Experian credit score .... how accurate is it?

Cookiee

Hi lovely peeps

I have just signed up for the 30 day free credit report from experian.

It all looks fine, payments all in green and satisfactory however I also got a credit score and it said my rating was 996, which I deem is excellent.:T

Now I just asked my bank for a £50 overdraft as I might need to use it a day before payday and I was turned down! I bank with Lloyds.

So can anyone please tell me if I should rely on the credit score of experian or lloyds credit check?

Cheers me dears x:A

MrsTinks

Experians credit score is only an "indicator" - it's no guarantee of anything!
Have you asked Lloyds why they declined you? That would seem a good starting point... I know most banks won't change your OD in the first 6 months so that could possibly be a reason? Or there could be an information blip on their systems - best place to start is ask them...

bottleofred

Hi Cookie,

I think you've pretty much answered your own question. The credit scoring system is relied on far too much (in my opinion), as lenders have their own criteria and if you meet it after making an application for credit, then it is accepted. The best thing to do is ensure you are on the electoral role, keep all payments up to date, don't use all of your available credit (if you've a credit limit of £1000 on a card and have used £800, then you have used 80% of your credit) and don't make too many credit applications within 1 year (no more than 3 in 6 months).

chanz4

Ask them what your internal rating is, you may have a CPD marker

Emmala

A few months ago we went to our bank, HSBC, to see about a mortgage....basically, the computer said 'no' and she suggested it was to do with our credit score and said we should check it out. So we both signed up for the 30 day trial....and both had scores of 999!!! We checked through everything, old addresses, old cards.....all looked good.

The only other thing I have done since the trial is follow the advice of one of their advisers who told me to reduce the limit of available credit I have. While I don't have a credit card, I did have an account with Very (bought DD's xmas present last year, it was the only place which had it that I could find, and I had to open an account to buy), also I have reduced my limit with Next from £9000 to £1000 - I'd never even thought about the limit on that one.......might buy the kids some bits, or order a pair of curtains, but always pay off each time. I figured a limit of £1000 would allow us to get a sofa, say, or some furniture, so I didn't want to reduce it completely.

That's all I can think of I'm afraid. It's frustrating, I know.

Experian_company_representative

Interesting. My understanding is that the Experian Credit Score rates risk of defaulting based on past behaviour, which is important but, as others have said, is only part of the equation. It's clear, for example, that many lenders are also looking very closely at affordability by analysing any internal behavioural data available to them. The lender should be able to explain the main reason for their decision and industry guidelines do require this.

James Jones

nrsql

Companies have profiles that they are aiming for. Could be that what goes to giving you a high score with experian puts you outside their current criteria.
Basically the experian credit score is fairly worthless (apart from making them money).

It sounds like you could be close to the limit of income and outgoings. Also high available credit could indicate a risk that you could ramp it up, equally low available credit could mean that you are already near the max vailable to you.

Bit surprised though that you didn't get a £50 overdraft - did you say it was temporary, for a couple of days? Could just be that you were talking to someone who wasn't able to make decisions.

CompBunny

Personally, I think its a load of old tosh. I haven't had a job for 3 years and am on incapacity benefit and my score is 985. Silly much?