Mortgage - Existing Dept

ValHaller

Thrugelmir wrote: »

... Though in principle a useful tool for those that struggle to manage their personal financial affairs properly.

Unless Experian have revealed their algorithm, it is worse than useless for those who struggle. Not only do they pay for this so-called 'credit score', you sometimes see things on DFW like 'I did <X> and my credit score went down' where <X> is a financially prudent act. The whole issue of whether having a credit card and whether to clear the balance each month is muddied by Experian.

Thrugelmir

ValHaller wrote: »

Unless Experian have revealed their algorithm,

An algorithm is merely a computer programme.

On top of that all the variables are set. Permutations are therefore like winning the pools. Millions of them.

droiderm

Thrugelmir wrote: »

My mistake. Left PC and came back.

With regards to credit cards close cards you no longer have any use of. Once cleared. As this will demonstrate good intention and reduce amount of available credit.

Obviously a good deposit will aid your cause. If you are FTB's look at the various savings schemes available. Such as Nationwides Save to Buy for example. As regular saving is a good way of improving your credit score.

Good thread guys. Very interesting .
But saving can only increase your score to the lender you are saving with ?

Thrugelmir

droiderm wrote: »

Good thread guys. Very interesting .
But saving can only increase your score to the lender you are saving with ?

There's no way of scoring "saving". Other than the old fashioned traditional method. That by saving with a lender over an extended period say 1 to 2 years. Demonstrates an ability of the borrower to the lender to save regularly. That the borrower manages their money well.

This was how the building societies worked (prior to demutualisation) as both enabled them to vet borrowers along with providing funding for mortgages.

ValHaller

Thrugelmir wrote: »

An algorithm is merely a computer programme.

No, an algorithm is NOT a computer programme. An algorithm is a procedure for calculating something. Programmes written in different languages can use identical algorithms.

Perhaps I would better have expressed it as the rules for Experian calculating their so-called 'credit score' - because the algorithm strictly does not include the weighting factors - these are just general data as distinct from specific data for the subject of the so-called 'credit score'.

droiderm

It's fair to say algorithms in this context are normally implemented as a computer program.

Thrugelmir

ValHaller wrote: »

No, an algorithm is NOT a computer programme. An algorithm is a procedure for calculating something. Programmes written in different languages can use identical algorithms.

Perhaps I would better have expressed it as the rules for Experian calculating their so-called 'credit score' - because the algorithm strictly does not include the weighting factors - these are just general data as distinct from specific data for the subject of the so-called 'credit score'.

As this is the mortgage and endowment forum. Simplicity seemed best. In the evening I enjoy a bottle of ale from a local brewery as well.

In mathematics and computer science, an algorithm is a step-by-step procedure for calculations. Algorithms are used for calculation, data processing, and automated reasoning.

ValHaller

droiderm wrote: »

Good thread guys. Very interesting .
But saving can only increase your score to the lender you are saving with ?

You would hope so. This is probably a further reason why the Experian so-called credit score is not entirely helpful. It cannot reflect savings across the range of savings providers - but building societies used to give preference to those they knew who saved with them. Even 4 years ago, being savers with a particular BS and known to the branch manager seemed to get us some very prompt attention when we wanted a mortgage. And I cannot imagine that any lender would prefer Credit Referencing Agency information while totally ignoring their own information on a customer - including savings behaviour.