Can we have a sticky about why the Experian/Equifax scores dont guarantee acceptance?

matttye

sharpy2010 wrote: »

So what IS it scoring?

As I said:

matttye wrote: »

I think of it as a way of scoring the information contained within my credit report, rather than my actual creditworthiness.

sharpy2010

I think if I was paying to get a score with regards my credit rating, I'd prefer it to be accurate - so I was getting what I paid for.

It's easy enough to dream up a random number to rate the information in your credit report, which may or may not have anything at all to do with your actual credit worthiness - but why would you pay for that?

matttye

sharpy2010 wrote: »

I think if I was paying to get a score with regards my credit rating, I'd prefer it to be accurate - so I was getting what I paid for.

It's easy enough to dream up a random number to rate the information in your credit report, which may or may not have anything at all to do with your actual credit worthiness - but why would you pay for that?

I think it's intended to be a simple way of showing the state of your credit file. It's easier to interpret a numeric number than to go sifting through all of the information in your file.

With that said, I do agree that in some cases it needs to be more accurate. Some discharged bankrupts have scores in the 900s on Experian, which is 'Excellent,' likewise with people with limited credit histories.

The_Boss

sharpy2010 wrote: »

At best then, the score is an extremely inaccurate guide.

However, my personal belief is that it is so inaccurate as to be completely worthless, and thus not worth the money.

That article is hidden away in a questions section where the average website user would never look. The post above, as with everything Experian, is misleadng in that it makes it appear that the article is out in the open and immediately visible.

I've challenged Experian over the wording they use on the credit score sign up page but never get a reply, proving they are happy to mislead people to get their £15.

Thrugelmir

matttye wrote: »

If someone had a crap credit history then won the Euro millions, every lender in the country would want them as a customer

Would they?

More than a few have burnt through all their lottery winnings......

matttye

Thrugelmir wrote: »

Would they?

More than a few have burnt through all their lottery winnings......

They would still want those lottery winnings in their bank until they're burnt through

Thrugelmir

matttye wrote: »

They would still want those lottery winnings in their bank until they're burnt through

Doesn't make you a better risk though.

Poor credit history is just that. A good indication as to how an individual is likely to behave in the future.

The_Boss

Still no sticky

djmobi

This is what it says under the score you get on Equifax's version of credit expert.

You have a score of 467.Your score is highly predictive that you would be a strong candidate for credit. You are well above the average for UK borrowers. Most credit grantors would consider this score excellent. While many factors other than your score influence the decision to grant credit, you will probably not be turned down for loans based on your score alone. Many credit grantors may also offer you preferential terms such as higher credit limits or lower rates. Review the Risk Signals below to identify areas that may be negatively impacting your score.

Although it does state that other factors influence the decision of the lender, the first couple of lines are in mu humble opinion, quite bold and misleading statements.

I have learnt over the last few days just how pointless these scores are but I think myself and anyone else without the knowledge on this forum could be justified in thinking that when the actual credit reference agency your lender is using gives you a score like this with the accompanying statement, you will likely be accepted for credit.
Especially when like me there are no other factors outside of your credit report that should cause any concern.

I have cancelled both my Equifax and Experian accounts that have cost me £32 a month for the last 3 years. The money I have spent on these services would pay off my largest credit card in full

tinkerbell28

I don't know why MSE won't condone a sticky. I really don't. The amount of people who have "excellent" scores. Then arrive here quite upset as they can't get the loan they want, or a prime bit of plastic advertised by MSE. Like Halifax Clarity or whatever.

It's all a total nonsense. People take it as a personal insult, but it's definitely misleading.


You've only got to see the people who come here miffed about their declines and then go on to elaborate a bit more.....some with good-excellent scores. Have late payments, defaults, ccJ's and bankruptcies on file.