Experian - Waste of Time

moneymoron1

Hello,

I have learned that the experian credit score is a waste of time, and have an example that may help other people realise it.

On the 16th May my 'credit score' was 512 and today it is 835 which is still officially in the Fair category but it has gone up that much in 3 months with little changing.

I was in an absolute mess with Payday loans, and back in May I had about 3500 in outstanding payday loans, I managed to pay all this off but it shouldn't have had so much of an effect on the number.

My point is, my account has 72 accounts on it, of which 52 of them are payday loans, all are settled officially but three aren't updated yet on my file so are still showing balances.

My details on my credit file are 15500 outstanding debt, 80% of my total credit is being used, with a total of 72 accounts including ones that are settled as above.

I earn 47000 a year (recently started earning) and I am in a much much better position than I was in a few months ago.

Now for a question, although the payday loans will have done ridiculous amounts of damage to my credit worthiness, when am I likely to be able to get more credit, I know there is a rough estimate of a maximum of 50% of your income as credit, which I haven't got, I am probably using around 33% at the moment.

My remaining credit all costs me interest, and whilst I can pay it off now gradually. I was wondering how long it may be before I would be considered for a balance transfer card to move some over?

Thanks

Mm1

InsideInsurance

If they are payday loans you are wanting to move then you need to wait until you are acceptable to one of the few issuers of that offer the "super balance transfer"

The reality is that every lender has different things that it likes and hates. Whilst there are some fairly obvious universal ones such as no one liking recent defaults, the rest is more subjective such as the debt to income ratio, utilisation rates etc.

moneymoron1

Thanks, all payday loans have been paid off, my debts consist of just credit cards and a couple of overdrafts now that are now on the APR rates after finishing on the 0% interest rates.

Normal balance transfer cards will do

Experian_company_representative

Taking on new credit will cause a dip in any credit rating. If you stop applying for new loans, payday or otherwise, and manage your existing credit accounts well for a period of time then your credit rating is likely to grow. While the score you can get from a credit reference agency is just a guide to your credit report and how a typical lender will rate it, many people find this useful.

James

The_Boss

Experian_company_representative wrote: »

Taking on new credit will cause a dip in any credit rating. If you stop applying for new loans, payday or otherwise, and manage your existing credit accounts well for a period of time then your credit rating is likely to grow. While the score you can get from a credit reference agency is just a guide to your credit report and how a typical lender will rate it, many people find this useful.

James

I admire your persistance, but why not just admit that the only benefit of your scores is the extra revenue they generate for your business?

MoneySaverLog

The_Boss wrote: »

I admire your persistance, but why not just admit that the only benefit of your scores is the extra revenue they generate for your business?

Much as I agree with this sentiment, as an employee he cannot really do that can he?

At least they post on here, unlike the other 2 CRA's who do not appear to have a representative.

The_Boss

MoneySaverLog wrote: »

Much as I agree with this sentiment, as an employee he cannot really do that can he?

At least they post on here, unlike the other 2 CRA's who do not appear to have a representative.

Point 1 - I know. It was a question I wasn't expecting an answer to.
Point 2 - I thought that too - but would only be useful if they helped resolve credit file issues when customer services don't apply changes or not want to make them at all. We dont want someone else trying to persuade people that the score is useful.

_Andy_

"is just a guide to your credit report and how a typical lender will rate it, many people find this useful. "

Given the number of people who post on MSE who've found it to be anything BUT useful (after paying your company for the privilege), how do you justify this comment?

rizla_king

Experian_company_representative wrote: »

While the score you can get from a credit reference agency is just a guide to your credit report and how a typical lender will rate it, many people find this useful.

A 'typical lender' would rate someone with 6 defaults and a bankruptcy order on file as 'excellent' would they?

https://forums.moneysavingexpert.com/discussion/4099257

ValHaller

Experian_company_representative wrote: »

Taking on new credit will cause a dip in any credit rating. If you stop applying for new loans, payday or otherwise, and manage your existing credit accounts well for a period of time then your credit rating is likely to grow. While the score you can get from a credit reference agency is just a guide to your credit report and how a typical lender will rate it, many people find this useful.

The world is divided on this. There are those who believe that the credit score is the be all and end all and believe that this actual so-called 'credit score' is used by lenders. These are the gullible from whom you make your money.

The rest of us see it as slightly more truthful than a horoscope, but understand full well that each lender calculates its own score and think that your score is somewhere on a scale between a waste of time and a disreputable scam

InsideInsurance

ValHaller wrote: »

The world is divided on this. There are those who believe that the credit score is the be all and end all and believe that this actual so-called 'credit score' is used by lenders. These are the gullible from whom you make your money.

In fairness to those who you call gullible, in the USA, where Experian also operate, the credit score as presented by the CRAs is actually used. Therefore if you google and are not careful to check if they are talking about US or UK then you may believe the CRA scores are what is used.