Credit score and my bank account balance

TheLittleSaver

Hi everyone

it might be a silly question, so I apologize in advance... but how can the "big three" (expedia, transunion and Equifax) give you a credit score if they don't even have access to your bank account?

Basically, I almost never checked my credit score (my bad, I know... I will change that), but now I did, on all three, and they all show £0 as my balance in my current account? Which is absolutely not true. I am pretty sure that this has an impact on my score, as they would consider my "affordabilty" extremely low. On one of them I even got the message that, after paying my usual expenditure in a month, I would be left with less than £250 which, again, is absolutely not true.

I have never had any problem whatsoever in paying anything, always paid on time, I even set up my credit card to pay it in full everytime. And still, I have an "average/fair" score? Taht doesn't make sense to me, unless they actually believe I have nothing in my bank account.

Is this something you are experiencing too, or is there anything I can do about it? And of course I am writing to them to ask for clarifications, but for now one of them replied and said they are not provided with the info about my bank account... but if they don't have those info, why inventing them?

Any idea?

Thanks

emmajones1976

The balance in your current account is irrelevant as they they only report overdraft info. 

Credit reports dont concern themselves with savings and bank account credit balances, If you had £10 or £10000 in your current account it would impact absolutely nothing. 

Put the pen down so to speak, a letter/email is pointless.

[Deleted User]

Your credit scores are irrelevant in any case, so you've done nothing wrong by never checking them. You just need to look at your credit files and the data in them from time to time.

Lenders will assess you on your circumstances and credit history, not a made up number.

LaHostessAvecLaMostess

TheLittleSaver said:

Hi everyone

it might be a silly question, so I apologize in advance... but how can the "big three" (expedia, transunion and Equifax) give you a credit score if they don't even have access to your bank account?

Basically, I almost never checked my credit score (my bad, I know... I will change that), but now I did, on all three, and they all show £0 as my balance in my current account? Which is absolutely not true. I am pretty sure that this has an impact on my score, as they would consider my "affordabilty" extremely low. On one of them I even got the message that, after paying my usual expenditure in a month, I would be left with less than £250 which, again, is absolutely not true.

This message will be based on your stated income and they'll use average figures for your expenditure.  This is no different than a lender would do. They typically don't ask what your expenditure is, they go off averages (I think usually based on ONS figures.)  This, of course, means the frugal are perhaps a bit worse off and those who blow the lot are a bit better off but it is what it is.

I have never had any problem whatsoever in paying anything, always paid on time, I even set up my credit card to pay it in full everytime. And still, I have an "average/fair" score? Taht doesn't make sense to me, unless they actually believe I have nothing in my bank account

There are a variety of factors that could put you in this category, including that the CRA scores are often works of fiction.  But just because you think everything is fine, doesn't mean it is.  People frequently dismiss things they think are unimportant or faux pas that are explainable but a lender would not view them in the same way.

Is this something you are experiencing too, or is there anything I can do about it? And of course I am writing to them to ask for clarifications, but for now one of them replied and said they are not provided with the info about my bank account... but if they don't have those info, why inventing them?

Any idea?

Thanks

As emmajones1976 says, only debit balances are reported to the CRAs, credit balances show as £0 for current accounts. This is absolutely normal and nothing to be concerned about.  Credit balances are rarely taken into account when making lending decisions anyway so the fact that the CRAs don't know how much you have won't make a difference.

TheLittleSaver

Ok, I understand. Thanks guys for the claification.

adamp87

It's not reported to any CRA so in that respect it doesn't matter, however if you are applying with a bank that you bank with for a Credit Card, sometimes they take your account activity or average balance into account for their internal 'score. I think HSBC is one that does this.