Credit rating vs credit score? Confused?

seanwinf

Hi i know its been answered somewhere but cant find the threads. Never missed any payments no ccjs defaults etc but for some reason my numbered score is abit low and was refused a CC transfer about 3 months ago. Now i keep reading credit score dont mean anything to mortgages is this correct because my history is tip top? I believe the lower score is because of a lease car i have which the value was £27k but now the last 2 months shows as £680 instead. I have a mortgage now and wanting to sell and buy a bigger more expensive house.

AnotherJoe

This is all irrelevant to mortgages (and most other things) what matters is repayment history and affordability.. Go and see a broker.

Angry_Bear

The numbered score doesn't really mean much of anything at all. Nobody other then the credit report agency (and you) sees this score. Any lending insititution will look at your report and use their own internal rules to create an in-house score for you.

The "score" you see, is just the credit reference agency running their algorithm on your report. As their rules for scoring are not going to be the same as a potential lender it doesn't really tell you much.

ACG

The score does not exist.
Every lender scores you differently, they take into account the information on your report and the information on your application and then combine it and give you their own score. Each lender has their own calculation and some do not even score you, some just have black and white criteria you have to meet.

HappyMJ

If you have a score of 995 it does not mean you can go out tomorrow and apply for a £15,000 personal loan and expect it to be approved.

My "score" is much lower around 550 despite no late payments. I have outstanding debt equal to about 50% of my annual salary (whatever figure that might be - the CRA's have no idea) and I have recently applied and been approved for a £15,000 personal loan because I can afford it.

Someone with a 995 score may be living a life on benefits and have very little outstanding debt but because everything they have borrowed they have repaid in full and on time means they have a 995 score. They might be able to get a £200 limit credit card but they certainly wouldn't get a £15,000 loan.

seanwinf

Thanks for all replies but only thing that has confused me is why i would be rejected on a credit card transfer if my history is completely fine. Ive seen a mortgage broker and got a AIP but thats a soft search isnt it so no sure. Would the lease hire car have that much impact to get my CC rejected?

Thrugelmir

seanwinf wrote: »

Thanks for all replies but only thing that has confused me is why i would be rejected on a credit card transfer if my history is completely fine.

Number of current credit accounts, balance owed, balanced available, previous history (i.e. rolling balances over with no significant reduction in amount owed), use of credit over the past 6 years....

Does the above meet the lenders criteria?

All these factors and more are chewed over in seconds by algorithms analysing the available data.

amnblog

seanwinf wrote: »

Thanks for all replies but only thing that has confused me is why i would be rejected on a credit card transfer if my history is completely fine. Ive seen a mortgage broker and got a AIP but thats a soft search isnt it so no sure. Would the lease hire car have that much impact to get my CC rejected?

Their could be any number of reasons why they do not want you as a client at this time. Each reason is cloaked in mystery, and even the lenders staff will not fully understand how their scoring works.


A modest amount of thinking is done by people to set the thing up and from there the computers do all the thinking.

seanwinf

So would this have any effect on a mortgage application? I did have alot of short term debt because of the car lease saying £27k along with a small balance on a loan and small balance on a credit card at the time? So all in was £30k but my income is £48k on my own without wifes. But now my short term is £2k and out goings are around £1000 with the car and mortgage