Credit score basically ruined at 19.

adindas

TBH I fail to understand this stupid Credit Scoring System Work

- More credit search damage credit score.
This stupid system fail to detect that for some people with excellence financial stability and records there might be a genuine reason for more Credit searches. For instance to get a better deal of the best deal they could find. As Any lender will do credit search, the number of credit search will pile up.

- Move address.
It will again damage your credit Score. Some people move because of the job requirement, get a better income by changing employers, cities. Again this stupid system fail to recognize this and make no difference with the person who deliberately changing address to make it more difficult to trace them.

- They only believe what the Bank/lenders have reported, do not try to to double check it to the person whose reputation have been damage. When it is proven wrong they do not provide compensation for the resources time money that have been put to change that records.

- You have dispute with say mobile phone companies about the charge, minutes, etc. You might still be able to negotiate with mobile companies to reduce the charge but at the end they will have a final say as otherwise it will go to your credit histories.....

- During the credit crunch the lenders use CRA as one of criteria to make decision yet lead to the wrong decision as some properties now in repossession....

- They are expecting the people whose reputation have been damaged to fund their inaccurate and system.

Is it not that better this system does not exist .... ???

TzarJay wrote: »

Hi, I'm 19 and I have basically ruined my credit score. When I was 18 I had no idea about credit score's etc and started applying for credit cards I had no chance of getting due to my lack of credit history. For example American Express cards and Gold Mastercards simply because I wanted a credit card to have in my wallet, not that i needed one.

As of now I have 17 recent searches and a Experian score of 722, I'm so annoyed at myself, because i meet the guidelines for alot of cards now, but as soon as the lenders see that 17 they automatically decline me.

I have one credit card just now which is a Capital One Progress Mastercard which I pay off every month, and I dont have a history of bad dept and I've never missed a payment for anything.

But, for some reason my Cap1 card doesn't appear on my Experian credit report, like it doesnt exist. Which makes it even worse for me because it looks like I've never had credit.

Is there any advice to help me with my score, which is totally my fault, due to me trying to look cool when i was 18.

callum9999

adindas wrote: »

TBH I fail to understand this stupid Credit Scoring System Work

- More credit search damage credit score.
This stupid system fail to detect that for some people with excellence financial stability and records there might be a genuine reason for more Credit searches. For instance to get a better deal of the best deal they could find. As Any lender will do credit search, the number of credit search will pile up.

- Move address.
It will again damage your credit Score. Some people move because of the job requirement, get a better income by changing employers, cities. Again this stupid system fail to recognize this and make no difference with the person who deliberately changing address to make it more difficult to trace them.

- They only believe what the Bank/lenders have reported, do not try to to double check it to the person whose reputation have been damage. When it is proven wrong they do not provide compensation for the resources time money that have been put to change that records.

- You have dispute with say mobile phone companies about the charge, minutes, etc. You might still be able to negotiate with mobile companies to reduce the charge but at the end they will have a final say as otherwise it will go to your credit histories.....

- During the credit crunch the lenders use CRA as one of criteria to make decision yet lead to the wrong decision as some properties now in repossession....

- They are expecting the people whose reputation have been damaged to fund their inaccurate and system.

Is it not that better this system does not exist .... ???

It's not stupid, but it's not an exact science - how could it possibly be?

There could be a valid reason (though if you have "excellent financial stability" - why would you have so much difficulty getting accepted for cards you need a string of searches) but they hardly know that.

Some people do, some people don't. How would the system realistically recognise this?

Well the banks and lenders generally report accurately so why wouldn't they believe it?

Don't really understand this one. If you ran up the charges then you owe the money. If you didn't run up the charges then you'll get the money back.

That has nothing to do with CRA agencies - they just gave out more credit with the same information that they would currently give a smaller amount for.

The banks and CCs fund the system. If you want you can buy a copy of your credit report every now and again for £2 - hardly a huge source of income for them - then you can correct any errors for free by email.

No it's not better for this system not to exist - what exactly do you suggest replaces it? The credit card company popping round for a chat to evaluate you? Never gonna happen. It's far from perfect, but it's as close to it as you can practically get. And then if you get rejected, they have a system in place where you can appeal to them by providing information like "this was inaccurately reported" or "I've just moved house because of my job - here is a copy of my new pay slip" etc.

steve1980

Your "credit score" means absolutely nothing!!!!!

esuhl

steve1980 wrote: »

Your "credit score" means absolutely nothing!!!!!

But it does really, doesn't it? If credit reference agencies score you from 0 (not creditworthy) to 1000 (honest billionaire), then one might reasonably surmise that someone with a score of 900 is more likely to be accepted for a specific financial product than someone who scores 100.

It's like saying a CPU benchmark means nothing. My CPU might benchmark at 9500 using PCMark, even though the benchmark score is never used by any other application, doesn't directly measure processing speed, and doesn't accurately represent any real-world measurement. But if my CPU scores 9500 and my friends scores 8000, then I know that a task that makes extensive use of the CPU is likely to run faster on my machine.

IceColdRum

esuhl wrote: »

But it does really, doesn't it? If credit reference agencies score you from 0 (not creditworthy) to 1000 (honest billionaire), then one might reasonably surmise that someone with a score of 900 is more likely to be accepted for a specific financial product than someone who scores 100.

It's like saying a CPU benchmark means nothing. My CPU might benchmark at 9500 using PCMark, even though the benchmark score is never used by any other application, doesn't directly measure processing speed, and doesn't accurately represent any real-world measurement. But if my CPU scores 9500 and my friends scores 8000, then I know that a task that makes extensive use of the CPU is likely to run faster on my machine.

I think he means the Experian credit score thing it's a load of bull;)

also I though other people couldn't see credit searches?

Hazzinho

It's to give you an idea of what your credit is like in general and is easy money for CRA's who charge for scores. Lenders use their own criteria based on your credit history so scores do mean nothing. All you need to do is make sure the information is accurate and correct and hope you fit the lender criteria.

steve1980

Hazzinho wrote: »

It's to give you an idea of what your credit is like in general and is easy money for CRA's who charge for scores. Lenders use their own criteria based on your credit history so scores do mean nothing. All you need to do is make sure the information is accurate and correct and hope you fit the lender criteria.

What an answer!

esuhl

IceColdRum wrote: »

I think he means the Experian credit score thing it's a load of bull;)

Really? So someone who gets a very high Experian rating would be no more likely to obtain credit than someone with a very low score?! What do they do, just make up a figure? Surely it's like any benchmark that is intended to give you a rough guide.

Fruit_and_Nut_Case

esuhl wrote: »

Really? So someone who gets a very high Experian rating would be no more likely to obtain credit than someone with a very low score?! What do they do, just make up a figure? Surely it's like any benchmark that is intended to give you a rough guide.

Rough guide perhaps but the score is based in incomplete information. The CRAs don't know your salary (if any) or whether you are struggling on benefits, for example.

Katgrit

Very easy way of looking at this.

First of you need to remember there are two very different things : credit scores and credit reports. Credit scores are made up by the agencies, who charge you to find out this score. They base their score on the info recorded in your credit report.

Now you imagine the credit reference agency is a Mum, who is comparing suitable girlfriends for her 16 yr old son. The bank, or loan company, is the son. Take potential girlfriend A; she is always on time for dates, she is polite and kind, never swears and is well dressed. She goes to church twice on Sundays, got straight A's at GCSE and is off to University. She wants to become a lawyer and both her parents are GP's. She drives a sensible car (not too fast mind!) and is waiting until her wedding night to do the deed. She has great prospects and would make an excellent wife. The Mother scores her at 900.

Potential girlfriend B is the complete opposite. She lives in a scutty part of town and drinks even though she's under age. She drives a motorbike without insurance and doesn't even have a licence. Shes known for two timing previous boyfriends, will stand them up half the time and never has her phone switched on so people can track her down. She didn't even turn up for most of her GCSE's. She's a nice girl deep down thought, heart in the right place. Circumstances have lead to her being like she is. But lets face facts, she hasn't got good prospects. The boys Mother scores her 170.

Anyone in their right mind would pick Girl A wouldn't they?

Nope. Think again. The 16 yr old Boy isn't looking for a wife. He's not that responsible. He isn't looking for a faithful dependant person he can rely on, and isn't look to the future of society as a whole when he chooses his partners. He's out for himself, out for what he can get out of this. Quite simply he's out for someone who he knows can get him into clubs underage and who puts out behind the bikesheds.

Dont forget, this 16yr old boy is a loan company - he's out for what he can get out this relationship, NOT for the goodness of society.