Credit club question - hit rate

littlefoot47

I don’t quite understand the hit rate on the credit club app, I thought it was calculated using your affordability and credit score to predict your changes of getting accepted for things
but I have a “good” credit score and “good” affordability for credit card and loans option, yet my hit rate is 5%.
how can it be so low when the other two are good? 

And what can I do to improve it?

Any advice appreciated!

cymruchris

I wouldn't worry about it - it's just a gimmick - my hit rate fluctuates between 10 and 15 percent - yet only last week I got a HSBC advance credit card and a Santander everyday credit card. The Credit club said I wasn't eligible for either. The Credit club uses it's own (Experian's) data to compare your history file with everyone else's - and then tries to work out based on what you have, and what you've applied for, and how successful you've been, gives you a percentage chance of getting X Y or Z.

Lenders however use their own internal scoring mechanism to decide whether they want you as a customer. So if you're interested in getting a card, use the eligibility checkers directly on lenders websites to see if there's a chance of success.

The whole 'affordability' and 'hit-rate' is nothing at all to worry about if it goes up down or sideways. 

It's your history that's most important. If you have credit cards, you pay them in full, then you're developing a positive history that banks will like. If you have missed payments all over the place, 3 CCJ's and 2 defaults things won't be so easy. 

phillw

cymruchris said:

I wouldn't worry about it - it's just a gimmick - my hit rate fluctuates between 10 and 15 percent - yet only last week I got a HSBC advance credit card and a Santander everyday credit card.  

Just from the information you have it's impossible to tell whether the hit rate is meaningful or not.
A correct rate could fluctuate between 10 & 15 without you changing anything, because your history is not going to be the only thing that lenders consider.
You only applied twice, which is well below your hit rate..
It's not going to be entirely accurate because it's calculated at a point in time based on information that is not exactly the same as when lenders actually make a decision to lend.

I don't think anyone is selling it as anything more than an indication that is based on information from lenders and your credit history. A rate of 0 wouldn't guarantee you can't get a loan, a rate of 100 wouldn't guarantee you would.

I don't think it's a gimmick, it just doesn't mean what you think it does.

The number you see is the percentage of products from those lenders that we've calculated you have a 70% or higher eligibility score on.

For eligibility they are quite clear:
The only way to find out if you'll be accepted for a credit card or loan is to apply. Yet that leaves a footprint on your credit file affecting your ability to get future credit. So in a perfect world you'd home in on the top card or loan you've the best chance of getting first, and that's what this tool lets you do.

Sometimes HD Decisions has enough information to give certainty that you'll be accepted for a credit card or loan from a credit perspective (still subject to fraud checks and whatnot), but currently that's only provided from your main bank and a few smaller niche lenders.

Unfortunately we can't always give you an eligibility score as not every lender has been willing, or able to share its credit policies with HD Decisions yet. Rest assured, we're working hard to get everyone in as soon as possible.

Some of the providers we search

We search more than 16 providers for credit cards and loans, some of the big ones are listed below. Unfortunately we don't cover the whole market yet, but we're working hard to add new providers all the time.

phillw

littlefoot47 said:

yet my hit rate is 5%.

The hit rate is a separate calculation based on criteria supplied by lenders which credit club has partnered with, on how likely that are to lend to you.

This might not be an indication of how likely you are to get credit from the entire market and won't just be based on your credit history.

The numbers are all estimates, the way to increase them is to earn more money, pay down debts, don't miss payments etc.