BBC Programme on Credit Reports

Superscrooge

BBC Radio 4 Money Box programme today was all about Credit Reports.

Whilst regular posters probably won't learn anything new. It is worth listening too if you are not that familiar with credit files, credit reference agencies, scores etc.

http://www.bbc.co.uk/programmes/b086s8yn#play

fermi

Missed it, but may skim through on catch up.

norsefox

I listened to the podcast this morning. Plenty of reference to 'credit scores' and scores like 650/700 and 350/999 etc.

As far as I was aware (as it is so often repeated on here), credit scores are a marketing gimmick, but anyone listening to Moneybox would have thought that these were the be all and end all.

No real differentiation was made between credit file and credit score. It was implied that having having your Experian score lower would directly affect your ability to borrow*.

*Through the score reducing alone, not the underlying factors having the same effect

Superscrooge

norsefox wrote: »

I listened to the podcast this morning. Plenty of reference to 'credit scores' and scores like 650/700 and 350/999 etc.

As far as I was aware (as it is so often repeated on here), credit scores are a marketing gimmick, but anyone listening to Moneybox would have thought that these were the be all and end all.

I wouldn't expect any CRA representative to say 'Those credit scores we give you are just a marketing gimmick'

One thing that did puzzle me that the Clearscore rep said (from memory). 'Everyone starts off with a zero credit score and as you use credit responsibly, get yourself on the electoral roll, build up your credit history, your score will improve.

I often get the impression from posts on these forums, particularly with Experian, that those with little or no credit history start off with a 999 score rather than a zero score!

[Deleted User]

Totally agree. Everyone starts off with 999 and then drops points as they take out credit and get older.

My top tip is to stay 18 years old and never take out credit. That way, you can get whatever credit you want.

I'm pretty sure Peter Pan has a nice place and no mortgage to worry about.

Westminster

Deleted_User wrote: »

Totally agree. Everyone starts off with 999 and then drops points as they take out credit and get older.

My top tip is to stay 18 years old and never take out credit. That way, you can get whatever credit you want.

I'm pretty sure Peter Pan has a nice place and no mortgage to worry about.

I think it's exactly the opposite. Everyone starts at 0 and then increases as you build a history - pretty sure they said as much. This would be why those individuals with no mortgage, lots of savings etc etc get turned down for phone contracts.

Dandytf

Have to agree with starting 0

Which is why whilst young and applying for credit some may have been advised 'you don't have any credit history'

[Deleted User]

Westminster wrote: »

I think it's exactly the opposite. Everyone starts at 0 and then increases as you build a history - pretty sure they said as much. This would be why those individuals with no mortgage, lots of savings etc etc get turned down for phone contracts.

They do in real life - ie by the lender's viewpoint.

But the CRA scoring system itself tends to hand out a 999 score when you turn 18 and then drop it from there. Which is, of course, ridiculous.

Westminster

Deleted_User wrote: »

They do in real life - ie by the lender's viewpoint.

But the CRA scoring system itself tends to hand out a 999 score when you turn 18 and then drop it from there. Which is, of course, ridiculous.

Ah yes - a valid point!

PaulW922

I didn't think the programme was very good as it emphasised the suggestion that you have a single credit score, and that the one Experian supplies to you is it. Of course, that isn't true and the Experian one is just a guide that only you see. There was even a caller who said he believed an Experian score had been provided to a potential credit card lender and nobody but him right on that including the independent experts.

GingerBob_3

PaulW922 wrote: »

I didn't think the programme was very good as it emphasised the suggestion that you have a single credit score, and that the one Experian supplies to you is it. Of course, that isn't true and the Experian one is just a guide that only you see. There was even a caller who said he believed an Experian score had been provided to a potential credit card lender and nobody but him right on that including the independent experts.

There was a thread on here recently which seemed to provide evidence that lenders do get to see some sort of score supplied by the CRAs.