Credit Scoring

KJH88

Hello,

I have spent the past year monitoring and improving my partner and I's credit scores via Noddle. As we are now only a few months out from starting the buying process, my intention is to also sign up for Experian starting from next month. However, when visiting the site this morning, I noticed that Experian is now providing your credit score, for free, as part of the CreditMatcher service, and so I have signed my partner up (I have previously had a free trial with Experian, and am experiencing issues in getting the service). On Noddle, my partner currently has a rating of 3/5 (expected, as we are clearing £1500 of debt from her account in the next month), but on Experian, using the CreditMatcher service, it is displaying a rating of 994/999. How is this possible? Are the rating criteria really that different?

Thank you in advance for your help with this.

glentoran99

Ignore the scores, pointless, please don't waste your money by signing up to Experian, Spend it on sweety mice instead, much better value for money

amnblog

Glentoran is just about right here.

Pay all your debt in full and on time.

That is all you need do.

KJH88

Fair enough. I've been debt free since January, and we've made great gains on my partners (she'll be debt-free also once this chunk is paid off). The difference between the two agencies just caught me by surprise.

Thanks for your help guys.

ACG

Nobody has one individual credit score.

Think of it like this, the credit agencies score you based on whatever their system is using the information they hold.

Each lender scores you using the information held on the credit report but also the information supplied on the application - ie:
Income & Expenditure,
How many people in the household,
How much your deposit is,
How big the loan is,
How much the repayments are
etc etc.

None of that information is on your credit report.

Ignore the score, it is as useful as a chocolate teapot. Just worry about how everything is displayed, the more green and less red the better.

Joy_mate

A. Simple way is never creat any debt, just pay off when you can in case you made.
B. Never miss any payments or DD or don't stay long on overdraft. (Lender might think of)
C. Don't use many bank accounts or credit cards. (More you use more it will go on your report. Once you have approved application and home contact in your hand, just take out new credit card to cover some early expense for new home)
D. At least keep nice and clear finance for 6 months prior to mortgage application. (Increase chance)
My partner has never used any credit scoring company, but still she has approved mortgage application, etc., simple reasons. Only one credit card since 2009, 2 bank accounts, no debt, even she was not on electoral roll before 2012. So credit score company is not mendatory. As long as you can afford the, Lender will lend you money.

ACG

If the only rule was being able to afford it, I would be out of a job.

Everything that goes on your application and credit reference agency affects the scoring of your application. Every lender uses a different algorhitm so it may fail with one high street lender but pass with another.