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

BugsyBrowne

Paul_Herring wrote: »

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.

Paul your not getting it neither the point is not about salary or other things it takes in as its obvious salary is a key player in credit scoring which we know credit expert don't use but the point I am trying to make is if someone knows they have a good credit rating why do Experian also think they've got a good rating and not a poor one.

Paul_Herring

droiderm wrote: »

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?

No-one knows. Whenever anyone pesters/queries whoever's behind the Experian company representative username at the time[1] on this point, they are ignored.

That said, I'm sure that whatever algorithm they use will still leave the company open to the confusion that abounds today in that whatever number comes out will still not have any relevance to someone's success, or otherwise, at applying for credit.

[1] Since the account's been open since 2004, I'm guessing there's been more than one person.

droiderm

Paul_Herring wrote: »

No-one knows. Whenever anyone pesters/queries whoever's behind the Experian company representative username at the time[1] on this point, they are ignored.

That said, I'm sure that whatever algorithm they use will still leave the company open to the confusion that abounds today in that whatever number comes out will still not have any relevance to someone's success, or otherwise, at applying for credit.

[1] Since the account's been open since 2004, I'm guessing there's been more than one person.

I don't need to understand how they do it. I would just like to understand if it's consistent, and takes into account all the information. If it does it has some use. But they still need to describe what it's useful for (not much) and what it isn't.

If it isn't consistent and take all information into account, then it's an absolute waste of time.

Paul_Herring

BugsyBrowne wrote: »

... but the point I am trying to make is if someone knows they have a good credit rating why do Experian also think they've got a good rating and not a poor one.

Because the intersection[1] of "what someone knows" and "Experian also think" is large and the difference[2] is small.

i.e. they're agreeing on most of the facts they're both considering.

The fact that there lots of other things[3] that neither consider, but the companies that do provide credit do, seems to matter little, and is what most of the posts against Experian are trying to point out.

[1] [2] [3]

Paul_Herring

droiderm wrote: »

If it isn't consistent and take all information into account, then it's an absolute waste of time.

I'm not certain about consistency, but as shown above, they certainly don't take all the information they know about into account, and they certainly don't take all the information creditors take into account either.

JimmyTheWig

droiderm wrote: »

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

You know there is good reason for your score to be way below 999. So what value is there in Experian _telling you_ that your score is way below 999?
It's no more use to you than it was to the OP who knew he had a good credit rating and was shown a good score.

BugsyBrowne wrote: »

the point I am trying to make is if someone knows they have a good credit rating why do Experian also think they've got a good rating and not a poor one.

Even a stopped clock is right twice a day...

sfax

There is a lot of information in some credit files and given all of this information and added to the information that you supply on an application for credit, you often get an answer immediately. This answer is because the lender has applied an algorithm on the information provided. If you can produce an algorithm that is similar to that used by some lenders, this algorithm has value. If you tell people what the algorithm is, they can just apply it themselves and it has no value (other the time saved in not having to compile and process the inputs for themselves). If it has no perceived value, you wouldn’t be able to sell it for £6 so Experian will never tell you what the algorithm is.

People dismiss Experian’s credit score because it makes mistakes and produces incorrect scores sometimes, and guess what? Those are the scores you hear about on forums. That’s the nature of forums. People are more likely to complain than praise. But this only means the score doesn’t work in some cases. It doesn’t mean it’s worthless. Worth is subjective. It’s like getting a bus once and it breaking down and then dismissing bus travel as worthless because it never gets you to your destination.

For me, the Experian/Equifax credit score has value as part of a set of tools that I use to get a better picture of whether it’s a good idea to apply for new cards and whether I’ll get accepted immediately. The credit report itself has much more value but the credit score also has some value in my opinion. £6 to aid a decision that could cost £100s in interest payments if you apply for a card or loan at the wrong time and then have to wait 6 months before making a new application is a no brainer.

So call it worthless if you like but don’t complain when people disagree with your opinion because the value of your opinion is also subjective

droiderm

Paul_Herring wrote: »

I'm not certain about consistency, but as shown above, they certainly don't take all the information they know about into account, and they certainly don't take all the information creditors take into account either.

That seems only to be linked people, which is understandable.

Of course they may use a subset of data. The data each lender uses will be specific to them, i.e. how many pets you have.

The value for me is knowing the limitations, the first linked you posted above is news to me. I don't have anyone linked so it's not an issue to me.

I have said previously what the value is to me, and I think that still stands. I am not defending any of the agencies, but I don't think they can do much different without knowing the algorithms of each lender which I guess are secret.

"They give you what they give you". However one thing I have a problem with is the recommended products. They can't possibly know with any certainty. Now, that's wrong and could cause people issues.

droiderm

JimmyTheWig wrote: »

You know there is good reason for your score to be way below 999. So what value is there in Experian _telling you_ that your score is way below 999?

As I explained earlier it's for comparison purposes.
Compare last year with this, etc etc.

Liken it to being on a diet, knowing your eating well, but you just have to get on those scales....

JimmyTheWig

droiderm wrote: »

As I explained earlier it's for comparison purposes.
Compare last year with this, etc etc.

Liken it to being on a diet, knowing your eating well, but you just have to get on those scales....

Fair enough. I can see the point in that.
Personally not something that I would pay for, but I can see why some people would want to.