Experian rated me 'Good'

chattychappy

Degenerate wrote: »

but in the meantime you can have a lot of fun using them.

Indeed ... a certain way to become "Poor"!

Dr_Cuckoo3

izools wrote: »

Ignore the score.

All creditors use their own rating systems, not Experian. They will refer to the data on your Experian credit file, but they will NOT use Experian's scoring system.

http://www.experian.co.uk/consumer-information/delphi-for-new-business.html

Experian wrote:

Delphi for New Business is a suite of highly predictive generic scorecards that can be used in any consumer credit application processing environment to assess the credit risk of new customers.

The Delphi for New Business scoring models are designed to predict the likelihood that a new applicant for credit will become a good payer if accepted. They are used by over 150 leading UK financial institutions generating in excess of 70 million scores each year

I wonder who these 150 leading UK financial institutions are then ?:idea:

Experian_company_representative

Dr_Cuckoo3 - thanks, I've clarified this several times on these forums but some continue to provide misinformation. The CRAs do build scoring systems for lenders and are experts at using credit data to measure and help lenders manage risk. However, the score consumers can get from CreditExpert, while built using similar reasoning, is not provided to lenders because it is restricted to credit data about the main applicant, so excludes credit report data from any financial associates and other data the lenders have at their disposal such as income, employment and so on.

If someone is managing several credit lines successfully then this will help their credit score regardless of whether the agreements fall under the Consumer Credit Act. A lot of the new data we are seeing on credit reports these days falls into this category - utilities, telecoms etc.

James Jones

karena

Izools, thank you so much for all your advice, have now been approved for a Barclaycard!

serious_saver

Hi Karena. i've only just read your post. Sorry I know you posted a while ago.

If you want to make sure you're on the electoral register you can try re-registering by going to https://www.aboutmyvote.co.uk (this goes for anyone else who may interested in registering as well). It's the website for the electoral commission and about half way down on the left is link to 'Register to vote'. Even though you are obviously already registered it will hopefully flag up on their system!

izools

Experian_company_representative wrote: »

Dr_Cuckoo3 - thanks, I've clarified this several times on these forums but some continue to provide misinformation. The CRAs do build scoring systems for lenders and are experts at using credit data to measure and help lenders manage risk. However, the score consumers can get from CreditExpert, while built using similar reasoning, is not provided to lenders because it is restricted to credit data about the main applicant, so excludes credit report data from any financial associates and other data the lenders have at their disposal such as income, employment and so on.

If someone is managing several credit lines successfully then this will help their credit score regardless of whether the agreements fall under the Consumer Credit Act.
James Jones

James - I've asked you before and I ask you again:

Creditors take into account the following information when assessing an applicants viability for credit:

Length of time at address
Length of time with employer
Length of time with bank
How long they have been on the electoral role
What their occupation is
What their marital status is
What their residential status is
What their income is
How their income compares with the cumulative limits of their credit lines
Whether they have any dependants
Whether they have any special instruction indicators showing on an account
Etc...

YOU however DO NOT take this information into account when providing a customer with a "Score".

Nor do you take into account the fact that many creditors not only risk-assess customers, but also profitability-assess them, too. They not only want low risk customers, but high margin customers, and customers who fall into their target market.

Now tell me I am wrong, cite an example proving this, and explain how - given the above information - your score can be trusted as a representative example of an applicants ability to get credit?

And if you have so much faith in the trustworthiness of your score, why have you stopped charging customers an extra fee?

And don't try to pass it off as offering customers better value because we both know this isn't true. Paying £14.99 a month to account for 3rd parties leaving inaccuate and defamatory data about you isn't good value.

EDIT:

A lot of the new data we are seeing on credit reports these days falls into this category - utilities, telecoms etc

Please show me a mobile phone agreement or energy supply agreement that contains a section requesting the customer enter into an agreement regulated by the Consumer Credit Act 1974.

You should know as well as anyone else that just because an account appears on a credit report, does NOT mean it is regulated by the Consumer Credit Act 1974. My Mobile Phone account is NOT.

Having checked my terms and conditions for my bank account, this is not regulated by the CCA 1974, either. The Overdraft is repayable on demand and not part of a regulated credit agreement.

http://www.hsbc.co.uk/1/PA_1_5_S5/content/uk/pdfs/en/99139-7_bank_account_ts&cs_dec10.pdf

Creditors know full well when assessing an applicant for credit that Utility accounts are in no way shape or form an accurate measure of how well an applicant will handle the likes of a Credit Card or Loan account. They are totally different types of account, with different expectations, operating styles, and obligations on the customer.

Any prime lender worth it's salt won't forward someone a line of credit on a low APR card just because they can pay a gas bill on time. That's preposterous. They will want to see how the customer has behaved on an account more similar to the one they've applied for.

Nor will a creditor who is looking after their money and investments going to give an applicant a large low APR loan on the merit of them having been able to pay an el-cheapo mobile phone contract on time for a few years. To suggest they would is ridiculous.

Perhaps YOUR score doesn't account for this fact, but the scoring system used by many lenders DOES. Yet another inaccuracy in your "SCORE".

EDIT: Granted, there are loan companies out there that WILL give people loans and credit cards who haven't held a loan or credit card account in the past, but they won't lend as much, and they will charge more interest. Having a mobile phone and british gas account on your credit report has nowhere near as much benefit on someone's creditworthiness as them having held and responsibly used two credit cards for a while.

Now let's talk about who's providing mis-information, shall we?