Credit Expert - Disappointing score

Eonel

The_Boss wrote: »

What does this mean? Experian don't factor your salary into their worthless 'score' at all (which is one of several reasons why it is worthlesss) so not sure what your point is?

Experian do not ask your salary, but nonetheless give a lower credit score for having high credit accounts/availability/balances, Implicitly their model must use an average salary to assess what is a "high" amount of credit.

Hence, people on JSA can get an unrealistically high score - we see this all the time on these boards. The model assumes they are employed at average salary.

And people like the OP on a higher salary get a correspondingly lower score. Assume OP has a 10k car loan - he has never confirmed the amount. This is not an issue on his 50k salary. However the model assumes he earns average salary where this would be an issue.

Because of this & other assumption the Experian model must make, all posters including myself agree the score is meaningless.

Thrugelmir

Save yourself the £14.99.

Experian_company_representative

Eonel wrote: »

Your salary is obviously good - Experian will assume a much lower salary in their logic, potentially giving you a misrepresentative low score.

Hi there, just to clarify, your Experian score is a guideline as to how we believe lenders could rate your information. As we don't hold salary or savings information these aren't used in the calculation of your Experian score. If a lender needs this information, they will normally ask for it as part of the application you make to them. Regards Jo

Eonel

Thanks Jo. I accept Experian do not hold or use salary data.

There is a link between income and available credit. Most Lenders do ask for income details and only grant credit up to a level sustainable by the individual's income.

While the quantitative analysis Experian use in the Credit Score will only be based on the data you do have, it will also be reflecting levels of income which are implicit in the data.

This results in meaningful guideline Credit Scores for individuals with average income. But can also result in Credit Scores which are not meaningful for individuals with lower or higher incomes. Low income is a common reason behind many of the "Help, i have a good credit score but can not get Credit" posts on this forum.

kirkbyinfurnesslad_2

Experian_company_representative wrote: »

Hi there, just to clarify, your Experian score is a guideline as to how we believe lenders could rate your information. As we don't hold salary or savings information these aren't used in the calculation of your Experian score. If a lender needs this information, they will normally ask for it as part of the application you make to them. Regards Jo

Therefore your guideline is a complete waste of money and fools to many people. Your scorecard is of no value

kirkbyinfurnesslad_2

Why on earth would some one let themselves be ripped of for £15 a month

Words fail me

Penelopa.Pitstop

chr24 wrote: »

could any of the experts there tell me about car finance then...

I'm currently on one of these P.C.P deals where at the end of the term you have options to pay the balloon payment and keep the car, hand the car back and take a new one or hand it back and walk away.

My current deal runs out in a couple of months and I'm handing the car back to walk away from that manufacturer.

However, I am getting a new car from a different manufacturer and again its on one of these PCP deals.

Again, I've never missed a payment and never any late payments, but my question here is do these PCP deals damage your profile instead of having straight forward finance to owning the car out-right after the finance term?

Before anyone lectures about wasting money on new cars and depreciation, its my vice....don't drink and don't go out much so need to spend money on something and this is it (I get enough of that lecturing from the folks and new gf!)

When you return your first car, finance will be settled and you will see it in your credit history. Then new finance will show up. It's not damaging in any way. It's just financing and shows that you paid on time and you settled it. Nothing to worry about.