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

spadoosh

If the credit scoring was remotely accurate you would not have sooooo many threads on here saying things like 'my credit score is 999 but ive been refused a loan'

As said earlier they are bound to get one roughly accurate. I dont understand why you think it means something and why you think it couldve been wrong when you havent missed a payment in 15 years.

There is probably some calculation involved, im sure, and its a number generated from what is accessible on your credit file however as with any system it can not judge the severity of any mispaymens etc. Eg a missed payment for a £5 phone bill is not as bad as missed payment for a £2000 mortgage!

It IS an indicative measure to give people a rough idea.

Its failings... My g/f had a default (from fraud) on her file, when we ordered a credit score she got 900+, that is misleading to say the least when the unsettled default was less than 2 years old. That misleading info cost us a few hundred quid after paying fees etc during a house purchase that fell through because of said default.

Unfortunately she thought she had a full report and said her rating was good, something i probably shouldve checked!

Paul_Herring

BugsyBrowne wrote: »

You mentioned once about why people get 999 is this by default so to speak.

That looks like you're asking me a question, but unsure. If it is, see the second link where I say (to the Experian guy I was replying to):

Paul_Herring wrote: »

For heaven's sake, you've been giving "999" to those without a job! Without savings! There's no way a main-stream lender, of any stripe, would lend a significant amount to such a person.

All anyone appears to have to do to get 999 is (simplistically) is be on the electoral roll, have some borrowing and have never been late with a payment in the past 6 years.

molerat

An interesting insight into the number from someone with a high number unable to get credit

https://forums.moneysavingexpert.com/discussion/comment/55947969#Comment_55947969

Experian Rep replied

If your sister has a poor credit record then that could be the issue. If there is no financial link you can actually request a financial disassociation online. You may need to do this with the other two CRAs too.

The credit score you can get with your Experian credit report is not allowed to factor in data about other people you are linked to.

And my comment on that statement

So data that can affect your ability to get credit cannot be included in the score. Confirmation from the horse's mouth that these scores are totally worthless

droiderm

I think it's only "worthless" as no one seems to know how and why it's built up. But, if you knew how it was built up then maybe you wouldn't need it.

My score is way below 999 , for good reason. So, I think it's a reasonable use (at least for me) for comparison purposes.

I do know though that it isn't much indication of your "credit worthiness". But that is subject to different criteria for those lenders.
So, I guess irrespective of which credit scoring company you use, I guess it's not hard and fast that your going to get credit anywhere.
One mans junk is another mans treasure.

But all said, I am using the score as a comparison from last month, 6 months etc

Paul_Herring

droiderm wrote: »

But, if you knew how it was built up then maybe you wouldn't need it.

This is the problem - the people buying these scores don't know how they're built up.

If they did, they wouldn't be buying them. Or wondering why the score was at odds with what the companies that actually provide credit seem to be rating them.

droiderm

Paul_Herring wrote: »

This is the problem - the people buying these scores don't know how they're built up.

If they did, they wouldn't be buying them. Or wondering why the score was at odds with what the companies that actually provide credit seem to be rating them.

For me , the value for me is taking a significant amount of information and generating a number from it. This gives me a "ball park" as somone else indicated. I will continue to buy one every quarter or so.

spadoosh

Ive said a million times, that number is worthless! Its the data behind the number that can help. This is why you should get a credit report and not a credit score!

Seriously, my ability at telling someone there credit worthyness is far greater than a credit score! And i only cost £6.08 an hour!

Paul_Herring

droiderm wrote: »

For me , the value for me is taking a significant amount of information and generating a number from it. This gives me a "ball park" as somone else indicated. I will continue to buy one every quarter or so.

Feel free to waste your money on an inaccurate number (they don't even include all the information they know about in it) - but at least you know the limitations of that number; you're in a minority. Most people attribute more meaning to that number than you do.

BugsyBrowne

spadoosh wrote: »

Ive said a million times, that number is worthless! Its the data behind the number that can help. This is why you should get a credit report and not a credit score!

Seriously, my ability at telling someone there credit worthyness is far greater than a credit score! And i only cost £6.08 an hour!

Think your getting a little mixed up with the point of the thread go and have a coffee.

droiderm

spadoosh wrote: »

Ive said a million times, that number is worthless! Its the data behind the number that can help. This is why you should get a credit report and not a credit score!

Seriously, my ability at telling someone there credit worthyness is far greater than a credit score! And i only cost £6.08 an hour!

I see your point. My assumption was that the number at least has some correlation to the data behind it. From a comparitive point of view, that's useful to me for now.

However, if you and Paul are saying that the number doesn't even look at all of the information then that's a different thing altogether.

So my question would be, why don't experian/equifax and the likes product an algorithm (which I suggest they already have) which produces at least a comparable measure subject to any changes in the file?

EDIT: I noticed they all have recommended products for your particular credit rating. Now if that worked (I know it doesn't) that would be something worth looking into. Why don't lenders give you the option a soft search (before applying) without recording anything on your file so you know if your very likely to be accepted before doing a full check when you apply? This would probably make equifax/experian/call credits "scores" completely useless.