CCJ question

mogsy1975lfc

Wrong !! The higher the score the better your credit file simple . Lower the score like a default , ccj , missed payments your score will drop to poor , that is why it is on there to give you an idea on what you need to change for it to rise simple. 
Why have a scoring system if they are not going to use it. Example CCJ gets added what is your score going to do ? Drop by -356 points …Lenders are going to accept you after that no SIMPLE

mogsy1975lfc

Lenders look at a high credit score so your creditworthiness , then your  lower risk .. Simple maths 

mogsy1975lfc

Clive you need to look it up .

mogsy1975lfc

Credit file scoring, commonly known as credit scoring, is a method used by lenders to evaluate an individual's creditworthiness based on their credit history. The score is derived from data contained in a person's credit report, which includes information such as:

1. **Payment History:** Records of on-time payments, late payments, and defaults on loans and credit cards.

2. **Credit Utilization:** The ratio of current credit card balances to credit limits.

3. **Length of Credit History:** How long the accounts have been open.

4. **Types of Credit:** A mix of credit accounts, such as credit cards, retail accounts, installment loans, finance company accounts, and mortgage loans.

5. **New Credit:** The number of recently opened accounts and inquiries into the credit file.

Different models exist for credit scoring, the most popular being FICO and VantageScore. These scores typically range from 300 to 850, with higher scores indicating better creditworthiness. Lenders use these scores to make decisions on whether to approve credit applications and to determine the terms of the credit, such as interest rates and credit limits.

A higher credit score can lead to better loan terms, while a lower score might result in higher interest rates or denial of credit. It's important for individuals to regularly check their credit reports to ensure accuracy and to take steps to improve their credit score if needed.

mogsy1975lfc

Credit scoring in the UK involves evaluating an individual's creditworthiness based on their financial history and behavior. Here are the key elements of credit scoring in the UK:

1. **Credit Reference Agencies**: The main credit reference agencies (CRAs) in the UK are Experian, Equifax, and TransUnion. These agencies collect and store financial data about individuals and provide credit reports and scores to lenders.

2. **Credit Report**: This is a detailed record of your credit history, including information about your current and past credit accounts, payment history, outstanding debts, and other relevant data such as electoral roll information, financial associations, and public records (like bankruptcies and County Court Judgments).

3. **Credit Score**: Each CRA calculates a credit score based on the information in your credit report. Scores range typically from 0 to 999 (Experian), 0 to 710 (Equifax), and 0 to 710 (TransUnion). Higher scores indicate better creditworthiness.

4. **Factors Affecting Credit Score**:

   - **Payment History**: Timely payments on credit accounts positively affect your score.

   - **Credit Utilization**: The proportion of available credit you're using. Lower utilization generally improves your score.

   - **Credit History Length**: A longer credit history can enhance your score.

   - **New Credit**: Frequent applications for new credit can lower your score.

   - **Types of Credit**: A mix of different types of credit (e.g., credit cards, loans, mortgages) can positively impact your score.

5. **Improving Your Credit Score**:

   - **Pay Bills on Time**: Consistently paying bills by the due date is crucial.

   - **Reduce Debt**: Keeping credit card balances low can improve your credit utilization ratio.

   - **Avoid Multiple Credit Applications**: Spacing out credit applications can prevent negative impacts on your score.

   - **Check for Errors**: Regularly reviewing your credit report for inaccuracies and disputing them can prevent unnecessary score drops.

6. **Lender Criteria**: Different lenders may have their own criteria and scoring models in addition to those provided by CRAs. They use this combined data to decide whether to grant credit and on what terms.

Understanding your credit score and report is essential for managing your financial health and accessing credit when needed. Regularly checking your credit report and maintaining good credit habits can help you maintain or improve your credit score.

mogsy1975lfc

Clive i hope your score is not 0 because they wont offer you a penny . 

CliveOfIndia

mogsy1975lfc said:

Clive you need to look it up .

I do not need to look it up.  Given that I have worked in the financial sector for the majority of my working life, including several stints working directly in the credit risk areas, I think I know how it works.

Please, if you're going to dish out advice on this forum, make sure your information is correct.

CliveOfIndia

mogsy1975lfc said:

1. **Credit Reference Agencies**: The main credit reference agencies (CRAs) in the UK are Experian, Equifax, and TransUnion. These agencies collect and store financial data about individuals and provide credit reports and scores to lenders.

This is the nub of your misunderstanding.

Yes, the CRAs provide data to lenders.

No, they do not provide scores to lenders.

Actually, I'll qualify that.  A small number of lenders (usually the smaller companies) will use a score provided by the CRA.  But in those cases, it's a bespoke score, paid for by the lender, and tailored to their specific criteria.  But the majority of lenders just use the raw data provided by the CRA and use it to generate their own internal score.

The point being made is that the generic score you see on your CRA report has no bearing whatsoever on any lending decision - it's not even seen by a lender.

CliveOfIndia

mogsy1975lfc said:

Credit file scoring, commonly known as credit scoring, is a method used by lenders to evaluate an individual's creditworthiness based on their credit history. The score is derived from data contained in a person's credit report, which includes information such as:

1. **Payment History:** Records of on-time payments, late payments, and defaults on loans and credit cards.

2. **Credit Utilization:** The ratio of current credit card balances to credit limits.

3. **Length of Credit History:** How long the accounts have been open.

4. **Types of Credit:** A mix of credit accounts, such as credit cards, retail accounts, installment loans, finance company accounts, and mortgage loans.

5. **New Credit:** The number of recently opened accounts and inquiries into the credit file.

Different models exist for credit scoring, the most popular being FICO and VantageScore. These scores typically range from 300 to 850, with higher scores indicating better creditworthiness. Lenders use these scores to make decisions on whether to approve credit applications and to determine the terms of the credit, such as interest rates and credit limits.

A higher credit score can lead to better loan terms, while a lower score might result in higher interest rates or denial of credit. It's important for individuals to regularly check their credit reports to ensure accuracy and to take steps to improve their credit score if needed.

I think I may have realised the source of your confusion.  Judging from the spelling of "utilization" and the reference to FICO and VantageScore, I'm guessing you copied that extract from an American website?

If so, that would explain it.  In the USA the scores created by the reference agencies are indeed used directly by lenders.  That's not the case here in the UK.

Just goes to show you can't always trust everything you read on t'internet

Well, OK, you probably can trust some of it, but always verify the information before relying on it

mogsy1975lfc

When you work in these sectors you get manipulated by the way they run the business . Its not always correct . So you are totally wrong about scoring .