Equifax and experian why is credit rating so different

Have checked my credit rating against both and they differ a lot.
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  • The_BossThe_Boss Forumite
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    Because they are basically just random numbers that cause confusion.
  • exponentialexponential Forumite
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    I get the same...

    Experian and Equifax show "good" scores yet Noddle shows a score of just "1".

    All showing correct info on all three CRA's.

    Would the Noddle score scupper my chances of obtaining credit if needed even if both Equifax and Experian show "good" scores??
  • InsideInsuranceInsideInsurance Forumite
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    Almost no one ever sees your "scores" and most companies only use one provider.

    For almost all credit providers (exc insurers) they have developed their own scoring system based on what is important to them etc and the CRAs are the data providers into that system not the ones that have actually derived how the score will be calculated etc.

    It would be good if we followed the USA system where your score is set but we dont, each company has its own methodology
  • The_BossThe_Boss Forumite
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    I get the same...

    Experian and Equifax show "good" scores yet Noddle shows a score of just "1".

    All showing correct info on all three CRA's.

    Would the Noddle score scupper my chances of obtaining credit if needed even if both Equifax and Experian show "good" scores??

    I don't think this forum is fulfilling its potential since we're still getting posts like this on threads where it has already been pointed out that the scores are worthless.
  • So if they are worthless, why are we encouraged to attempt to improve our credit rating?

    (I'm not arguing with anyone's opinions or experiences, I'm just somewhat confused about this whole credit score malarkey.)

    I understand, to an extent (through my own debt problems) how it works......i.e. the credit companies look at your history, current credit usage, any defaults, missed payments etc, etc.
    But why is the message, generally "improve your credit score if you want credit", and not "improve your credit report as a whole if you want credit"?

    I've seen my credit score fluctuate in the last year for no apparent reason, 2 years ago it was poor but I've made leaps and bounds since then and managed to up this mystery score (it's now 'fair'!), but more importantly improved my credit worthiness and have succesfully applied for credit in the last 3 months (I only did so because of the new "fair" score to try to up the score a bit more). However, as I said, my actual score fluctuated during the last 12 months but there has been no dramatic change in my finances, either positively or negatively and it was only 3 months ago I made any attempt at applying for credit again.

    I'm not sure I'm making much sense here!

    But what I'm trying to say is if it's worthless why have I (as an example!) been accepted for credit? Coming from a poor credit history (Defaults which forced me into a DMP; settled in 2010) and the ONLY thing that has changed is my credit score........are they really worthless?
  • edited 23 June 2013 at 10:05AM
    The_BossThe_Boss Forumite
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    edited 23 June 2013 at 10:05AM
    Improving credit file and improving Experian/Equifax/Noddle score are different things. They are not lenders and do not score you as a lender will. I've not seen any accurate advice saying people should improve these scores. When you see people with defaults having better 'scores' than those without it sums up their uselessness.

    The reason to maintain your credit file is because this data is used by lenders when they score you. Lenders also use data from your application form to score you. Your salary is a big big part of how they score you. After all, you need income to repay debts and the level you have is a key driver. As is time in current job. Where is this data on your Experian/Equifax/Noddle credit file or score? An unemployed single mum on benefits reported an 'excellent' Experian score but a lender would be most unlikely to offer any sort of credit. So again, where is the worth?

    Too many people cannot distinguish between 'credit file' and 'credit score' and use these terms interchangeably. They also think that the score is the be all and end all, which it is not since lenders score a lot differently to Experian etc.

    In the example above, the score fluctuated for no apparent reason - that should have been a clue about their pointlessness. As for 'the score must be accurate as I have been accepted for credit' - this is more by coincidence than anything. Even a broken clock is right twice a day.
  • ValHallerValHaller Forumite
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    mochynbach wrote: »
    So if they are worthless, why are we encouraged to attempt to improve our credit rating?
    As far as I can see Experian http://www.experian.co.uk/consumer/experian-credit-score.html and Equifax http://www.equifax.co.uk/Products/credit/credit-score.html are promoting improving your so-called 'credit-score' because it lines up queues of mugs willing to pay them a regular monthly sum to see how their so-called 'credit-scores'are improving.

    Particularly insidious is the video from 'Bobby' on the Equifax site because he is improving his so-called 'credit-score' to get a mortgage. Some of the things you can do to improve your so-called 'credit-score' are actually damaging to your mortgage prospects.
    You might as well ask the Wizard of Oz to give you a big number as pay a Credit Referencing Agency for a so-called 'credit-score'
  • ValHallerValHaller Forumite
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    The_Boss wrote: »
    Too many people cannot distinguish between 'credit file' and 'credit score' and use these terms interchangeably.
    Absolutely. The only thing you should take note of is whether the information on your credit file is accurate.
    You might as well ask the Wizard of Oz to give you a big number as pay a Credit Referencing Agency for a so-called 'credit-score'
  • Sorry to revive an old post, but thought this was relevant.
    Checked my eligibility for a card last night and again this morning (on the eligibility checker on this website).
    This morning it has changed completely to what it was last night; I'm eligible for more cards and with a higher % likelyhood of acceptance.

    So, went to check my Experian report and my score has shot up.
    Again. is the score really worthless? The eligibility checker on here seems to use it as a factor.

    It's helped me keep an eye on my finances and given me an 'apparent' target to reach, from someone who has proven, in the past, to be bad with money (and ignorant of credit and it's dangers) it's helped me, (along with other resources), learn about credit and get back on track.

    I think it's a good 'indicator' for someone like me (who, by the way, isn't stupid!), but has grasped the concept of credit a bit too late and made foolish mistakes as a result.
  • So, went to check my Experian report and my score has shot up.
    Again. is the score really worthless? The eligibility checker on here seems to use it as a factor.

    Of course the scores are worthless like the eligibility checkers as they leave vital information out.
    "You know when it's cold outside when you go outside and it's cold"
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