Will an Aqua card compromise my profile for a better card later?

YorkshireBoy

Anthorn wrote: »

But there is no evidence either way.

Yes there is. Google 'Principles of Reciprocity'.

Parva

Anthorn wrote: »

Let's look at this in a little more detail: The CRAs know the names of cards and lenders who provide us with credit. If they don't know how is it that they can put them on our credit reports? Now lenders pay a subscription for the software used to search and access credit reports. But to my mind if they don't get the names of cards and lenders on credit reports they are not getting the full service. I think that if I was a lender I would be peeved about it.

Why would they need to know the credit card provider? All they (or their automated systems) want to know is your credit limits and your utilisation of that limit across the many cards someone might own and they will have a formula that decides whether someone is up to their eyeballs in debt or a decent bet as being a good customer. It wouldn't matter if you had a £5k debt to Aqua or a £5k debt to American Express, both would count the same (the credit limit on each would play a part however) and be weighed up along with the rest of your report.

There's nothing to be gained for the credit suppliers in entering daily changes for a myriad of credit suppliers and using that as a rating system, far easier just to input the balance and limit for each credit card (regardless of supplier and APR etc) into a database and working out whether a customer is a decent bet to take on.

Anthorn

Parva wrote: »

Why would they need to know the credit card provider? All they (or their automated systems) want to know is your credit limits and your utilisation of that limit across the many cards someone might own and they will have a formula that decides whether someone is up to their eyeballs in debt or a decent bet as being a good customer. It wouldn't matter if you had a £5k debt to Aqua or a £5k debt to American Express, both would count the same (the credit limit on each would play a part however) and be weighed up along with the rest of your report.

There's nothing to be gained for the credit suppliers in entering daily changes for a myriad of credit suppliers and using that as a rating system, far easier just to input the balance and limit for each credit card (regardless of supplier and APR etc) into a database and working out whether a customer is a decent bet to take on.

That's pure speculation. Where's your proof? All I can say in response is that if you think that's all a lender wants to see or indeed does see then you haven't seen a credit report.

It does matter if the lender is Newday (Aqua) or American Express because Amex is harder to get than Aqua due to having more stringent application requirements. Personally, I would rate a consumer who is keeping an American Express charge card in good order a lot higher than a consumer who has Aqua. Having an American Express card is almost a credit reference in itself.

Lastly, if lenders don't see the name of the lender, the card or the APR can we say that lenders don't know that we are up to our eyeballs in Payday Loans or doorstep loans most of which will be small amounts?

I rest my case.

Parva

Anthorn wrote: »

That's pure speculation. Where's your proof? All I can say in response is that if you think that's all a lender wants to see or indeed does see then you haven't seen a credit report.

It does matter if the lender is Newday (Aqua) or American Express because Amex is harder to get than Aqua due to having more stringent application requirements. Personally, I would rate a consumer who is keeping an American Express charge card in good order a lot higher than a consumer who has Aqua. Having an American Express card is almost a credit reference in itself.

Lastly, if lenders don't see the name of the lender, the card or the APR can we say that lenders don't know that we are up to our eyeballs in Payday Loans or doorstep loans most of which will be small amounts?

I rest my case.

Part of the application process is to give your income and this will be weighed up alongside your creditline limits and usage. Who provides that and at what APR and whatever else is irrelevant to a simple (well, complex) database algorithm that decides whether a person is acceptable for a credit card or whatever credit. The algorithms only need the basic figures, why would credit card companies want to add more complex things like high APR credit card usage and things? Anyway, topic done to death.

Anthorn

Parva wrote: »

Part of the application process is to give your income and this will be weighed up alongside your creditline limits and usage. Who provides that and at what APR and whatever else is irrelevant to a simple (well, complex) database algorithm that decides whether a person is acceptable for a credit card or whatever credit. The algorithms only need the basic figures, why would credit card companies want to add more complex things like high APR credit card usage and things? Anyway, topic done to death.

But where is your evidence? What exactly is the "simple (well, complex) database algorithm used by lenders that decides whether a person is acceptable for a credit card or whatever credit"?

haslam22

It's a fact that lenders cannot see other lender names on the credit report that Experian/Equifax/Callcredit provide for them. I can't put the source here (won't let me post links) but it's on Experian's website that they don't share this information with others, it's only shown in your own credit report which is more comprehensive than the actual report they give over to others. So they won't see your Aqua card on there.

Parva wrote: »

The algorithms only need the basic figures, why would credit card companies want to add more complex things like high APR credit card usage and things? Anyway, topic done to death.

It would allow the lenders to make a more informed decision. Since credit card companies are all about balancing risk and making money, high APR subprime cards show an applicant as being more risky and less financially stable. They would surely use this information if they had access to it, but they don't.

takman

Anthorn wrote: »

That's pure speculation. Where's your proof? All I can say in response is that if you think that's all a lender wants to see or indeed does see then you haven't seen a credit report.

It does matter if the lender is Newday (Aqua) or American Express because Amex is harder to get than Aqua due to having more stringent application requirements. Personally, I would rate a consumer who is keeping an American Express charge card in good order a lot higher than a consumer who has Aqua. Having an American Express card is almost a credit reference in itself.

Lastly, if lenders don't see the name of the lender, the card or the APR can we say that lenders don't know that we are up to our eyeballs in Payday Loans or doorstep loans most of which will be small amounts?

I rest my case.

Here is a reply directly from Experian and posted on their website that lenders do not see the names of the credit providers so it is a fact!.

http://www.experian.co.uk/consumer/questions/askjames248.html

In regards to Payday Loans these are included in a section called "Short Term Loans" and they will know that a short term loan paid off in 30 days is a Payday Loan.

Here is another link from provident:
https://www.providentpersonalcredit.com/money-matters/will-taking-out-a-provident-loan-give-me-a-bad-credit-score/

That explains that Doorstep Loans are also in the Short Term Loan category in credit reports. They then also go on to say that providers names don't appear on credit reports!