Clearscore app reporting score of 1000/1000

DocQuincy

When Clearscore was out of 700 I had a score of something like 576/700. Since the app updated to score out of 1000 it has always given me the highest score possible score: 1000/1000.

I thought they were keeping the proportional score the same so I was expecting a value of around 820 under the new system. Is this a mistake or have they completely overhauled the criteria too?

Thanks.

[Deleted User]

It's not so much overhauled as just continually vague. 

As long you have a score, thus indicating they don't believe you're dead, it doesn't matter what it is.

DocQuincy

Thanks, I didn't realise it was so meaningless. I can't say I use it much other than to make sure nothing erroneous is reported on there.

Ebe_Scrooge

Deleted_User said:

As long you have a score, thus indicating they don't believe you're dead

This made me chuckle

OP, since the score is meaningless it really doesn't matter what it is.  In fact, the situation you describe really just reinforces just how meaningless it is.

DocQuincy

Thanks, I never knew that. I thought it was a credible reflection of what creditors use. I'm assuming then it's just a way for the top-level credit agency to sell loans, etc.

Ebe_Scrooge

DocQuincy said:

Thanks, I never knew that. I thought it was a credible reflection of what creditors use. I'm assuming then it's just a way for the top-level credit agency to sell loans, etc.

No, it's just a marketing gimmick.  Remember that the agencies don't sell loans, credit cards or anything else.  They do like to try and sell you things to increase your score, and convince you that your score is the be-all-and-end-all.  Sadly, the only person that sees your score is you - when a lender looks at your file, all they see is the data contained within it.  If anything, your score simply indicates stability - it will drop in response to any change in your credit situation, whether good or bad, and will gradually rise over a period of stability.  That's about all that can be said about it.

The agencies do provide a valuable service to lenders by collating data about your credit status (what accounts you hold, what credit you have available, whether you've ever defaulted, your address history, etc. etc.).  Lenders pay them to access this data - that's how the CRAs make their money.

A common cause of confusion is the term "credit scoring".  Lenders do credit score you - internally.  They take the data provided by the CRA, feed it into their own internal systems, which then spit out a score.  Based on that, they'll decide whether or not to lend to you, how much, and at what rate.

Their internal scoring criteria are very complex, very different from one lender to another, confidential and commercially sensitive.  For that reason if nothing else, there cannot possibly be a "one-size-fits-all" score - each lender will have different criteria and will apply different weightings to each different factor.

DocQuincy

That's really interesting, thanks!

PRAISETHESUN

The score is a marketing gimmick designed to get consumers to buy services to improve it, or take out credit products through services the CRAs get a commission for recommending. It's never seen by lenders, and has no relevance in lending decisions. The fact Clearscore can change their criteria on a whim like this, just reinforces how meaningless it is.

As long as the data on your files is correct, then that's the main bit. The score number jumps around for many reasons (or none at all at times) so you really need to check the data in the report itself, rather than just assume that a change in the score means something good/bad has happened.

Carrot007

Ebe_Scrooge said:

A common cause of confusion is the term "credit scoring".  Lenders do credit score you - internally.  They take the data provided by the CRA, feed it into their own internal systems, which then spit out a score.  Based on that, they'll decide whether or not to lend to you, how much, and at what rate.

I know you all like to put this out without thinking but the lenders do not all internally credit score, they often buy a score from say experian. Of course it is still not the score you see if you  use experian but it certainly is provided by them. It's called outsourcing and has been going on for decades ;-) Maybe update your copy/pasta.

Ebe_Scrooge

Carrot007 said:

Ebe_Scrooge said:

A common cause of confusion is the term "credit scoring".  Lenders do credit score you - internally.  They take the data provided by the CRA, feed it into their own internal systems, which then spit out a score.  Based on that, they'll decide whether or not to lend to you, how much, and at what rate.

I know you all like to put this out without thinking but the lenders do not all internally credit score, they often buy a score from say experian. Of course it is still not the score you see if you  use experian but it certainly is provided by them. It's called outsourcing and has been going on for decades ;-) Maybe update your copy/pasta.

OK, fair point.  The majority of large banks (certainly all those I've worked for over the years) do have internal scoring systems.  Yes, some (usually smaller or newer) lenders will buy in tailored scores.  And you're right - if they do buy in a score, it's tailored to their requirements and is very different to the generic score seen by you and I.

mcpitman

Carrot007 said:

Ebe_Scrooge said:

A common cause of confusion is the term "credit scoring".  Lenders do credit score you - internally.  They take the data provided by the CRA, feed it into their own internal systems, which then spit out a score.  Based on that, they'll decide whether or not to lend to you, how much, and at what rate.

I know you all like to put this out without thinking but the lenders do not all internally credit score, they often buy a score from say experian. Of course it is still not the score you see if you  use experian but it certainly is provided by them. It's called outsourcing and has been going on for decades ;-) Maybe update your copy/pasta.

True, people like Experian/Equifax etc do provide the platform and "scorecard" to lenders.

But that score is built and specified by the lender themselves (or their Credit Risk dept) and that "score" is not necessarily a numerical value, nor does it work in the same way as the public score as it considers affordability metrics too.

I know of at least four major lenders where the lender "grades" the applicant from A-F and interbands scores of 1-3 within that.