Help please... on an Experian credit report

Thrugelmir

Experian_company_representative wrote: »

From the score we've given you, which is only a guide but still indicative, it seems that your credit history is in pretty good shape.

James

Perhaps you would like to explain Experian's scoring system. Rather than passing the buck to the lenders. As so obviously out of line with lenders own criteria for profiling customers.

BartyBoy

Experian_company_representative wrote: »

If I were you I'd go back to the original loan provider and press them for the principle reason for saying no.

Thanks for your comment, James.

I have already been in touch with Post Office Finance Services asking them why they have rejected my application. Post Office FS did come back to me, but instead of explaining to me how they made the decision, they sent me a booklet called 'your credit decision explained' which confuses me even more.

Anyway, I asked Post Office FS once again about the main reason why I have not met their lending criteria, so I shall wait and see what they say about me.

Regarding the Experian credit scoring, I must say I feel mis-led here by the figure. Like I said before, I had 968 out of 999, I really thought I had a very good chance to get a loan successfully. But the reality is, I got reject by every single lender who I submitted an application to. I think the Experian credit score should reflect and include the truth of the credit status, such as the high number of active credit accounts, the high amount of unsecured credits, etc. So when I look at my score, I can tell straight away how much chance I have got to be accepted for a loan.

BartyBoy

Thrugelmir wrote: »

Perhaps you would like to explain Experian's scoring system.

And also, if the lenders do not take the Experian credit score into the account, what is the point to have these numbers? The only thing that I am concerned is whether or not I can get a loan successfully, but not how high or low my Experian credit score is, especially when it means absolutely nothing to me and to the lenders.

The_Boss

BartyBoy wrote: »

And also, if the lenders do not take the Experian credit score into the account, what is the point to have these numbers?

They are a nice cash cow for Experian, all based on an illusion of importance that they have created.

BartyBoy

Just for an update about all these issues I am having with applying for a loan. I received a letter from Post Office FS on a 'Northridge Finance' letterhead today explaining how they made the decision to my application. They wrote,

"I understand from your email that you received a score of 963 out of 999 from Experian, but as per the enclosed leaflet each lender applies its own policies and has different scoring system, so applications may be assessed differently by different lenders. This means that whilst you may have been unsuccessful with your Post Office application, it does not necessarily mean that your application would be unsuccessful with another lender."

Post Office FS refuses to discuss its scoring system, but from what they say on the letter, the Experian credit score (I guess it also applies to the Equifax and the Callcredit Check scores) is just a figure which really means and represents nothing.

I think, going back to my case, lenders should make it 100% clear of what type of applicants they are trying to sell a loan to, which I would probably call it 'loan application requirements'.

It's like, when Derbyshire Building Society is offering 5% APR loan (the best offer currently in the market), perhaps they should say something like their loan is designed and only offered to those who don't have a mortgage or credit card debts, or who must meet the minimum income level, etc. Then I know I should not be bothered to waste my time to apply a loan with Derbyshire Building Society in the first place.

I also think that lenders should take more responsibility while they are offering loans, cos as far as I know and from what I have heard, each individual should have two attempts to apply for a loan in a period of 6 months. (and yes I have already tried it 3 times here without knowing the 'guideline'!) Especially when it comes to money matter, I cannot see why lenders cannot be 100% totally honest with applicants, telling applicants what they are looking for...