Credit scores

SeanG79

There are 2 flaws/issues with CRA's scores provided, firstly they lend no money themselves and each lender has its own "score card" in line with its risk appetite. Secondly, Experian's score for example only takes into account the last 12 months data, where lenders take into account all 6 years of data stored at whichever CRA(s) they purchase data from.

The_Boss

The big issue with Friday was that it was a big love-in with Experian. Instead of challenging Experian over the misleading scores, extortionate cost and spending time explaining the other factors that were involved, it basically gave them lots of credibility.

When people are rejected for credit, there is usually a message from the lender about using data from Experian and to check your report. When people do so and see an excellent score it further adds to the confusion.

If Experian sold these as part of a composite score and not as a 'credit score' it would be far more transparent. But they don't as their misleading use of words allows them to make more money.