Credit scores and accounts

Daliah

Daliah said:

Deleted_User said:

Daliah said:

Your credit score is largely a meaningless indicator that lenders will ignore.

If you don't plan to apply for large credit (e.g. mortgage) in the next 6-12 months, any hard searches for current account applications don't matter. 

You can see on your credit files who performed a hard search, and when. 

To correct, it's an entirely meaningless number, no lenders ever see it, it's never used in any decision on lending. 

I would agree that it is never used in any decision on lending but I don't think it is true any longer that no lenders ever see it. Natwest and RBS, for instance, have gone to great length to update their app to show people their Transunion credit scores. Escapes me, though, why they do this.

Lloyds Banking Group (Lloyds, Halifax, BoS) also let you see your Transunion score and some related stuff, such as "Things to work on" - which in my case, and in their opinion, is the lack of a mortgage (as I paid it off many years ago). So not only is the score meaningless, their recommendations are even more so 🤣🤣🤣🤣

[Deleted User]

Daliah said:

Deleted_User said:

Daliah said:

Deleted_User said:

Daliah said:

Your credit score is largely a meaningless indicator that lenders will ignore.

If you don't plan to apply for large credit (e.g. mortgage) in the next 6-12 months, any hard searches for current account applications don't matter. 

You can see on your credit files who performed a hard search, and when. 

To correct, it's an entirely meaningless number, no lenders ever see it, it's never used in any decision on lending. 

I would agree that it is never used in any decision on lending but I don't think it is true any longer that no lenders ever see it. Natwest and RBS, for instance, have gone to great length to update their app to show people their Transunion credit scores. Escapes me, though, why they do this.

Their app showing you the free score is about responsible lending, the score is still irrelevant and lenders never see it

If you apply for an account with NatWest, the only score they see is the one on their internal system

They can see anything and everything you can see in the app.

OK if you want to argue semantics, they can see it but they never will as there is no point because they don't use it

[Deleted User]

Daliah said:

Deleted_User said:

Zaul22 said:

Vaguely relevant question though... what about account age?

The account age part of my report says 'moderate risk'. 
If I were to close my main lifetime bank account so my average account age went down from 11 years to probably 2-4 years, would that matter to anything?

Bank accounts that are not credit accounts (i.e. no overdraft) have no impact in the scheme of things, the average account age is irrelevant, all lenders care about is good credit history (paying bills on time) and you having some stability e.g. keeping an old credit card running and being on the electoral role for as long as possible ideally at one location

Account longevity does matter, if only as a minor factor, according to MSE, who say this on my credit file report:

Are MSE lending you money? Is Experian lending you money?

No - so who cares what they think? What matters is what the lender thinks

The screenshot literally tells you, in the same sentence, it's unlikely to have any effect. I have the exact same nonsense message on mine and it has not stopped me getting any credit in the last 6 years.

Stop obsessing over the fake reports, fake score and all the other nonsense that they are trying to push you to encourage you to take out the paid for service.

Lenders will score you based on the data on your file. You will never see that score or how it's calculated, so maintain a good credit history of borrowing and paying back responsibly, avoid missing/late payments and don't take on debt you can't afford

[Deleted User]

RG2015 said:

eastcorkram said:

@[Deleted User]

I've just signed up to clearscore for the first time ever. I can now see my meaningless score. I can't see anything about credit files though ?

Click on Reports and then Credit Report and scroll down to see your credit report which comprises the following.

Bank accounts
Credit cards
Mobile phone contract
Utility contracts
Credit searches
Linked people (eg joint accounts)
etc

You can do the same for Credit Karma and MSE Credit Club.

Also see details on the link below. Notice that MSE do not trash the concept of credit scores, although it does state that they are not that important.

https://www.moneysavingexpert.com/loans/credit-rating-credit-score/

MSE is designed to work for the lowest common denominator, they keep things simple and easy to understand. They talk about a credit score just so people can understand it, they don't talk about credit history etc

If you read your own link

Credit score (specifically from a credit reference agency)
As mentioned above, this is simply a view from one agency, which remember is not the decision maker on whether you'll get credit or not. Lenders use their own scoring systems.

RG2015

Deleted_User said:

RG2015 said:

eastcorkram said:

@[Deleted User]

I've just signed up to clearscore for the first time ever. I can now see my meaningless score. I can't see anything about credit files though ?

Click on Reports and then Credit Report and scroll down to see your credit report which comprises the following.

Bank accounts
Credit cards
Mobile phone contract
Utility contracts
Credit searches
Linked people (eg joint accounts)
etc

You can do the same for Credit Karma and MSE Credit Club.

Also see details on the link below. Notice that MSE do not trash the concept of credit scores, although it does state that they are not that important.

https://www.moneysavingexpert.com/loans/credit-rating-credit-score/

MSE is designed to work for the lowest common denominator, they keep things simple and easy to understand. They talk about a credit score just so people can understand it, they don't talk about credit history etc

If you read your own link

Credit score (specifically from a credit reference agency)
As mentioned above, this is simply a view from one agency, which remember is not the decision maker on whether you'll get credit or not. Lenders use their own scoring systems.

Are you suggesting that my post was unhelpful, misleading or in some way advocating the use or validity of credit scores?

All I said was that MSE don't trash the concept of credit scores, which is factually correct.

Are you saying that I am obliged to trash the concept of credit scores being useful and if I don't I am saying that they are useful?

Daliah

Deleted_User said:

Stop obsessing over the fake reports, fake score and all the other nonsense that they are trying to push you to encourage you to take out the paid for service.

I am not obsessing about anything.

I have never said lenders will use the CRA credit scores.

I have no idea why you get so worked up over mere facts.

RG2015

Deleted_User said:

Daliah said:

Deleted_User said:

Zaul22 said:

Vaguely relevant question though... what about account age?

The account age part of my report says 'moderate risk'. 
If I were to close my main lifetime bank account so my average account age went down from 11 years to probably 2-4 years, would that matter to anything?

Bank accounts that are not credit accounts (i.e. no overdraft) have no impact in the scheme of things, the average account age is irrelevant, all lenders care about is good credit history (paying bills on time) and you having some stability e.g. keeping an old credit card running and being on the electoral role for as long as possible ideally at one location

Account longevity does matter, if only as a minor factor, according to MSE, who say this on my credit file report:

Stop obsessing over the fake reports, fake score and all the other nonsense that they are trying to push you to encourage you to take out the paid for service.

Lenders will score you based on the data on your file. You will never see that score or how it's calculated, so maintain a good credit history of borrowing and paying back responsibly, avoid missing/late payments and don't take on debt you can't afford

I have just noticed your reference to “fake reports”

I am sure that you are not saying that the reports are fake.

Just for the benefit of inexperienced readers, your credit report is a genuine record of your credit history.

Marchitiello

Daliah said:

Deleted_User said:

Daliah said:

Your credit score is largely a meaningless indicator that lenders will ignore.

If you don't plan to apply for large credit (e.g. mortgage) in the next 6-12 months, any hard searches for current account applications don't matter. 

You can see on your credit files who performed a hard search, and when. 

To correct, it's an entirely meaningless number, no lenders ever see it, it's never used in any decision on lending. 

I would agree that it is never used in any decision on lending but I don't think it is true any longer that no lenders ever see it. Natwest and RBS, for instance, have gone to great length to update their app to show people their Transunion credit scores. Escapes me, though, why they do this.

The availability of credit score visibility has mainly been a marketing gimmick… Barclaycard did this years ago but then did not renew the agreement (I believe it was with Experian) and removed it from the app. Lloyds has also added this “feature” in their app. In all cases, as it was with Barclaycard, it is not a live update stored within the app, technically it is an API call to the credit agency which is done when the customer select the option on the app, so it is not something that the bank itself sees all the time nor is something that they use, albeit it can be an indication for users that something has changed within their credit file and they should  probably give it a good look, which means that many will then “buy” a copy of their credit file from the same agencies…