Current and savings bank account balances 7

GBH1968

Why does my credit report not show what balance I have in my current and savings bank accounts and why is no value given to my credit score by being a good saver which in turn helps banks to use our money to lend to people at high rates of interest compared to the poor rates of interest that are offered to savers like myself?

mwarby

Your credit report, only reports lines of credit, ie money you are being lent

Savings don't change the risk for most credit products, as you could easily burn through them. The presence of savings now and or in the past doesn't stop you later defaulting on a debt. I know not that long before my IVA I had a decent amount of savings, but didn't stop me getting into the mess I got myself in

GBH1968

I agree that this may be the case, however I still believe that as any credit report is only as good as the time it is checked there should still be some value to your score if you are saving rather than spending as it acts a sign that you are clearly trying to be careful with your money and showing that you don't have to rely on lent monies to get by.

I feel there is only a good value to your credit score for borrowing only and should be better rewarded for saving with higher interest rates as well as a higher credit score when your money can be used by the financial institutions to charge high interest rates for lending.

DCFC79

Your score is of no importance/relevance to anyone other than yourself, lenders don't see it.

Doctor_Duke

Your credit report is what is important to lenders and your history in repaying borrowing previously. Savings are not recorded as this is irrelevant to how you have managed your borrowing. Lenders want to know that you will repay what you have asked to borrow. Your past performance is what counts not a score.

Nebulous2

There are ways to build a history without borrowing. Utility accounts, mobile phones and get a credit card and pay it in full every month.

darkidoe

GBH1968 wrote: »

I agree that this may be the case, however I still believe that as any credit report is only as good as the time it is checked there should still be some value to your score if you are saving rather than spending as it acts a sign that you are clearly trying to be careful with your money and showing that you don't have to rely on lent monies to get by.

I feel there is only a good value to your credit score for borrowing only and should be better rewarded for saving with higher interest rates as well as a higher credit score when your money can be used by the financial institutions to charge high interest rates for lending.

People can always borrow money to show that they have 'savings' when applying for credit, which will not be a accurate picture of their financial health. Track record of paying credit and keeping a good credit record shows past behaviour and helps predict future behaviour will seem to be more reliable. Because history usually repeats itself:;)

GingerBob_3

One of the Experian reps who occasionally posts on here is on record as saying he would like to see their credit reports give a much broader picture of people's finances by the inclusion of assets as well as debts. Of course this is not permitted AT THE MOMENT, but Experian and the others do have knowledge of your potentially misleading current account turnover data.


You can rest assured that Experian will be beavering away in the background trying to convince whoever has influence in these matters, that we should all submit to further privacy breaches and more financial surveillance, by the inclusion of out assets in the CRA databases.