Will opening a second current account harm my credit score?

phillw

Deleted_User said:
The credit "score" is 100% entertainment, it's a gimmick and is never used by lenders or even seen by them. It fluctuates a lot to tempt people to buy into the "improvement" services they offer.

It's your opinion that it's entertainment and you are entitled to your opinion, but I am entitled to point out that it's wrong and I've given my reasons why.

I have never seen mine fluctuate to tempt me to buy anything, it's changed based on how many applications for credit I've made. Which is the kind of thing a lender will look at too.

I figure you don't pay attention to yours, so I'm intrigued how you managed to work out their secret algorithm (my guess is you haven't).

[Deleted User]

phillw said:

Deleted_User said:
The credit "score" is 100% entertainment, it's a gimmick and is never used by lenders or even seen by them. It fluctuates a lot to tempt people to buy into the "improvement" services they offer.

It's your opinion that it's entertainment and you are entitled to your opinion, but I am entitled to point out that it's wrong and I've given my reasons why.

I have never seen mine fluctuate to tempt me to buy anything, it's changed based on how many applications for credit I've made. Which is the kind of thing a lender will look at too.

I figure you don't pay attention to yours, so I'm intrigued how you managed to work out their secret algorithm (my guess is you haven't).

Agreed credit score is not just for 'entertainment purposes' lol

MrFrugalFever

Deleted_User said:

phillw said:

Deleted_User said:
The credit "score" is 100% entertainment, it's a gimmick and is never used by lenders or even seen by them. It fluctuates a lot to tempt people to buy into the "improvement" services they offer.

It's your opinion that it's entertainment and you are entitled to your opinion, but I am entitled to point out that it's wrong and I've given my reasons why.

I have never seen mine fluctuate to tempt me to buy anything, it's changed based on how many applications for credit I've made. Which is the kind of thing a lender will look at too.

I figure you don't pay attention to yours, so I'm intrigued how you managed to work out their secret algorithm (my guess is you haven't).

Agreed credit score is not just for 'entertainment purposes' lol

Certainly entertains me!
’Based on your score you’re likely to be approved for 8 credit cards from providers like these’….Aqua, CapitalOne. Marbles, Ocean…all the ‘bad credit, credit cards’. 

‘Based on your score you’re likely to be approved for several loans’…all of which are 30% Apr +….

Reality….
I’ve been approved and opened a Zopa CC at 15.3%APR & £5k limit, provisionally approved on Barclaycard Rewards card and NatWest Loan of £7,550 (albeit at 16.9% which I politely declined).

So if I was going off of my ‘score’ and the credit brokers advice alone I would have ended up with higher interest rated CC’s / loans. Gimmick indeed.

[Deleted User]

phillw said:

Deleted_User said:
The credit "score" is 100% entertainment, it's a gimmick and is never used by lenders or even seen by them. It fluctuates a lot to tempt people to buy into the "improvement" services they offer.

It's your opinion that it's entertainment and you are entitled to your opinion, but I am entitled to point out that it's wrong and I've given my reasons why.

I have never seen mine fluctuate to tempt me to buy anything, it's changed based on how many applications for credit I've made. Which is the kind of thing a lender will look at too.

I figure you don't pay attention to yours, so I'm intrigued how you managed to work out their secret algorithm (my guess is you haven't).

You're free to disagree but as even the CRAs themselves tell you lenders never see it and it's never used in any lending decision; let alone every other finance site with any knowledge, you can have this as the hill you plant your flag on

Why bring in strawman arguments? I never claimed to know what their calculation process is. However, I can tell you for a fact that EVERY lender uses their own scoring system (either in house or by buying in a system from the CRAs configured how they want). If people know how the scoring from lenders worked, they would fiddle their records to optimise scoring processes. I can also tell you that if you look at say the US system, where credit scores do matter, they explain how the scores work in a fair amount of depth.

At the end of the day, you're free to disagree with me, with the CRAs, with MSE themselves, but you still wouldn't be correct.

[Deleted User]

Deleted_User said:

phillw said:

Deleted_User said:
The credit "score" is 100% entertainment, it's a gimmick and is never used by lenders or even seen by them. It fluctuates a lot to tempt people to buy into the "improvement" services they offer.

It's your opinion that it's entertainment and you are entitled to your opinion, but I am entitled to point out that it's wrong and I've given my reasons why.

I have never seen mine fluctuate to tempt me to buy anything, it's changed based on how many applications for credit I've made. Which is the kind of thing a lender will look at too.

I figure you don't pay attention to yours, so I'm intrigued how you managed to work out their secret algorithm (my guess is you haven't).

Agreed credit score is not just for 'entertainment purposes' lol

1. Lenders never see your score
2. No decision on lending is ever made based on your score

Therefore, what value does the score have other than entertainment? It certainly isn't of any use in identifying whether you will get credit or not given that lenders never see it.

55ryan

Deleted_User said:

Deleted_User said:

phillw said:

Deleted_User said:
The credit "score" is 100% entertainment, it's a gimmick and is never used by lenders or even seen by them. It fluctuates a lot to tempt people to buy into the "improvement" services they offer.

It's your opinion that it's entertainment and you are entitled to your opinion, but I am entitled to point out that it's wrong and I've given my reasons why.

I have never seen mine fluctuate to tempt me to buy anything, it's changed based on how many applications for credit I've made. Which is the kind of thing a lender will look at too.

I figure you don't pay attention to yours, so I'm intrigued how you managed to work out their secret algorithm (my guess is you haven't).

Agreed credit score is not just for 'entertainment purposes' lol

1. Lenders never see your score
2. No decision on lending is ever made based on your score

Therefore, what value does the score have other than entertainment? It certainly isn't of any use in identifying whether you will get credit or not given that lenders never see it.

I've worked in this area. We never had access to the 'score'. Always based on internal logarithms and on occasion human decision making. You are correct. 

Vinknut

Those pesky logarithms.

phillw

Deleted_User said:
You're free to disagree but as even the CRAs themselves tell you lenders never see it and it's never used in any lending decision; let alone every other finance site with any knowledge, you can have this as the hill you plant your flag on

Why bring in strawman arguments? I never claimed to know what their calculation process is. However, I can tell you for a fact that EVERY lender uses their own scoring system (either in house or by buying in a system from the CRAs configured how they want). If people know how the scoring from lenders worked, they would fiddle their records to optimise scoring processes. I can also tell you that if you look at say the US system, where credit scores do matter, they explain how the scores work in a fair amount of depth.

At the end of the day, you're free to disagree with me, with the CRAs, with MSE themselves, but you still wouldn't be correct.

I've never seen the CRA or MSE say the credit score is for entertainment & so I am not disagreeing with them. So you can end your appeal to authority logical fallacy right there.

You've also made a fallacy of exclusive premise. Just because lenders don't see the credit score, doesn't mean it's for entertainment.

I know for a fact all the lenders have their own scoring algorithms. I never claimed otherwise & it STILL doesn't mean that the CRA's credit score that only you see is for entertainment.

xgingerx

Whilst i agree the credit scores given are a gimmick from my experience there is some truth and correlation from the score and the ability to obtain credit or not. So i would look at it and use it only as a good indication / guideline as to whether you may or may not get approved. ie If your credit score is showing as very Poor then regardless what the score says "Very Poor" wont be far from the mark and you will unlikely get sensible or meaningful credit.

[Deleted User]

phillw said:

Deleted_User said:
You're free to disagree but as even the CRAs themselves tell you lenders never see it and it's never used in any lending decision; let alone every other finance site with any knowledge, you can have this as the hill you plant your flag on

Why bring in strawman arguments? I never claimed to know what their calculation process is. However, I can tell you for a fact that EVERY lender uses their own scoring system (either in house or by buying in a system from the CRAs configured how they want). If people know how the scoring from lenders worked, they would fiddle their records to optimise scoring processes. I can also tell you that if you look at say the US system, where credit scores do matter, they explain how the scores work in a fair amount of depth.

At the end of the day, you're free to disagree with me, with the CRAs, with MSE themselves, but you still wouldn't be correct.

I've never seen the CRA or MSE say the credit score is for entertainment & so I am not disagreeing with them. So you can end your appeal to authority logical fallacy right there.

You've also made a fallacy of exclusive premise. Just because lenders don't see the credit score, doesn't mean it's for entertainment.

I know for a fact all the lenders have their own scoring algorithms. I never claimed otherwise & it STILL doesn't mean that the CRA's credit score that only you see is for entertainment.

Strawman fallacy = check
Moving the goalposts fallacy = check

Appeal to authority fallacy = false
MSE link where they state the score is meaningless (and therefore entertainment only)

"Credit score - 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."

Experian link where they try and skirt around the score being meaningless 

"Your credit score gives you an idea of how companies may view you when you apply for credit."

So if it only gives you an idea and it's only how they may see you, then what use is it beyond novelty 

Still not provided any evidence that supports the argument that it is NOT for entertainment. I have already proved my case so now you're on the burden of proof fallacy? Cool. Blocked as not arguing in good faith.