Is Experian's score really a random number or worthless?

BugsyBrowne

Just recently signed up again for credit expert where before just got the stat report but read posts about how much the layout as changed since last year and I know I have a decent credit rating so wanted to see what Experian would rate me.

Now I know they don't take income in etc but how can it be a random number when I know I have a decent credit rating as also do Experian who rated me excellent.

Remember read what I've said before jumping in as if its a random number why does it match up to what I thought it should.

Now if their score wasn't correct why didn't they give me a 300 poor credit score.


I also haven't had a missed/late payment for 15 years.

I have 7 settled credit card agreements.
I have 1 settled 10k loan aggrement.

I have 1 credit card 5.5k limit with £167 balance.
I have 2 overdrafts total 4k never been used.

Hopefully someone can see what I am trying to get at.

sharpy2010

Well Experian give high scores to almost everyone who doesn't have any defaults/ccj's, regardless of whether they are even in work or not. Surely this means that they are going to give high scores to some people who actually warrant high scores.

They could have merely fluked it.

JimmyTheWig

BugsyBrowne wrote: »

how can it be a random number when I know I have a decent credit rating as also do Experian who rated me excellent.

Maybe not a random number, but not necessarily a true judge of what another company may think of your credit report.

In your case you knew you had a decent rating and they rated you as excellent. I.e. they told you what you already knew - so was worthless!

InsideInsurance

Random number or worthless? Sounds like you think a random number would be useful?

The number isn't random but isn't the number that lenders use. It could be in the same ball park for the credit history element but then lenders will also factor in other considerations like income

BugsyBrowne

InsideInsurance wrote: »

Random number or worthless? Sounds like you think a random number would be useful?

The number isn't random but isn't the number that lenders use. It could be in the same ball park for the credit history element but then lenders will also factor in other considerations like income

You've read it wrong I see. I know lenders don't see the score as its irrelevant to a lender but my Point is many posters and including myself said its not a true reflection of your credit rating well it clearly is spot on with mine.

You must see where I am trying to come from.

YorkshireBoy

BugsyBrowne wrote: »

I know lenders don't see the score as its irrelevant to a lender...

Some lenders do, or at least say they "may", use a CRA generated credit score. For example, from M&S's "guide to credit scoring"...

Sometimes scores are calculated by a Credit Reference Agency and we may use these in our assessment.

http://money.marksandspencer.com/pdf/CreditScoring.pdf

JimmyTheWig

BugsyBrowne wrote: »

You've read it wrong I see. I know lenders don't see the score as its irrelevant to a lender but my Point is many posters and including myself said its not a true reflection of your credit rating well it clearly is spot on with mine.

You must see where I am trying to come from.

Maybe it's akin to attractiveness.

You can ask someone in the pub if they think your mate is attractive. Whether they say "yes" or "no" doesn't necessarily mean that the next person you ask will give the same answer. They may have different opinions on what makes someone attractive.
Unless your mate wants to go out with the person that you asked, the answer they gave is somewhat irrelevant.
Only somewhat irrelevant, however, as there as some traits that most people agree on in terms of judging someone's attractiveness (or lack of). Spinach in their teeth, for example, is likely to get them marked down by whoever you ask.
So you can get a vague indication of your mate's attractiveness by asking someone. Probably no more accurate than you could have given yourself, however, and so not really worth paying for.

Likewise, you aren't trying to get a loan from Experian, so what they think isn't the most important thing. Missed payments, etc, will get you marked down by everyone (like spinach in your teeth).

sfax

BugsyBrowne wrote: »

You've read it wrong I see. I know lenders don't see the score as its irrelevant to a lender but my Point is many posters and including myself said its not a true reflection of your credit rating well it clearly is spot on with mine.

You must see where I am trying to come from.

It's always been an accurate reflection for me (through both good periods and bad periods) and I get an Equifax or Experian score every now and again and always get one for reassurance before applying for a new credit card. I know it's not set in stone but I like the red-amber-green stuff that comes with it to highlight potential areas for concern. Used in conjunction with a proper examination of your credit report, it's a useful tool IMO

Daddy-Spendless

BugsyBrowne wrote: »

You've read it wrong I see. I know lenders don't see the score as its irrelevant to a lender but my Point is many posters and including myself said its not a true reflection of your credit rating well it clearly is spot on with mine.

You must see where I am trying to come from.

maybe it would be better to say its not a true reflection of a persons ability to obtain credit.

InsideInsurance

YorkshireBoy wrote: »

Some lenders do, or at least say they "may", use a CRA generated credit score. For example, from M&S's "guide to credit scoring"...

I am sure others may correct me if things have changed but donkeys years ago there was certainly the option for lenders to give the CRA an algorithm and they would run that against the credit history they held for the potential customer.

If this still is possible then the above statement could be true without being incompatible with the normal assertion. The CRA is the one that is actually doing the generation but it is a different scoring system to the one the CRA sells to the public as it has been weighted by the lender to their personal preferences.

spadoosh

JimmyTheWig wrote: »

Maybe it's akin to attractiveness.

You can ask someone in the pub if they think your mate is attractive. Whether they say "yes" or "no" doesn't necessarily mean that the next person you ask will give the same answer. They may have different opinions on what makes someone attractive.
Unless your mate wants to go out with the person that you asked, the answer they gave is somewhat irrelevant.
Only somewhat irrelevant, however, as there as some traits that most people agree on in terms of judging someone's attractiveness (or lack of). Spinach in their teeth, for example, is likely to get them marked down by whoever you ask.
So you can get a vague indication of your mate's attractiveness by asking someone. Probably no more accurate than you could have given yourself, however, and so not really worth paying for.

Likewise, you aren't trying to get a loan from Experian, so what they think isn't the most important thing. Missed payments, etc, will get you marked down by everyone (like spinach in your teeth).

What a fantastic analogy!!:T