Credit score help

beardybryn

I applied for a loan to consolidate my spending. I was offered it but the catch was that the outgoings i was trying to cut was increased. Oh this is HSBC by the way a bank i have been with for 35 years - nice. The cost 50% of the borrowing - yikes. Why?

So I go to Experian to find out my credit score something i have not had to do in 3 years. I have to pay another great way to decrease the spending i am trying so hard to do. Only to find out that my credit is "excellent". So Why?

Asking i find as haven't been there that is not my latest credit score. So when do i get it? When you update it. I update still non the wiser but hopefully that'll be a small delay.

What i need to know is NOW i have applied for this loan and been given such a BAD repayment scheme when what i need to to is lower my expenditure, if i go to somewhere else will the loan application be on my credit score and make it impossible to get an alternative from the 50% whopper i am being offered.

Any advice would be much appreciated. b

Pixie5740

If Experian rate you as "excellent" then why not ask Experian to lend you the money? "Oh, but Experian don't lend money," I hear you cry. That's correct, Experian don't lend money. Equifax don't lend money. Call Credit don't lend money. Therefore any credit score generated by these companies means nothing because the companies which do lend money don't use them. Something you would have learned yourself by reading the sticky at the top of this board or pretty much any of the threads already on this board.

m4rc

What Pixie5740 says is true beardybryn, and her frustration is because so many people fall into the trap of believing this score stuff is real and means someone, when it doesn't.

If I said I can tell you your special life result number, it combines your happiness, intellect, mental well-being and future potential, it's a score ranging 0-999 where 0 means 'oh well you may as well give up' and 999 means 'you are just simply perfect' would you be interested to know what your life result number is? I can tel you, and you can check anytime, and I will give you little tips on how to make it better, it will cost you just £14.99 a month, can I have your debit card number?

Hopefully you wouldn't sign up, but everyone seems to when the credit feference agencies off something similar involving personal finances.

There is an article on the BBC website where someone from Experian is interviewed and explains that nobody else sees the number and it's just for you and that it will differ from the other credit reference agencies. Sadly it's all just marketing to make money.

It's good to know if there are any issues on your file, like something fraudulent, or something you didn't know you had forgotten to pay years ago, or that addresses are up to date, you can get a full report for £2 from each agency, and there are three of them. Clearscore will show you your information in their own format online for free, Noddle show you some stuff for free and you pay for more info, Credit Expert (Experian) will show you free for a month then you pay £14.99 a month. The info they show you is the info they have, that's all real but the score is meaningless, 'excellent' means nothing. You were given the deal by HSBC for a reason they will never ever tell you. It could be about your age, your past dealings wi them, the road you live in, your occupation risk, your income, or it could be because they don't think you pay enough money into your account or you don't have a savings account with them, or an ISA, or something else. It could be anything and they don't have to and indeed won't tell you, they will just say it's because of your credit rating/file/history/score.

So although it's really frustrating there is nothing you can do about your score, just don't pay money to see it as its just wasting money as you already made clear.

I hope that helps a little, it's all made a bit complicated as there is such a huge belief system that we should b checking out credit scores often, its becoming the new religion - personally I don't believe in that either but that's not for debating here!

DCFC79

beardybryn just stop there, let me clear a few things up for you.

The score/rating given by the credit ref agencies doesn't mean squat, dont focus on the number, lenders don't see it (even if the lender says its due to your credit score), only you can. Your history is what lenders see.

Lenders will report to either report to 1 of the ref agencies 2 of all 3 so your rating will be different.

You have been offered the rate as the lender sees you as a risk, the risk being you wont use the loan to pay off your debts but spend it on something else and add to your current debt level.

DCFC79

m4rc wrote: »

It could be anything and they don't have to and indeed won't tell you, they will just say it's because of your credit rating/file/history/score.

Although saying that it can mislead the customer into thinking the credit score/rating is important when its the history that's important.

m4rc

DCFC79 wrote: »

Although saying that it can mislead the customer into thinking the credit score/rating is important when its the history that's important.

Totally agree, someone must be saying 'credit score' to people because it can't just be good marketing by the CRA's that is making everyone worry about it.

Superscrooge

beardybryn wrote: »

I applied for a loan to consolidate my spending. I was offered it but the catch was that the outgoings i was trying to cut was increased. Oh this is HSBC by the way a bank i have been with for 35 years - nice. The cost 50% of the borrowing - yikes. Why?

So I go to Experian to find out my credit score something i have not had to do in 3 years. I have to pay another great way to decrease the spending i am trying so hard to do. Only to find out that my credit is "excellent". So Why?

Asking i find as haven't been there that is not my latest credit score. So when do i get it? When you update it. I update still non the wiser but hopefully that'll be a small delay.

What i need to know is NOW i have applied for this loan and been given such a BAD repayment scheme when what i need to to is lower my expenditure, if i go to somewhere else will the loan application be on my credit score and make it impossible to get an alternative from the 50% whopper i am being offered.

Any advice would be much appreciated. b

As others have said. Credit Score is meaningless. Credit History is important.

Regarding your loan. When you say the interest is 50% I'm assuming this isn't 50% APR?

eg. If you borrow £10,000 over 10 years and have to pay back the value of the loan plus 50% (£15,000 in total) this is a reasonable deal. If however you borrow £10,000 over 1 year and have to pay back £15,000 it's a terrible deal!