Credit score do they actually mean anything?

scobby17_2

I have just been through a major exercise to improve my credit score.
I registered with Experian and Euifax and followed advice for 6 months.
Closed some accounts down, reduced credit limits on overdraft, etc

My rating has gone from a medium to good and just a couple of points off excellent.

Thought I would now be eligible to get a 0% balance transfer card.

used the sites links to match me to the best lender.. no 0%offers

Best APR 35.9%

Thought I would see if loan was available to shift high interest to lower interest. Only offer was secured loan at 19.4%.:eek:

Now I have to admit I do have a CCJ against me 4 years ago, which I am guessing must be going against me.

If this is the case then surely I am a medium risk, and should not have a good to excellent credit rating.

Is having a good credit score worth anything?
Have I just wasted 6 months effort?
Have I been conned by Equifax and Experian?

worried_jim

Completely useless and a consumer con. In 12 years of arranging finance from store card and consumer credit to bank loans I have never paid any attention to your credit score, it is in the top right hand corner on your credit file as I view and I don't even look at it.

What I would pay attention to is-
"Now I have to admit I do have a CCJ against me 4 years ago, which I am guessing must be going against me."

meer53

The only score that matters is the one looked at by the lenders, and you will never get to see that one.

Blackpool_Saver

meer53 wrote: »

The only score that matters is the one looked at by the lenders, and you will never get to see that one.

yes but surely that is improved by doing what the OP has done? I would really like to know about this too......

backinbusiness

CCJ will be the culprit, and will continue to affect you for another 2 years.

dealer_wins

IMO your credit score is a sign of how well you manage current and previous borrowing, and what amounts you have proved to be able (or not) to repay.

When companies decide whether or not to lend to you your credit report gives them a good idea whether you are responsible and make your payments on time.

The actual decision to lend money is based mainly on status ie. Income, assets, savings/investments, employment, residential status.

These days to get a competitive loan rate both your credit report and status need to be good to impeccable.

I would guess that payday lenders use your credit report more than checking your status, where as mainstream lenders would assess you on both.

Blackpool_Saver

worried_jim wrote: »

Completely useless and a consumer con. In 12 years of arranging finance from store card and consumer credit to bank loans I have never paid any attention to your credit score, it is in the top right hand corner on your credit file as I view and I don't even look at it.

What I would pay attention to is-
"Now I have to admit I do have a CCJ against me 4 years ago, which I am guessing must be going against me."

So what exactly do you look at please?

meer53

Blackpool_Saver wrote: »

yes but surely that is improved by doing what the OP has done? I would really like to know about this too......

Lending decisions are made using more information than just credit scores. Each lender has their own criteria, i use a CRA in my job, sometimes i will agree lending where the credit score is not good, depends on what else i can see or what the customer tells me. No idea what lenders with no access to this info do though, maybe someone else on the forum has experience of this ? If you think you have no issues with your credit score and are declined for loans/cards etc, then i suppose checking your credit file would be the first place to start but the OP says they have a CCJ which is definately going to affect them. They should carry on doing what they are doing, it will be worth it eventually. I would assume that the high interest products the customer would be offered are because of the CCJ.

Blackpool_Saver

Hmmm, thanks Meer, mine is good fortunately, but I was declined something recently and have never been declined before.....

BoGoF

On what basis do you say it's 'good' though?

KingElvis

That CCJ will hang round you neck like a millstone......shame but it's there to tell other potential lenders you're a high risk.