can lenders see your credit score/rating

missminx007

My DH is going to be applying for a mortgage in the next few months and has been working to improve his credit rating. However, it has recently gone down due to a debt dropping off there according to experian. They then went on to say that lenders dont actually see your credit score, they just see the details of who you owe what to and if you are good at paying. I dont really believe this, is it true does anyone know?

jwil

Each lender will have their own criteria, so the credit score from experian/equifax are a waste of time really.

Svenena

missminx007 wrote: »

They then went on to say that lenders dont actually see your credit score, they just see the details of who you owe what to and if you are good at paying. I dont really believe this, is it true does anyone know?

This is true. The score they charge you for is just an additional way for them to make money (ie a waste of your money). Lenders are just given the information from the report, and use their own criteria to come to a decision.

missminx007

Svenena wrote: »

This is true. The score they charge you for is just an additional way for them to make money (ie a waste of your money). Lenders are just given the information from the report, and use their own criteria to come to a decision.

Really, thats interesting. I found it a bit hard to believe to begin with. So as it has dropped off and all his other credit agreements have been marked as satisfied and he is up to date with paying his credit card off then it shouldnt have a detrimental effect on his getting a mortgage. Is that right? I dont know if he should wait for it to go back up or if it will make no difference.
Thanks for the replies both

Wh05apk

Please do not waste your money paying for a "credit score" it is worthless, all it will do is worry you whether your "950" or whatever is good enough, all lenders use different criteria, a score of "950" may be good enough for Abbey but not for Halifax.

The key things are that:
1/ you are on the VR
2/ There is some credit showing, so you can proove how you manage it
3/ Any credit showing is never late or missed

Apart from that do not get drawn into trying to improve your rating, it takes so long to do anyway.

missminx007

Wh05apk wrote: »

Please do not waste your money paying for a "credit score" it is worthless, all it will do is worry you whether your "950" or whatever is good enough, all lenders use different criteria, a score of "950" may be good enough for Abbey but not for Halifax.

The key things are that:
1/ you are on the VR
2/ There is some credit showing, so you can proove how you manage it
3/ Any credit showing is never late or missed

Apart from that do not get drawn into trying to improve your rating, it takes so long to do anyway.

Thanks for your reply, it has cheered me up lots!! Hopefully then DH should be able to go ahead with his plans for a mortgage. Isn't it a big con!!!

Peelerfart

missminx007 wrote: »

Isn't it a big con!!!

Well there is a chap who posts on the loans board, from Experian,and no doubt he would try and justify the company position.

Personally - Yup just a bit of a rip

Good Luck

PF

GMS

Each credit score is relevant to the institution producing it.

Until Experian and Equifax start offering mortgages their credit scores are irrelevant.

Stick to statutiry £2 reports and check all data is correct, Do not pay for scores.