Credit companies do take credit score into acount

Tom99

[FONT=Verdana, sans-serif]That is according to the Daily Mail:
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[FONT=Verdana, sans-serif]http://www.dailymail.co.uk/money/cardsloans/article-5414557/Forget-pay-bill-hurt-credit-rating.html[/FONT]

[FONT=Verdana, sans-serif]"If you score number is too low you could be denied credit."

[/FONT] [FONT=Verdana, sans-serif]"A higher score means you may qualify for a better deal."

[/FONT] [FONT=Verdana, sans-serif]"If you are refused credit and the lender blames you credit score you can appeal"[/FONT]

[Deleted User]

That article is, unfortunately, complete garbage.

Very unusual for the Daily Mail.

binaryuniverse

In fairness that article doesn't explicitly state that the agency's score is directly used by lenders. The closest we have, that could be taken ambiguously is this:

Bear in mind that each lender has its own criteria for deciding who it lends to and will use other information — such as whether you have a history with the company. So credit scores are only one factor when making a decision.

But it still doesn't actually say the lender themselves use it.

The article does state that a lender may blame your score, but that word is used so interchangeably, and also can mean your worthiness after looking at your history, that it may not even mean the made up score at all.

Tom99

binaryuniverse wrote: »

In fairness that article doesn't explicitly state that the agency's score is directly used by lenders. The closest we have, that could be taken ambiguously is this:



But it still doesn't actually say the lender themselves use it.

The article does state that a lender may blame your score, but that word is used so interchangeably, and also can mean your worthiness after looking at your history, that it may not even mean the made up score at all.

I think you are being too kind. If you look at the three direct quotes I used from the article you cannot imply anything else but that the lender see an use the score number as a major factor when deciding whether to lend to you. I agree there is a slight let out at the end with "its not all they take into account",

meer53

The searches that lenders complete when making their decision don't show any "score" The decisions are made using information available from the searches, not from meaningless "scores"

(my job involves making lending decisions)

binaryuniverse

Tom99 wrote: »

I think you are being too kind. If you look at the three direct quotes I used from the article you cannot imply anything else but that the lender see an use the score number as a major factor when deciding whether to lend to you. I agree there is a slight let out at the end with "its not all they take into account",

Even so there is not one quote, from a lender, stating the score is taken in to account by them.

It also true that the score can be seen as a vague guide (but is not infallible) to your credit worthiness. So yes, it is likely, if you have a low score, the best credit options to you will be sub prime, whilst a 'good' score, makes it likely that you can get access to top credit cards, but not always.

But that still isn't saying directly the score is used by lenders.

However, it does read like an article designed to illustrate the value of a 'score', which is not a good thing.

molerat

Many lenders must use some form of scoring as that is how a computer based decision will work but it will be set using their own criteria, different with each institution, and not the one size fits all (or none) from the CRAs. My scoring is excellent, good or fair depending on which site I look at.

amfan

I do love how it states that paying car insurance monthly rather than annually adds 20 points. Think I'd rather not have those 20, even if it did make a blind bit of difference, than pay interest on monthly car insurance thanks all the same!