Three main Credit Reference Agencies

Stigy

Hi all!

Apologies if this is in the wrong place! I have held an Experian account for about 6-months and have been impressed. My initial Credit Score was at rock bottom (Very Poor). Over the past 6-months I have managed to raise it towards the top (Good - Scoring 943/999). Now I've heard that obviously there's two other main agencies - Equifax and CallCredit, and that it pays to sign up to all three to get a clear picture of what all Creditors look at as different companies use different agaencies, but typically one of the main three.

So today I bit the bullet and signed up to the other two. No CallCredit are still verifying me apparently, but Equifax accepted me instantly. Now here lies my problem. Equifax seemed more confusing than Ezperian from the word go, and it appears that if I want to monitor my score it'll cost me £5.95 a pop, rather than for the standard subscription fee, such as Experian do? (maybe that's why they're cheaper?) Anyway, Equifax have my score at rock bottom (230 and very poor ). Now I wouldn't care so much, but all the data held is identical to that of Experian!

Just seems extremely inconsistent to me. To be honest, I was shocked that with two defaults listed, Experian would list me as anything other than very poor, but hey ho!

Can anybody offer any advice? How do these credit reports actually work, and how much do lenders use them to form their decisions?

I'm trying to get my self credit worthy again, but see this as a bit of a blow to be honest. I've cleared the best part of £6,000 in debt and have taken out a new mobile phone contract, which I was surprised I'd be accepted for anyway (seems to have worked, although only just showing up on my Experian report....or will do in the long run at least!), and have also noticed a new current account is displayed too.

Thanks!

erimus1

Hi there Stigy. I have had the same situation with the Credi Expert scores over the years - for some reason, they don't seem to count defaults in the way they would a CCJ, so if the defaults are old, the score goes up quite a bit.

Having said that, and as most people will tell you in here, they scores that the CRA's have are useless, or at best, a very loose guide. The score that a perspective lender would have for you would be made up of, not only the data within your report, but also your application - this would give a far more detailed score, but varies depending in the lender's algorithms.

Stigy

Thanks for the reply!

So would you recommend not using/monitoring any given (or all three) CRAs?

faceuptoit

Don't bother doing anything with these agencies other than using Exp/Eq to see your credit report - which is free for the first month or £2 per pop. This shows you all of the information they hold about you and you can then use this information to dispute anything that is incorrect. I did this with Equifax when I got rejected for a credit card, disputed a late payment status and it has been removed.
The credit "scores" produced by these companies are not used by lenders. Lenders will simply look at all of the information they have from the credit agencies and your application, work out whether you fit within their risk rating and then decide (this is often, but not always, an automatic computer yes or no). I would cancel the accounts immediately and instead use the money to pay off your debts.

faceuptoit

Oh and there is a free one that people always link to on here, but when I tried to use it it said it doesn't provide services to people in my postcode. Weird.

erimus1

Stigy wrote: »

Thanks for the reply!

So would you recommend not using/monitoring any given (or all three) CRAs?

First thing to do is check if the defaults are on all three reports. If they are not then I would maybe sign up to the one that has the best information i.e the one with no defaults or at least, less. Then use thus to your advantage f ever applying for credit, try and use lenders that search you 'good file'

jobdone1

i use noddle as my check as its free this is to make sure piece of mind that i am not having credit applied for in my name its great keeps me on top of things i believe they are call credit its free all the time just have to sign up and enter a credit or debit card to verify who you are i can assure you they don't take money also i have raised dispute's and they always write to confirm the problem on file and resolve it as well

Stigy

Thanks for all the advice. Strangely in my case, Experian list one less default...

Experian_company_representative

jobdone1 wrote: »

i use noddle as my check as its free this is to make sure piece of mind that i am not having credit applied for in my name its great keeps me on top of things i believe they are call credit its free all the time just have to sign up and enter a credit or debit card to verify who you are i can assure you they don't take money also i have raised dispute's and they always write to confirm the problem on file and resolve it as well

Bear in mind that credit checks made through Experian only show up on Experian reports.

James Jones

poppett

I have just signed up to Noddle after reading about it on the home page of MSE. I am a bit confused with the credit report search history section. On the 3/6/2012 I have five separate entries from insurance companies, does this mean they have searched my credit report and if so I certainly haven't requested any insurance etc. Sorry if I have this all wrong, I'm new to this. can someone help though??