Why has my score reduced

sparkey1

delpy1 wrote: »

Thanks that's another free account opened but who do they get the information from is it Equifax or experian?

They get it from Experian

sparkey1

Deleted_User wrote: »

If they have the same facts, it will make no difference whatsoever.

The opinion of the CRAs is not of any interest to lenders.

Of course , they only pay the CRAs because banks are charities. Why would they pay them for their data. Experian revenue for its UK and Ireland division was 830 Million pounds last year. Arent the banks generous, paying all that money.

[Deleted User]

sparkey1 wrote: »

Why would they pay them for their data.

Because they want the data.

What an extraordinary question.

sparkey1

Willing2Learn wrote: »

I think CreditWise is just a CapitalOne tool to sell more of their products

Spot on. A few years ago there was drastic changes to peoples rated scores as the CRAs got closer to the lenders to make their scores more relevant to the data that the lenders want.

As a result they were able to release the free services that match scores to cards etc. You can be sure that Cap one will be close to Experian in order to flog more of their cards.

sparkey1

Deleted_User wrote: »

Because they want the data.

What an extraordinary question.

So the CRAs assessments are relevant then.

[Deleted User]

No. I've already said they're not (see post 41).

The data is all that matters.

sparkey1

Agreed.

The data is relevant and thats why the banks want the CRA information.

HSBC for example in its credit guidance openly admits that "Sometimes scores are calculated by a Credit Reference Agency and we may use these in our assessment."

So if you are making an application to HSBC they very much rely upon a scoring technique, not dissimilar to that produced by a CRA. Other lenders will put a different rating to it.

There is no opinion as such, its numbers, Experian wont say "They are a good risk" Its in the data.

[Deleted User]

That's correct.

Some lenders will ask the CRA to calculate a score for them, but it is always based on the lenders' specified criteria (which also varies by product), which is very different from the numbers presented to consumers.

gionnetto

Deleted_User wrote: »

The opinion of the CRAs is not of any interest to lenders.

This is incorrect. CRAs make a lot of money selling behavioural scores to lenders, which are based on a given CRA score PLUS the criteria of the lender.

Just ONE example is Delphi https://www.experian.co.uk/assets/insurance-services/brochures/delphi-for-customer-management-fact-sheet.pdf