Universal credit score in UK?

Malkytheheed

Would you support a "REAL" credit score in the UK? Like the US has? A genuine credit score number you could see? Do you think this would help with all the people believing their current "credit scores" to be accurate? Would it make it easier for people to get to grips with their finances and see the real impact certain actions have? 

I personally would welcome it. It would would make getting credit much less of a stab in the dark for so many amongst other things. 

Yes a number is an over simplification of a credit file. But it would be a good starting point for people. Because at the moment 99% of the general public think their UK scores are actually accurate, important and meaningful. Which they are not. 

Not only that. FICO make it crystal clear exactly what makes up your score and in what percentages. This would make it a lot better for people to get to grips with than the complete iron curtain you have in the UK from lenders scoring systems.

Dandytf

Nice idea though makes very little difference to my current medium term debt situation.
Maybe it could work for younger generation.

D3xt3r5L4b

Nope.
It will become an obsession

maxximus75

D3xt3r5L4b said:

Nope.
It will become an obsession

Isn't it, already?

D3xt3r5L4b

But more so when people learn it does actually “mean” something. 

Willing2Learn

I prefer the British system, whereby it is up to lender to score you against their lending criteria.

I believe it is easier to keep on top of data inaccuracies with the UK system too.

Malkytheheed

D3xt3r5L4b said:

But more so when people learn it does actually “mean” something. 

But people, (99% of the public already think it means something). So that's not really a valid point. 

At the moment you have a nation of people who are obsessed with fixing and raising a score that is both plucked out a hat and yoyos up and down for no reason.

Surely having a score that makes sense would be better than what we currently have? 

MEM62

On the basis that each lender will apply their own criterion, which not only looks at the individual but also their target demographic for that particular product and 'REAL' score would be just as meaningless as any that are out there now.  

The_Boss

Perhaps having only one credit scoring reference agency might be a better idea.  I think a lot of the confusion is when people have an awful Experian but good Equifax score (or vice versa, or with whatever Noddle is called these days etc) due to different data being reported on each and differences in calculating the scores.

And then maybe that CRA should be banned from marketing the scores they produce as a "credit score" and implying how important this is in their headline advertising.

Takmon

Malkytheheed said:

D3xt3r5L4b said:

But more so when people learn it does actually “mean” something. 

But people, (99% of the public already think it means something). So that's not really a valid point. 

At the moment you have a nation of people who are obsessed with fixing and raising a score that is both plucked out a hat and yoyos up and down for no reason.

Surely having a score that makes sense would be better than what we currently have? 

I've actually found that most people generally don't care about their credit history (or any score) unless they are applying for something like a mortgage. Outside of this forum most people are financially lazy and just aren't that interested.

MinuteNoodles

Malkytheheed said:

Would you support a "REAL" credit score in the UK? Like the US has? A genuine credit score number you could see?

Absolutely not. If you bother to do some research into the negatives they have in the US with their system it includes people being looked over for jobs purely because of their credit score. Given you can have a low score just because you're financially responsible and don't use credit is it fair that you lose the chance to get a job because of your score?