MSE credit club differs to Experian

7sefton

Hi all

Very confused as I’ve registered for both MSE credit club and Experian’s free credit score using the same details, and yet my credit score differs significantly between the two (poor on MSE, fair on Experian). And on ClearScore I’m 719.

is it normal or is there some error here?

how will I know what lenders will see me as?

Brie

They don't see the scores and they don't care about them. 

What they do see is your credit history.  This normally shows if you are registered to vote, if you have bank accounts with an overdraft and if so if you are using it, if you have phone contracts, paying monthly for insurance, how much is on each of your credit cards or store accounts.  Any missed payments will be obvious too as will any CCJs.

Additionally a lender with whom you have an account or card will also have their own in house info on how you manage those.  A different lender won't be able to see that level of detail.  

CliveOfIndia

7sefton said:

how will I know what lenders will see me as?

One thing is for certain - they won't be looking at your meaningless score.  Not least because they can't even see it.

All they're interested in is the raw data contained in your credit files, which they will use to assess you against their lending criteria.  The only important thing is to make sure that the data contained in all 3 of your files are factually accurate - you can safely ignore the gimmick score and the CRAs assessment of your credit-worthiness.

7sefton

I’m sorry but you’re wrong, lenders do score each applicant and this is directly correlated to the CRB scores. The idea that mainstream lenders comb through each individual credit file for the detail is wrong - the data is aggregated, and scored. So I am concerned about the differing scores. 

Themoneyshot

Don't you just love the internet?

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MorningcoffeeIV

7sefton said:

 lenders do score each applicant and this is directly correlated to the CRB scores. 

You got the first half of that correct and second wrong. There is no correlation between actual lender scores and the pretend CRA ones.

If there was a direct correlation, which CRA would it correlate too, given they are all giving you conflicting scores?

The 'combing' of files by lenders is done by computer to produce the score and automated. It's not the 1950s anymore.

CliveOfIndia

7sefton said:

I’m sorry but you’re wrong, lenders do score each applicant

Correct - they run your data through their computer algorithms and generate an internal credit score.  The lending criteria will differ from lender to lender, and are confidential and commercially sensitive, so you'll never know what the criteria are or what score they give you.  And because each lender will have different criteria, there cannot possibly be a one-size-fits-all score.

7sefton said:

this is directly correlated to the CRB scores.

Your credit-worthiness has nothing at all to do with the Criminal Records Bureau.  If you meant the Credit Reference Agencies then you're incorrect, I'm afraid - the internal score generated by a lender has no connection with the generic score given by the CRA.

7sefton said:

The idea that mainstream lenders comb through each individual credit file for the detail is wrong

Actually this is exactly what they do.  Some lenders will check all 3 CRAs, some may only check 1 or 2.  But yes, they feed all of the relevant data into their systems and assess you against their lending criteria.  No, it's not some clerk manually looking through each application, it's all computerised, but assessing the data contained within your credit file is exactly what they do.

55ryan

7sefton said:

I’m sorry but you’re wrong, lenders do score each applicant and this is directly correlated to the CRB scores. The idea that mainstream lenders comb through each individual credit file for the detail is wrong - the data is aggregated, and scored. So I am concerned about the differing scores. 

I've worked in the banking industry as have a couple of my exes in different banks, we never saw Credit Reference Agency scores. We had our own scoring system.  Entry level staff would just see computer says yes or no.

CRA's want you to get a credit card as they get a fee if you apply for one through them. But they have no real idea of you being accepted for anything anymore than your next door neighbour or my dog.

Some say scores should be used as a guide...yes and no. If we weren't taking on any more commitment that month then it wouldn't matter what score you had/what your credit record was like. 

The financial institution themselves will be the ones who say yes or no. No one else.

As for the discrepancy in your 'score'. If the record is the same ie credit cards/loans etc and it all matches up by date...nothing to worry about.