Lenders

Hi Everyone,

Sorry if this subject has popped up before, but I was wondering would it be possible if all Lenders would show what there minimum entry would be for accepting people for credit/loans.

This would surely help to improve people already on bad/poor credit not too apply. Sure there are soft quotations which will not impact your credit score but wouldn't it be more convenient if the lenders got together and just outline their instant refusal and minimum credit score

For example
AN other lender
Min Credit Rating (Experian): 500
Instant Decline: Default (not satisfied), Bankrupt

Something like that would be a boon for people and I feel would be a win win for both consumers and credit lenders (less reject applicants)

Anyway its just an idea I had whilst talking to a colleague and was wondering if this sort of an idea is a good one or bad?

Replies

  • edited 30 July 2013 at 8:39PM
    izoolsizools Forumite
    7.5K Posts
    edited 30 July 2013 at 8:39PM
    The reason credit scoring parameters are never shared with Joe Public is because it would result in countless people tailoring their application to suit the lender's credit scoring system.

    Remember that your credit file only makes up one proportion of what they score you on - they also look at your job, your salary, how long you've been with your bank / employer / at your address, your relationship status, housing status, number of dependents etc and putting the "ideal" figures into an application for credit can boost someone with a less than ideal credit file enough to pass the lender's credit scoring.

    Also note that lender's don't see the scores that the likes of Experian sell to joe public. They make their own score based upon their own criteria taking into account, as I've said, the data on your credit file but also the data on your application and anything they may already know about you from previous dealings.

    So no, they won't share their criteria.

    Oh, and stop taking any notice and especially paying a single penny for "credit scores". There's no such thing; lender's don't see or use this data and your score will vary from lender to lender depending on their scorecard. All they see from your credit file is the data - accounts, searches, court info, CIFAS info, electoral roll data - but no score.
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  • k1nsterk1nster Forumite
    2 Posts
    izools wrote: »
    The reason credit scoring parameters are never shared with Joe Public is because it would result in countless people tailoring their application to suit the lender's credit scoring system.

    Remember that your credit file only makes up one proportion of what they score you on - they also look at your job, your salary, how long you've been with your bank / employer / at your address, your relationship status, housing status, number of dependents etc and putting the "ideal" figures into an application for credit can boost someone with a less than ideal credit file enough to pass the lender's credit scoring.

    Also note that lender's don't see the scores that the likes of Experian sell to joe public. They make their own score based upon their own criteria taking into account, as I've said, the data on your credit file but also the data on your application and anything they may already know about you from previous dealings.

    So no, they won't share their criteria.

    Oh, and stop taking any notice and especially paying a single penny for "credit scores". There's no such thing; lender's don't see or use this data and your score will vary from lender to lender depending on their scorecard.

    Oh well, that idea is shot then! Back to pot luck applications :)
  • izoolsizools Forumite
    7.5K Posts
    'Fraid so :(
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