Why you might be wrong about credit scores

DCFC79

Why not forget the whole score thing and focus on your data ?

I just make sure the history is correct all the while ignoring the score, once done I logout. I call it the 'check your credit report' game.

wizrares

2021BJ said:

No, it's definitely true.  You would have done better not faffing around trying to please the CRAs.  Just because you fall for the same sort of garbage that infests a lot of video games nowadays doesn't mean you're not better off without it.

God this is indeed very toxic when you end up belittling someone for sharing their personal experience. Gamification and user experience are what drives everyone into certain behaviour, from pushing or pulling a door because of the handle's design, lose weight, run 5Ks, and, as OP mentions, create healthy financial habits. The issue, it would seem, is that trying to play the CRA game won't bring them as close to their goal as playing the lenders' games.  

Deleted_User said:

The problem you have is that if you chase the credit score, you'll take actions which reduce your credit worthiness. What raises a score will often lower the rating a lender gives you. And vide versa.

If you wanted the highest score, you should never use credit. But that means that no lender will assess you as anything other than the highest risk

If gamification is your thing, then play the lenders' games, not the CRA's.

 I understand where you are coming from when saying that credit scores come from Credit Rating Agencies, however I don't understand what you mean by "actions that increase credit score reduce credit worthiness". 
Is what you mean that "If you wanted the highest CRA credit score, you would never use credit, however by not using credit, lenders will assess you as highest risk"? Also can you explain a bit more what you mean by "playing the lenders' game"?

[Deleted User]

Sure 

Scores respond positively to apathy and lack of activity and negatively to action. Given that lenders want to see responsible usage, you cannot please both lenders and CRAs.

Hence why bankrupts and 18 year olds tend to have great scores, as they're not using credit. But neither score highly with lenders 

2021BJ

wizrares said:

2021BJ said:

No, it's definitely true.  You would have done better not faffing around trying to please the CRAs.  Just because you fall for the same sort of garbage that infests a lot of video games nowadays doesn't mean you're not better off without it.

God this is indeed very toxic when you end up belittling someone for sharing their personal experience. Gamification and user experience are what drives everyone into certain behaviour, from pushing or pulling a door because of the handle's design, lose weight, run 5Ks, and, as OP mentions, create healthy financial habits. The issue, it would seem, is that trying to play the CRA game won't bring them as close to their goal as playing the lenders' games.  

Deleted_User said:

The problem you have is that if you chase the credit score, you'll take actions which reduce your credit worthiness. What raises a score will often lower the rating a lender gives you. And vide versa.

If you wanted the highest score, you should never use credit. But that means that no lender will assess you as anything other than the highest risk

If gamification is your thing, then play the lenders' games, not the CRA's.

 I understand where you are coming from when saying that credit scores come from Credit Rating Agencies, however I don't understand what you mean by "actions that increase credit score reduce credit worthiness". 
Is what you mean that "If you wanted the highest CRA credit score, you would never use credit, however by not using credit, lenders will assess you as highest risk"? Also can you explain a bit more what you mean by "playing the lenders' game"?

So you created a sockpuppet account to attack everyone.

Is that all part of this "gamification" nonsense?

Thrugelmir

wizrares said:

Also can you explain a bit more what you mean by "playing the lenders' game"?

Lenders don't play games. Despite all the conspiracy theories that abound. It's actually very straightforward.  Sensible use of credit as and when required, along with sound personal financial management. Build a sound credit history over a period of time. 

sleepyjones

I think your argument is that the score isn't pointless because it gave you a target to aim for ... which is a fair argument, but you could achieve this by giving yourself a wee gold star every time you made a payment on time and the amount of stars you give yourself will still be as irrelevant as your credit score to Mr big Bank.

sonofmerton

ask any lender do they use the scores found on websites that use these scores. none use them. they have no access to the score part anyway. they use income v current debt and their own internal reasons only, nothing else. the 'scores' are 'calculated' by 3rd party companies who have far less information than the lender will have. 

having seen this posting earlier i phoned one of my friends who was made bankrupt around 18 months ago. she has previously been obsessed with scores. she checked her 'scores' whilst we talked.  her scores are 958, 419 and 745 with 3 different companies. 

all of this is very much like those who chose to use ppi companies instead of doing it themselves. despite telling them that all the companies do is post the letter some would not accept it. 

the fact that someone chooses to disagree is their choice but i am tired of hearing how it amounts to bullying or belittlement because they aren't getting the answer they want to hear. 

MaryNB

bigkenny1975 said:

TadleyBaggie said:

The fact remains, no one else but you can see the "score".

I did not dispute that anywhere, that does not mean the score has no use which was kinda my point.

The comments made on this site aren't just that the score is useless, it can be detrimental because it's often misleading. You're much better off learning what the UK finance industry deems to be responsible credit usage (e.g. frequent but low credit card utilisation, no pay day loans, no missed payments etc) and sticking with that.

If I relied on my Equifax score it would have made my mortgage application last year much more complicated. I got Equifax to update my file to show I was on the electoral roll and my score went from "fair" to "excellent". Unfortunately, as a result of this update, Equifax incorrectly applied a Notice of Correction. I contacted two high street lenders for advice just before I applied for a mortgage and both said the NOC would be an issue and it would require my application to be reviewed in detail (contrary to Equifax insisting it would have no impact). Didn't matter than my score had just gone to "excellent", both lenders strongly advised me to get the NOC removed before applying for a mortgage because it would be problematic. After arguing with Equifax I got it removed and my mortgage application went though with ease.

My friend got rejected for a loan he was well able to afford even though his score was "excellent" across the three CRAs. His lender didn't see his score and didn't care. The looked at his file, saw he had just remortgaged and refused him to approve another credit application so soon after he remortgaged. 

RG2015

Fsonofmerton said:

the fact that someone chooses to disagree is their choice but i am tired of hearing how it amounts to bullying or belittlement because they aren't getting the answer they want to hear. 

In many cases it doesn’t just amount to belittlement it definitely is. You may be tired of hearing it, but if it genuinely is belittlement it needs to be called out.

Dandytf

I have posted via mse before that I also use Increases or Decreases in various cra Scores as an indication of changes in reports, could be on time payments as most mser's advise, it could be a missed payment/s when my circumstances change -at least the Score can be used as not every person reads through their reports/history regularly.
IMy latest example is after almost 10 years of dmp -it's taken until Jan 21' to witness my Experian Score rocket up-to 9xx's range again.
What has helped is on time payments of bills and risky new high apr cards past few years.
As OP Posted, far too much Negative comments when some use their Score as Mental Motivation to Visually help whilst improving their ratings.