rRisk Assessment Number and Letter

mad4credit

Hi,

Please explain to me how banks calculate Risk Assessment ? Mine is 1C
with the Halifax. What is the number range and what does it indicate?
Similarly, What is the letter range and what does it mean?

Cheers

MoneySaverLog

If it's the same as Lloyds TSB then I'd have a educated guess at the following....

1,2,3,4,5,6,7,8,9,98,99 CPD - 1 being the best internal risk score, CPD meaning they wont even consider you. 98,99 are Basic Bank Accounts I believe.

A-G - Determines the loan rate A being the best.

Each product has it's own score, and cash limit, apparently.

mad4credit

mnn, very interesting. Would someone happen to know where most people
would come on this scale? ie, average

MoneySaverLog

No idea, but the score will vary every month around the 20th. As I understand it based on how you run your accounts with them.

No rhyme or reason for the fluctuations in score though.

mad4credit

[QUOTE

Each product has it's own score, and cash limit, apparently.[/QUOTE]

What products do you mean? Please give example?

MoneySaverLog

mad4credit wrote: »

What products do you mean? Please give example?

Everything you can apply for, so an additional current account, what level of added value account you're eligible for, loan, overdraft, credit card etc..

I understand mortgages are done separately but not sure on that one.

mad4credit

MoneySaverLog wrote: »

If it's the same as Lloyds TSB then I'd have a educated guess at the following....

1,2,3,4,5,6,7,8,9,98,99 CPD - 1 being the best internal risk score, CPD meaning they wont even consider you. 98,99 are Basic Bank Accounts I believe.

A-G - Determines the loan rate A being the best.


So I am a very low risk apparently, but should expect to be offered a higher APR unfortunately.

What does CPD mean?

MoneySaverLog

CPD is Credit Policy Decline. Basically it means they will just auto reject any application you make for that particular product where the CPD has been added, they won't even review it.

I would say that A would get the best APR for a loan and G the worst.

In addition to any risk score they also take a feed from the Credit Reference Agencies around the 20th of the month and it will override any internal score if anything negative is found there.

mad4credit

Thank you very much MoneySaverLog, It is all very interesting and useful. I so appreciate your knowledge, Cheers :beer: