Credit scores oh dear !!

sourcrates

Today I've been chatting with someone who works within the payday loan industry, just happened to meet up by accident, so I thought I'd make the most of the fleeting opportunity that was presented.

Asked them about credit scores, most people seem fixated by them, and it was always my belief (and most on here) that lenders don't see your individual credit score, well I was wrong.

Apparently when a full credit search is done, the lender sees exactly what you see, your full report............ and credit score, this is further bourne out by lenders quoting individuals credit scores when challenging payday loan complaints.

They would not elaborate on weather that credit score formed any part of there lending decisions, but my assumption would be it probebly would yes.

So, straight from the horses mouth, I was not aware of this, and of course it's just the word of one person, but makes for interesting debate.

GingerBob_3

sourcrates wrote: »

Today I've been chatting with someone who works within the payday loan industry, just happened to meet up by accident, so I thought I'd make the most of the fleeting opportunity that was presented.

Asked them about credit scores, most people seem fixated by them, and it was always my belief (and most on here) that lenders don't see your individual credit score, well I was wrong.

Apparently when a full credit search is done, the lender sees exactly what you see, your full report............ and credit score, this is further bourne out by lenders quoting individuals credit scores when challenging payday loan complaints.

They would not elaborate on weather that credit score formed any part of there lending decisions, but my assumption would be it probebly would yes.

So, straight from the horses mouth, I was not aware of this, and of course it's just the word of one person, but makes for interesting debate.

It doesn't surprise me in the least. Despite all the 'experts' who contribute here, I've yet to see an output illustrating precisely what a searcher does ACTUALLY see. Come one then! Someone put up a screenshot.

tidds

Really interesting to hear. Definitely want more info on this!

glentoran99

http://www.experian.co.uk/consumer/questions/askjames309.html


You don’t actually have a single credit score – this is one of the great credit-checking myths. Lenders will typically use your credit report, along with other information they have, to calculate a score each time you apply for credit


from the horses mouth

glentoran99

sourcrates wrote: »

Today I've been chatting with someone who works within the payday loan industry, just happened to meet up by accident, so I thought I'd make the most of the fleeting opportunity that was presented.

Asked them about credit scores, most people seem fixated by them, and it was always my belief (and most on here) that lenders don't see your individual credit score, well I was wrong.

Apparently when a full credit search is done, the lender sees exactly what you see, your full report............ and credit score, this is further bourne out by lenders quoting individuals credit scores when challenging payday loan complaints.

They would not elaborate on weather that credit score formed any part of there lending decisions, but my assumption would be it probebly would yes.

So, straight from the horses mouth, I was not aware of this, and of course it's just the word of one person, but makes for interesting debate.

I would imagine that its two different scores being referred to, The lenders make their own score from the data, they don't use the CRA's score

glentoran99

http://www.experian.co.uk/consumer/credit-education/common-credit-myths.html


Each lender uses a unique method to calculate their own credit scores and some use a different formula for different products, such as loans and credit cards. Your Experian Credit Score is something only you can see and gives you an indication of how a lender may view you.

pcman1985

Whether or not a lender sees your score, it still does not matter, the score is still meaningless. And the deciding factors will be the information on your report.

You would probably see dozens of people who have a 999 score with Experian and get declined for credit.

GingerBob_3

glentoran99 wrote: »

http://www.experian.co.uk/consumer/credit-education/common-credit-myths.html


Each lender uses a unique method to calculate their own credit scores and some use a different formula for different products, such as loans and credit cards. Your Experian Credit Score is something only you can see and gives you an indication of how a lender may view you.

Well, here's another one of those questions:


Items in your credit history stay on your report forever: false


Your credit report is designed to give lenders a picture of your recent and current financial position - they're unlikely to be concerned about a missed payment that occurred over a decade ago because it has no relevance on your likely behaviour today. Most information about your credit history is therefore held for around six years.


Talk about equivocation (i.e. lying)!

GingerBob_3

pcman1985 wrote: »

Whether or not a lender sees your score, it still does not matter, the score is still meaningless. And the deciding factors will be the information on your report.

You would probably see dozens of people who have a 999 score with Experian and get declined for credit.

It's not meaningless if they use it to judge your credit worthiness. And anyway, it's not meaningless, it's indicative.

Stevie_Palimo

sourcrates wrote: »

Today I've been chatting with someone who works within the payday loan industry, just happened to meet up by accident, so I thought I'd make the most of the fleeting opportunity that was presented.

Asked them about credit scores, most people seem fixated by them, and it was always my belief (and most on here) that lenders don't see your individual credit score, well I was wrong.

Apparently when a full credit search is done, the lender sees exactly what you see, your full report............ and credit score, this is further bourne out by lenders quoting individuals credit scores when challenging payday loan complaints.

They would not elaborate on weather that credit score formed any part of there lending decisions, but my assumption would be it probebly would yes.

So, straight from the horses mouth, I was not aware of this, and of course it's just the word of one person, but makes for interesting debate.

Nonsense and I work in the payday loan arena and this does not happen.

Credit checking people yes but looking at credit scores, The person you know should have had a nappy fixed around there neck to catch the carp they were spouting

GingerBob_3

Stevie_Palimo wrote: »

Nonsense and I work in the payday loan arena and this does not happen.

Credit checking people yes but looking at credit scores, The person you know should have had a nappy fixed around there neck to catch the carp they were spouting

So could you perhaps put up a screenshot of what exactly is seen?