Anyone noticed the tightening of credit?

Shakin_Steve

When I logged in to Barclays, the 'pre-approved' loan amount was always there. It used to sit at around £35,000, but I'd seen it move up to £50,000 at one point (ridiculous, I know). It's now sitting at £4,000. Barclaycard have removed MT offers, but BT remain. Tesco's BT and MT remain.

enthusiasticsaver

I would be surprised if they don't tighten lending criteria given everyone is forecasting a worldwide recession for an indeterminate period of time. We only have one credit card and pay it off each month in full so don't get any offers.  

LordSomebody

dr_adidas01 said:

pecuniam_hominem said:

dr_adidas01 said:

Love that you're quoting the score numbers as they mean zilch lenders don't use them, bankrupts can have a score of 999 so what does that tell you?  What matters is your account conduct, how long you have had them and whether you pay them in full or pay the minimum.

Please stop parroting this cr*p. Sure, lenders don't have an arbitrary score they use.  However your credit score gives you an indication on how good your conduct is. e.g if you start missing payments or having late payments your credit score will do down.

Credit scores still have value.

Credit scores only have value to you if you believe in them, the scores you are given by a credit reference agency's means jack sh@t as no lender ever uses it.  Each lender has its own internal scoring method which they use to asses whether to lend to you or not.  Yes credit history plays it part and yes if you start missing payments and defaults you will notice that fictitious number drop.

As another poster has said there fictitious number has dropped and they have continued paying there bills and credit accounts the same as they have always done, so it can't be relied upon to mean anything.

What you should be more concerned about is that your credit reports are accurate and that there are no mistakes on it.

None of this really detracts from the simple fact that it is an indicator which, if regarded properly, still has a ‘use’ in that the CRAs are signalling whether they think there’s a problem with what you might be doing.

Do you also advise that MOT advisories are worth Jack S&t?

Time2Go_25

LordSomebody said:

None of this really detracts from the simple fact that it is an indicator which, if regarded properly, still has a ‘use’ in that the CRAs are signalling whether they think there’s a problem with what you might be doing.

Do you also advise that MOT advisories are worth Jack S&t?

As an indicator of what, your "score" can go up and down and it makes no difference to your credit worthiness. 

pecuniam_hominem

pdel61 said:

LordSomebody said:

None of this really detracts from the simple fact that it is an indicator which, if regarded properly, still has a ‘use’ in that the CRAs are signalling whether they think there’s a problem with what you might be doing.

Do you also advise that MOT advisories are worth Jack S&t?

As an indicator of what, your "score" can go up and down and it makes no difference to your credit worthiness. 

But it does.  The credit score is based on missed payments, how much credit you have etc etc. If your credit score is lower, you are less likely to get credit.

Or are you going to honestly tell me that people with low credit scores are just as likely to get credit than those with high credit scores?

The credit score itself doesn't mean you are a sensible user of credit, it does mean your credit record is good and therefore a good indication that you are a sensible user of credit.

alfred64

Asda money card not open to new customers at the moment

quackers82

pecuniam_hominem said:

pdel61 said:

LordSomebody said:

None of this really detracts from the simple fact that it is an indicator which, if regarded properly, still has a ‘use’ in that the CRAs are signalling whether they think there’s a problem with what you might be doing.

Do you also advise that MOT advisories are worth Jack S&t?

As an indicator of what, your "score" can go up and down and it makes no difference to your credit worthiness. 

But it does.  The credit score is based on missed payments, how much credit you have etc etc. If your credit score is lower, you are less likely to get credit.

Or are you going to honestly tell me that people with low credit scores are just as likely to get credit than those with high credit scores?

The credit score itself doesn't mean you are a sensible user of credit, it does mean your credit record is good and therefore a good indication that you are a sensible user of credit.

The scores are absolutely meaningless and give an indication of nothing.  My score would show as 'Very Poor' or 1 out of 5 depending on which credit agency a , I had 5 defaults showing on my file, YET I applied for a Tesco Low APR Credit Card and got 9.9% APR and a £4000 limit....that was back in 2015., yet if you went of the scores people would think I would only get a  Newday Aqua/Marbles or Vanquis at 39% APR and a £250 limit.   

IrishSean

So Adidas

Are ML and the MSE team wasting their time updating the Credit Score section of MSE? I've just read it; updated 17/03/20. In short lenders don't see or use a credit score: but for most people it's an imperative barometer of their credit worthiness and financial health.

To say they're crystal ball nonsense that don't mean jack is plainly wrong. To also say that ppl with high credit scores go bankrupt is, course, true but a vain attempt to win Strawman Argument of the Year; if someone's business collapses, (like due to Corona) they may well file for bankruptcy prior to their credit file 'catching up'.

But saying a credit score has no meaning implies 2 things: a) it has no value and b) If your credit score falls as a result of you mishandling your personal finances, it doesn't really matter. Both of these assertions are patently wrong (and could encourage financial irresponsibility in some).  

If you're sick, your temperature is one of the best ways of knowing you're ill. 

If you ignore your credit score and encourage others to do so you're simply saying, it's OK NOT to keep a close eye on your financial wellbeing and credit worthiness. I disagree with this almost as much I found your original reply pithy and patronising.

But heyho, not enough to fall out with you😀👌

My advice to others; keep an eye on your score

Willing2Learn

IrishSean said:

... My advice to others; keep an eye on your score

A change to your score represents a probable change to the data held within your file(s).  Therefore the only thing of importance, is that a consumer should regularly check their three credit files for inconsistencies or inaccuracies within the data recorded on your three credit files. 

It is the data in your file that a lender 'scores' you against, added to the data you submit in your application, added to the data the company may already hold on you as an existing or returning customer.


In a nutshell, it is all about the data.   Nothing more, nothing less... 

IrishSean

Quackers; that's a misrepresentation of credit scores

You perceived your score to be poor but you were still deemed 'attractive' to a few lenders who (in 2015) deemed you an acceptable risk. 

By your own admission, your credit history wasn't perfect and this reflected in your score. As with most others this reflects not just their credit-worthiness to Most lenders; it provides a numerical guide to help stay on track with their personal finances.

It's tempting to conflate 'someone lent me with a poor score' and 'why didn't I get credit with a perfect score' with 'credit scores are therefore BS' but that's far from true. Everyone knows someone's auntie who smoked 2 packs a day and lived to 90.

Your credit score, in the main, tells you if you've been good or bad with money which, even by the admission of those sceptical of their usefulness, is the very thing that WILL affect your BEST  chances of getting credit in the future. 😀 Like the thermometer: tells you you're ill, not what your disease is. It's a prompt to dig deeper, find out more & stay well.