Vast Difference in Credit Scores

CLAPTON

what do you credit reports actual say


what credit is currently being shown
e.g. credit cards ..do you pay in full or anly the min
do you use your OD
what loans are shown
are you on the electoral roll

whats you total level of debt
whats your salary

Frankel

CLAPTON wrote: »

what do you credit reports actual say


what credit is currently being shown
e.g. credit cards ..do you pay in full or anly the min
do you use your OD
what loans are shown
are you on the electoral roll

whats you total level of debt
whats your salary

Hi Clapton

what credit is currently being shown

Barclays Loan £350 Remaining - This is now actually paid off
MBNA C/C - £990 (3K Limit) - I pay about £250 a month
Natwest C/C - £1500 (3.6K Limit) - I pay about £150 a month
Barclays C/C - £0 (£260 Limit)
Barclays Platinum C/C - £0 (£1500 Limit)


do you use your OD

I use 1 out of 2 but never stay in it for more then 10 days

are you on the electoral roll

Yes

whats you total level of debt

About £2500

whats your salary

24K

Thanks

Trajal

Credit scores as sold by these companies are really not very worthwhile in themselves.

The reason for that is simply that each lender will have its own scorecard that takes into account all the information on your credit file and calculates whether or not you are an attractive customer for them or a risk etc.

The agencies simply supply the data and let these lenders make their own decision.

The score they are showing you is basically their best 'guess' based on whatever your credit file is showing. It's sometimes a useful indication and can be helpful in seeing if you are doing the right things etc, but other than that there is little point in it.

The really useful parts of the cra data is in the actual recorded information - do you have any defaults, do you have any late payments, any arrangements to pay, what is your income to credit ratio, how much credit do you have total and what is the ratio of available credit to used credit.

All of these factors, and others such as age, postcode, electoral status, ccj's etc, will be analyzed and an individual score is then generated internally by the lender to whom you have applied.

These scorecards are kept completely confidential unfortunately. Check the information which is being stored is correct, and check for any unknown nasties on your file, make decent but not too much use of available credit and you will be a more attractive customer to the majority of lenders.

Also don't move around too often and don't do too many searches (more than 3 in any six month period often has an indication to a lender that you may be 'desperate' although there are some exceptions to this such as sub prime credit cards like cap1 and vanquis).

Credit worthiness is an art not a science, no one has all the answers but I hope that some of the above is useful to you. Good luck

Apples2

They also consider your exposure to debt.

Instead of adding up your current balances, add up you current limits.
fromthe above you already have £8k exposure.
There is nothing to stop you taking this loan and using all that empty credit limits, there is nothing they can do to prevent that so they consider it when working out the risk.

With £8k exposure now, another £5k takes you over the magical & mystical 50% Salary figure of debt.