Score + Salary/100 - Amount owed/10.
As to why people can get credit with low scores, a number of financial services companies will use a decision tree followed by a scorecard method. So on certain products earning a particular salary (as long as you can prove it with payslips) could allow you to bypass the need for an internal scoring system if the product is inherently subprime and you do not break regulatory or internal terms (indebtedness index, etc).
Note to the OP: If you hadn't gone overlimit or made a late payment, I would seriously doubt that your credit score went down as much as it did just because your open to buy went down. I would suspect that there is another issue here.
Right
I have just spoken to a friend who works in the underwriting dept of a bank. They mainly use Experian for credit checking. The data the recieve is an electronic version of the credit file. They do not get the the credit score that Experian sell to the public. They get no score at all, just the data from the file, and use this and other data with their own algorithms to make lending decisions.
The credit score you pay for from Experian is just Experians OPINION of how creditworthy you are based on your some of your credit history and current indebtedness.0 -
Right
I have just spoken to a friend who works in the underwriting dept of a bank. They mainly use Experian for credit checking. The data the recieve is an electronic version of the credit file. They do not get the the credit score that Experian sell to the public. They get no score at all, just the data from the file, and use this and other data with their own algorithms to make lending decisions.
The credit score you pay for from Experian is just Experians OPINION of how creditworthy you are based on your some of your credit history and current indebtedness.
Isnt that what everyone except herring has been saying!? It's quite obvious that lenders get the raw data from CRAs and interpret it in their own unique way. The experian score is the result of their own interpretation of the data they hold. It is in no way wrong, just in the same way that if MBNA scored you on a relative scale at 800, and barclaycard scored you at 500. What i'm saying is that every institutuon calculates worthyness in a different way, so different scores are certain to arise. Experian are just giving their opinion of your worthyness.
Herring seems to have some massive vendetta against experian and their credit scores - is yours low then herring? Are you angry that they only put you in the fair bracket?0 -
Hes probably just a bit peed off that he keeps paying for the things and has found out they are virtually worthless.Herring seems to have some massive vendetta against experian and their credit scores - is yours low then herring? Are you angry that they only put you in the fair bracket?0 -
Hes probably just a bit peed off that he keeps paying for the things and has found out they are virtually worthless.
What is he buying that is worthless? The way i see it, an experian score when applying for credit from lender A, is just as useful as a score from lender a when applying for credit from lender B. It's all relative, but still idicitive. It also depends on the CRA that the lender uses. For example, my experian shows only late payments on a credit card, when equifax shows it as arrangement to pay, my experian doesnt list my mobile phone as an account, but Equifax does..... so if the lender searched both, and scored each individually, i suspect there would be two different scores... [FONT="][/FONT]0 -
What is he buying that is worthless? The way i see it, an experian score when applying for credit from lender A, is just as useful as a score from lender a when applying for credit from lender B. It's all relative, but still idicitive. It also depends on the CRA that the lender uses. For example, my experian shows only late payments on a credit card, when equifax shows it as arrangement to pay, my experian doesnt list my mobile phone as an account, but Equifax does..... so if the lender searched both, and scored each individually, i suspect there would be two different scores...
Yes, but you knew that without having to pay an EXTRA £5.00 each time you wanted to check it.0 -
Please advise where you got this information from?
The credit scoring system allocates points for each piece ofReference Agency and we may use these in our assessment
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 Credit
Source:http://money.marksandspencer.com/pdf/CreditScoring.pdf0 -
Yes, but you knew that without having to pay an EXTRA £5.00 each time you wanted to check it.
Indeed, but i wasnt forced to pay an Extra £5.95 to check it (incedentally, i have checked my experian score). However, that wasnt the only entry on my file, i bought the score to see the aggrgate effect of all other elements on my relative worthyness.
As much of a cliche as it is, knowledge is power, the more you are informed, the better decisions you make. The experian score is just another small piece of information i can use to make my credit desicions. And for people who have no idea of the effect that individual items such as a few late payments or a high proportion of used credit etc, this score can be a good pointer for them.0 -
In answer to the OP, maybe your limit has been reduced as a result of your specific account management with Barclaycard? (just speculation). In that case, then as a result of this, they have reduced your limits, meaning that, you infact, are responsible for the reduction in worthyness?
On the other hand, i think it's pretty harsh of them to do something like this if you do manage teh card well. But as we know, lenders are still trying to reduce exposure to risk, even if the risk is low0 -
The credit scoring system allocates points for each piece ofReference Agency and we may use these in our assessment
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 Credit
Source:http://money.marksandspencer.com/pdf/CreditScoring.pdf
I think you will find that these are not the ones you pay £5.95 to see.0
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