The Sub Prime Credit Thread - Part IV

Its-A-New-Age-Thing

http://www.experian.co.uk/www/pages/responsibilities/compliance/consumer_credit.html

2 other useful links especially the second

http://www.csa-uk.com/media/editor/file/Consumer%20Credit%20Directive.pdf

PROLIANT

Read:

http://www.publications.parliament.uk/pa/cm200910/cmselect/cmtreasy/197/197.pdf

Its-A-New-Age-Thing

what about this quote peeps how many times have i read credit agency scores are USELESS

Experian notes that “Experian does develop and provide credit scores but most lenders will
use their own, although they use Experian scores as part of their decision process”.

Zack1

Its-A-New-Age-Thing wrote: »

what about this quote peeps how many times have i read credit agency scores are USELESS

Experian notes that “Experian does develop and provide credit scores but most lenders will
use their own, although they use Experian scores as part of their decision process”.

That's rubbish..... They are the ones giving the money, they decide who they give it to and who's a risk/not a risk. If Natpest decide that someone with 1 missed payment in the last 3 years is a risk then it doesn't matter what score Experian or the other con artists give, it's Natwest's decision that counts - and they'd build it into their rating system where if you had missed a payment you'd get docked a lot of "points", which would basically mean a decline. Experian only uses partial information, and assess that how they see fit. Lenders use all the information from CRAs plus whatever info you supply (employment status, wage etc) to make the score, and ultimately the decision. That's why you can be declined at one place and accepted at another with exactly the same circumstances - the place that accepts you see you as an acceptable risk for their business model, the one that declined you didn't.

Its-A-New-Age-Thing

Zack1 wrote: »

That's rubbish..... They are the ones giving the money, they decide who they give it to and who's a risk/not a risk. If Natpest decide that someone with 1 missed payment in the last 3 years is a risk then it doesn't matter what score Experian or the other con artists give, it's Natwest's decision that counts - and they'd build it into their rating system where if you had missed a payment you'd get docked a lot of "points", which would basically mean a decline. Experian only uses partial information, and assess that how they see fit. Lenders use all the information from CRAs plus whatever info you supply (employment status, wage etc) to make the score, and ultimately the decision. That's why you can be declined at one place and accepted at another with exactly the same circumstances - the place that accepts you see you as an acceptable risk for their business model, the one that declined you didn't.

ZACK its taken DIRECTLY FROM PROLIANTS OFFICIAL 197 REEARCHED DOCUMENT

MUST BE TRUE

ahh well u think u have the industry sussed THINK AGAIN lol

:A

Zack1

Its-A-New-Age-Thing wrote: »

ZACK its taken DIRECTLY FROM PROLIANTS OFFICIAL 197 REEARCHED DOCUMENT

MUST BE TRUE

ahh well u think u have the industry sussed THINK AGAIN lol

:A

I haven't read it... And a few companies may well use Experian's score but the major companies will use their own systems for assessing risk, making the scores useless.

Why can I get a student account with Natpest and not with Halifax then when I applied for both on the same day? Because Halifax score me differently and don't want me under their business model, that's why. Why can my friend not get an o2 contract but can get a Three one? Because Three and o2 must've scored her differently.... They don't just decline people for the fun of it, every person they take makes them money, but they have set levels of risk

Its-A-New-Age-Thing

Zack1 wrote: »

I haven't read it... And a few companies may well use Experian's score but the major companies will use their own systems for assessing risk, making the scores useless.

Why can I get a student account with Natpest and not with Halifax then when I applied for both on the same day? Because Halifax score me differently and don't want me under their business model, that's why. Why can my friend not get an o2 contract but can get a Three one? Because Three and o2 must've scored her differently.... They don't just decline people for the fun of it, every person they take makes them money, but they have set levels of risk

..........i think its bang on mate HOWEVER i think it APPLIES SPECIFICALLY TO "NEW CUSTOMERS" IE im taking out a product with rbs or natwest or alliance and leicester and so forth HOWEVER IVE NEVER BEEN A CUSTOMER OF THERES AND FOR THAT MATTER THEY HAVE NO BEHAVIOURAL SCORE OF ME BUILT UP.................

THATS WHEN ITLL BE USED AS PART OF A DECISION SAME WITH EQUIFAX

:beer:

as a PURELY BASIC MODEL imagine this lets say im after a HSBC ACCOUNT

the one i want has an internal score needed of say 800 my personal circumstances fit me into that account with say a score of 700 HOWEVER im awarded ANOTHER 100 POINTS DUE TO MY EXPERIAN/EQUIFAX SCORE hey presto ive hit 800 an the account is mine

Zack1

Its-A-New-Age-Thing wrote: »

the one i want has an internal score needed of say 800 my personal circumstances fit me into that account with say a score of 700 HOWEVER im awarded ANOTHER 100 POINTS DUE TO MY EXPERIAN/EQUIFAX SCORE hey presto ive hit 800 an the account is mine

I think you're getting confused with the data on your report and your scores these rip off merchants give out. HSBC don't care what score Equifax give you, Equifax could give you a score of 9999999999999 and HSBC can decline you.

The DATA on your report may give you the extra 100 points, but those 100 points are HSBC's and they make use of your data as they see fit. If they only want to give you 10 points for the data then so be it. Halifax may give you 52 points, Natwest may give you 73 and hey Barclays may give you 305 for it!

If you don't have a internal behavioural score they will make their own score from scratch. That is why having an internal score is an ADVANTAGE and only that. The internal score only forms PART of it, otherwise I'd be on 20 grand credit limits with Natpest by now!!!

They use the data the CRAs hold and the information you input to make you a score. If there is any internal information available they will also factor that in, if there isn't then they won't

Right lets say I am going to go to Lloyds, I've never had anything to do with them so they have nothing on me from the past. If I go to apply for something now I will be asked for my name etc, this is so they can access my credit file and obviously check who I am. They will also gather data about my existing accounts and any CCJs etc - I give consent to this. The CRAs do not hold information on my employment status or my accomodation situation, therefore I would have to put in that I'm unemployed/student (depending on what is offered on each form) and that I'm "living with parents" as that's always offered.

They would the base data gathered about me, from the CRAs, plus the information I've freely given them on employment status etc, to make me a score. That score is a score they have worked out using years of analysis etc etc. That score would change if I applied a few weeks later with exactly the same information (scoring models are always being tweaked). It's up to each company how much they weight internal scores. It is up to Lloyds how they view the fact I'm a student, they may view it VERY badly, I don't know that's up to them and their management and the general direction they want their business to go in. Natwest on the other hand may want to attract students so they may actually see it as a good thing.

That score that's generated when I finish is also nothing to do with the score a CRA would give me, because the CRAs do not score the same as Lloyds would and they also do not ask me for or take into account the same information that Lloyds would take into account - therefore how can the CRA scores be anything other than a made up number?

I've decided my credit score for this week is 15553483262742685472. I could go and see what Equifax want to give me as a score, but they both mean the same - nothing at all! I'm about to take out another contract with o2, I care about the score they are going to give me not the score CRAs want to give me! And hey actually I don't want that score I made for myself anymore, I'll have 11753483512742682413 instead.....

Its-A-New-Age-Thing

zack thats came from an OFFICIAL PUBLICATION EXPERIANS NOT GONNA LIE ABOUT IT ARE THEY

anyways im loggin of we will agree to disagree

ill stick with the LEGALY PUBLSHED FACTS MATE

though i do respect ure opinion

goodnight

:beer:

Zack1

Its-A-New-Age-Thing wrote: »

zack thats came from an OFFICIAL PUBLICATION EXPERIANS NOT GONNA LIE ABOUT IT ARE THEY

anyways im loggin of we will agree to disagree

ill stick with the LEGALY PUBLSHED FACTS MATE

though i do respect ure opinion

goodnight

:beer:

:rotfl: fair enough....good luck if you're relying on CRA scores, you're going to need it