Very Poor Credit Rating - Recovery time?

[Deleted User]

It’s no indication at all.

Lenders don’t see or use the CRA scoring mechanism.

The chance of approval is for the card from said provider, not the rate which is subject to personal circumstances upon making a full application.

Lenders scoring systems are different to the ones used by the CRA’s and are also confidential

Willing2Learn

Milotti wrote: »

Is credit score not an indication of credit history file?

Some of interest rates are 60% chance of approval some are 100% for example.

Are people just fed up credit scoring on here or can they offer literature from lenders on their irrelevance!? Haha

Yes, your Equifax/ClearScore credit score is impacted by your credit file. But it does not change the fact that lenders neither see nor use your credit score. Lenders only use the data in your credit file (added to the data you submit in any credit application). The criteria a lender uses is not the same as criteria Equifax/ClearScore use.

Milotti

Thanks both and noted. One could safely assume most lenders will judge based on the similar criteria otherwise credit scores would be completely irrelevant. I get that its not always the case but someone with a great credit score is going to get better deals than me assuming all things being equal

[Deleted User]

Wrong again.

The scores are irrelevant and bear no resemblance to lenders algorithms.

Bankruptees get a 999 score - would you loan to them despite the “high score”?

Someone with a 999 score gets refused a £20 per month SIM-only contract but someone with a 300 score gets a £350k mortgage.

Go figure and tell me they’re relevant

Milotti

No offence but how do I know you have any clue what you're talking about? What credentials do you have? I understand I need to take them with a pinch of salt but you've not offered any evidence of their irrelevance

Willing2Learn

Hi Milotti (you disbeliever)

Have a good read of the MSE article linked below:
Credit Scores - Bust myths & improve your score

Have regard to the following quoted text:

The three credit reference agencies, Experian, TransUnion and Equifax, have individual ways of scoring you, meaning the numbers you see may be different for each one.
Interestingly, lenders don't see this score at all - it's just for you. The score you see reflects what's actually in your file, which is what lenders will look through when you apply for a credit product.

overlyconcerend

Milotti wrote: »

No offence but how do I know you have any clue what you're talking about? What credentials do you have? I understand I need to take them with a pinch of salt but you've not offered any evidence of their irrelevance

As a starting point, none of the CRAs consider your income/ outgoings in the same way a lender does.

If I'm considering giving you a £100k mortgage/ car finance/ whatever... yes, I want to know that you have a history of paying your debts on time; But I also want to assess the affordability of the loan and the value of your collateral.

So, before I give you the loan, I want to know your income and outgoing (information not held by credit reference agencies) and the value of your downpayment vs the value of the house/car my money will be secured against.

Because the credit reference agency don't have this information, the information on your credit file only makes up part of the picture and therefore, while you might find it helpful, your credit score doesn't accurately represent the likelihood I'll loan you my money...

[Deleted User]

Google is your friend here.

As is the search box on this site.

And the sticky post at the top of this forum that tells you “what your credit score really means”.

And common sense, not getting drawn in by all the marketing drivel in tv.

Besides, the CRA’s are not lenders so how can they “score” you when they aren’t the ones lending to you?

Milotti

Thanks for the comments.

Im not being drawn into any marketing as its free to check your credit score etc. I checked out the article and it basically says credit scores are important!

I understand when approaching a lender for next car I will need to be able to show i can afford the car etc.

Im gonna borrow everything i can and short Equifax and Experian instead given the insight on this thread ��

[Deleted User]

The CRA scores are not important no.

Lenders own scoring algorithms etc will be but no one is privvy to them