Experian / Equifax - Credit Score

Peter_Connelly

Hi,


I recently applied online for a loan, via Santander, as my Equifax Credit Score was pretty much maximum score (i.e. I am an EXCELLENT borrower) but, for whatever reason, I was refused the loan. Personally, I know I am in great shape financially, I have a well paid job, I am a home owner, no CCJ's, etc... so a little confused.


The refusal email was instant so something I entered during my application they didn't like (or they have lightning speed access to my credit files). They said I would receive a letter detailing why!!!


The email also said they use Experian, something I haven't used in years, so I decided to re-subscribe and take a look. My account looked as it was 5 years ago, when I last signed in... i.e. my current address and recent previous addresses weren't listed. My Credit Score was in the Yellow (=FAIR). I updated all my information, the next day I was in the green (=GOOD). Surely this can't be right?


The letter from Santander, 3 days later, really didn't give me ANY information about why I refused the loan... it was very generic and non-specific. Disappointing. They did say they had their own Credit Scoring System but, again, wouldn't go into detail... it really is annoying and baffles me as I know I earn a decent salary and can more than afford the repayments (which is substantially less after I consolidate my other loans, the reason for the loan (+ some home improvements, which I wasn't able to select also on the application)).


I am starting to believe that the whole credit score system is seriously flawed and lenders aren't in the slightest thorough.


I also think that we should be entitled to know why we were refused in order to, at least, remedy any potential administration problems.


I am reluctant to try another provider just yet in case there is an error somewhere, which could be fixed, as this will add another "check" to my history.


What are your thoughts?


Yours,
Peter

Candyapple

Credit scores mean nothing.

The real factors are:
What is your annual salary?
Are you on the electoral roll?
What is your debt to credit ratio?
Any financial associates on your credit files?
Any late payments/defaults?

DCFC79

No lender has to offer you a loan, maybe you didn't fulfill the criteria for Santander.

Your excellent score is a prime example the score means nothing.

Peter_Connelly

Hi thanks,


That's what I'm starting to believe and starting to feel the £15 a month, each, for Equifax and Experian is pointless.

Candyapple wrote: »

The real factors are:

What is your annual salary? Quite high (a lot more than the national average)
Are you on the electoral roll? Yes (but for less than 2 years)
What is your debt to credit ratio? (69% but this loan is to consolidate)
Any financial associates on your credit files? no
Any late payments/defaults? about 5 years ago... there are a couple of "1" on my credit card history... I now have a DD so don't forget.

The strange thing is, my credit cards recently had a limit of £250 each (I lowered this myself) and, when both were at £0 balance, my score was very high. When I owed £200 on each, my score went into poor debt / credit ratio.


I raised my limit and now I am good again, it's a mickey mouse gauge to me. Totally unrealistic.


I am also getting offers (subject to status) from my bank for loans of around the same amount as I was just declined... so, someone somewhere thinks I may be suitable.


P

Peter_Connelly

DCFC79 wrote: »

No lender has to offer you a loan, maybe you didn't fulfill the criteria for Santander.

Your excellent score is a prime example the score means nothing.

I totally get that but would certainly love to know what criteria I didn't meet, for future reference.

SnowTiger

Peter_Connelly wrote: »

The email also said they use Experian, something I haven't used in years, so I decided to re-subscribe and take a look. My account looked as it was 5 years ago, when I last signed in... i.e. my current address and recent previous addresses weren't listed. My Credit Score was in the Yellow (=FAIR). I updated all my information, the next day I was in the green (=GOOD). Surely this can't be right?


The letter from Santander, 3 days later, really didn't give me ANY information about why I refused the loan... it was very generic and non-specific. Disappointing.

[...]

I am starting to believe that the whole credit score system is seriously flawed and lenders aren't in the slightest thorough.

I also think that we should be entitled to know why we were refused in order to, at least, remedy any potential administration problems.

It's not surprising Santander rejected your loan application. If they use Experian, and the address information held was out of date, Santander's credit search probably returned nothing.

There isn't really a credit score system. Santander, and other lenders/creditors, take the information you supply to them, information from credit reference agencies and, perhaps, other places and create their own score based on the information they have.

If lenders gave punters a detailed explanation for why their application was rejected they would probably quickly find all applications met their requirements.

Candyapple

Why are you paying £15 per month when a credit report will only ever cost you £2 each?

You haven't answered any of my questions and if you have a card with a limit of £250 that suggests you have a sub prime credit card which sounds like you are being economical with the truth and your "excellent" rating is as good as you think it is.

Mookiedolphin32

I had the same experience also with Santander, I've been in the same county council job for 11 years and been at current address for 9 years . I've had loans with my bank in the past and settled them .
I to have looked at Experian and Equifax and after looking nothing screams out to me .it shows all my settle loans over the past years back to 2005 .
So am also a little bit puzzled as to why I got refused for a loan also .

Peter_Connelly

SnowTiger wrote: »

It's not surprising Santander rejected your loan application. If they use Experian, and the address information held was out of date, Santander's credit search probably returned nothing.

There isn't really a credit score system. Santander, and other lenders/creditors, take the information you supply to them, information from credit reference agencies and, perhaps, other places and create their own score based on the information they have.

If lenders gave punters a detailed explanation for why their application was rejected they would probably quickly find all applications met their requirements.

I spoke to Experian about this and they said, although my details were not up-to-date, Santander would be able to see my linked addresses. If this does have a detrimental affect on score and application then it really is bad news for most people who don't sign up to these and update their own information. Surely they should have a better system in place to keep information current and up-to-date, particularly if lenders depend on this to decide whether someone is eligible or not?


I think applications should be more thorough and, ideally, 1-2-1.


Cheers,
P

Peter_Connelly

Candyapple wrote: »

Why are you paying £15 per month when a credit report will only ever cost you £2 each?

You haven't answered any of my questions and if you have a card with a limit of £250 that suggests you have a sub prime credit card which sounds like you are being economical with the truth and your "excellent" rating is as good as you think it is.

I answered all your questions above... they're in the "quote".


My CC limits were between £5,000 - £10,000 (I didn't owe this much)... Barclays kept upping the limits. I paid them all off, manually lowered the limit (which I said above) to try and help improve my score.

Peter_Connelly

I pay £15 so I can check at anytime... on a daily basis if need be. I am going to cancel these very soon, once I know where I stand and happy it's all looking good and up-to-date.