Everyone always says on here your credit score means nothing, no one uses it or sees it etc...

sourcrates

The score the CRA gives you may mimic real life, it will be derived from the information they hold on you, however, that particular score an individual sees on their credit report is for there eyes only, it is not shared with anyone, nor is it the number a creditor or any other company would see who pays for such information.

Different algorithms are in play for commercial use, even though both scores may be similar or even the same, it’s a well known fact credit scores are used as a means to make extra revenue by the CRA’s.

[Deleted User]

TurningANewLeaf wrote: »

I was absolutely 100% shown a score. I vividly remember him turning his screen around to show me the score when he realised I was curious about how it worked, and I absolutely remember asking him if the number on the screen was a good score.

Yes I'm sure you were shown a score but it is unrelated to your score shown by any agency online and far removed from what a financial institute would see when assessing you for borrowing credit. The advice still stands, a credit score is meaningless.

Your score of 400 could have been out of 500 for example, or one I did recently with Rightmove was out of 700, CRA's online typically score out of 999 so none of them can be compared.

A letting agents credit check is quite limited and only shows public information and will not show the depth of detail that a finance institute will see. A tenancy check will typically consist of the following (the first 3 or 4 from a CRA the rest from information you or a referee provide):

• Bankruptcy check
• CCJ's
• Identify confirmation
• Electoral register
• Affordability check (salary:rent ratio)
• Employment reference
• Current landlord reference
• Address checks (from info you supply)

The tenants credit check will NOT show any of the following (or be scored on any of the following because they are not given any of this information):

• Credit cards
• Loans
• Payment history
• Defaults
• Late payments
• Credit limits and borrowing
• Recent credit searches

Although a finance institute will be able to see the above when assessing your suitability for credit.

TurningANewLeaf

PasturesNew wrote: »

Personally.... I pay cash for what I want and I don't want/need the nice looking things in the advert as that's how you run out of money

Well there is a lot of research that suggests the ability to be able to get credit in itself creates wealth.


In America, there used to be a lot of mortgage discrimination in the black and latino communities (there is a special term for it but I can't remember what it's called), it's illegal now although it might still happens to a lesser extent under the radar or by your zip code, I don't know, but the inability to be able to get a mortgage despite being on the same salary as your counterparts is going to mean you're more like to end up in a poverty trap, and then when you have nothing to leave to your children they're more likely to end up in that same trap and so the cycle continues.



I mean if you've already got millions in the bank then it doesn't matter, but if you haven't, what happens when you need a mortgage if you're not building up your credit history?

RG2015

sourcrates wrote: »

it’s a well known fact credit scores are used as a means to make extra revenue by the CRA’s.

Are you able to cite any objective evidence for this statement?

[Deleted User]

RG2015 wrote: »

Are you able to cite any objective evidence for this statement?

Other than the fact that lenders don’t use the score, yet the CRA’s try and sell you improvement products and also act as a broker (earning commission) for advertising to you “credit score improvement” credit cards, loans etc.

boo_star

At the risk of just parroting other posters it is incorrect that scores are NEVER used. Small companies such as estate agents can't really justify creating their own algorithms so may well use the CRA scores.

But generally speaking financial institutions and larger companies that may credit check you don't give two fudges about what a CRA thinks of you, they score you themselves.

sourcrates

RG2015 wrote: »

Are you able to cite any objective evidence for this statement?

How objective would you like it ?

Disclaimer in the T’s an C’s of credit karma website, says “we act as credit brokers”, the credit score is all apart of the sales process, they act as lead generators for the financial institutions whose credit products they try to flog you.

RG2015

I just think that it is poor use of language for a board guide on credit files and ratings to describe an opinion as a well known fact.

I happen to share this opinion but I would never describe it as a fact, let alone a well known fact.

Ben8282

RG2015 wrote: »

Are you able to cite any objective evidence for this statement?

It is self evident.

Ben8282

boo_star wrote: »

At the risk of just parroting other posters it is incorrect that scores are NEVER used. Small companies such as estate agents can't really justify creating their own algorithms so may well use the CRA scores..

No because the CRA's don't provide the scores to them therefore they can't use information that they don't have.