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    • CLAPTON
    • By CLAPTON 19th Feb 09, 10:48 AM
    • 41,650 Posts
    • 30,691 Thanks
    CLAPTON
    • #2
    • 19th Feb 09, 10:48 AM
    • #2
    • 19th Feb 09, 10:48 AM
    well, what does your credit file show?
    do you already have a credit card?
  • wkitching
    • #3
    • 19th Feb 09, 10:54 AM
    • #3
    • 19th Feb 09, 10:54 AM
    I believe credit scores are important. I'm not very educated on the subject i'm affraid. I have two nearly maxed out credit cards owing 2k in total.. i'm paying them off next month, clearing this will improve my credit score, if so by how much, 50-100 points, or more?

    Kind regards, Wayne
    • sarahs999
    • By sarahs999 19th Feb 09, 10:55 AM
    • 3,831 Posts
    • 9,475 Thanks
    sarahs999
    • #4
    • 19th Feb 09, 10:55 AM
    • #4
    • 19th Feb 09, 10:55 AM
    Did the report not suggest anything you could do to improve your score?

    Teh reason people suggest credit scores are unimportant is that
    1. each company scores differently
    2. it's only an internal score - the way that a credit card company scores you mightbe completely different.

    It's only a guide.

    ARe you on the electoral roll? Do you have a cc already? Evere missed a pyament for anything? Any court judgements against you?
    Debt cleared! 13,128 0!!!
    Saving for maternity leave: 3,300/3500
    'Eat food. Not too much. Mostly plants.' Michael Pollan
    • nzseries1
    • By nzseries1 19th Feb 09, 11:37 AM
    • 2,144 Posts
    • 1,851 Thanks
    nzseries1
    • #5
    • 19th Feb 09, 11:37 AM
    • #5
    • 19th Feb 09, 11:37 AM
    Start by reading the article on Credit Scores on this site:
    http://www.moneysavingexpert.com/banking/credit-rating-credit-score
    It goes into this subject in much detail.
    You're spelling is effecting me so much. Im trying not to be phased by it but your all making me loose my mind on mass!! My head is loosing it's hair. I'm going to take myself off the electoral role like I should of done ages ago and move to the Caribean. I already brought my plane ticket, all be it a refundable 1.
    • Paul_Herring
    • By Paul_Herring 19th Feb 09, 11:42 AM
    • 6,871 Posts
    • 3,552 Thanks
    Paul_Herring
    • #6
    • 19th Feb 09, 11:42 AM
    • #6
    • 19th Feb 09, 11:42 AM
    'Credit Scores' as supplied sold are at best[1] only a general guideline to your credit worthiness, and at worst a cynical ploy to extract money from those that don't know exactly what they're buying.

    The actual number supplied by (say Equifax) is only useful if they [Equifax] actually supplied credit (they don't.)

    Sadly, the algorithm/formulae [Equifax] use to determine the number they give you uses different criteria to what (say) Amex, Barclaycard, or your local mortgage lender may look at.

    For example Equifax may give a higher positive emphasis on having a low proportion of debt in relation to the amount of credit you hold, whereas Amex may give a higher negative emphasis for exactly the same reason.

    Some things are generally seen as 'common ground' (presence on the electoral roll, not too many searches in the recent past, evidence of regular income for example,) but are by no means set in stone, nor are the weightings likely to be the same.

    For obvious reasons
    1) The proper credit suppliers don't divulge their formulae to stop gaming of the system
    2) If Equifax were to start offering credit, then I'm sure that either they'd stop giving selling you your 'credit score' or (more likely) would have in the small print something to the effect that your 'credit score' would have little relationship to whether they'd actually supply you with credit.

    [1] Edit 2011/2/16:
    It would seem I omitted the fact that they don't/can't even take into account all the information lenders use, so they cannot give an accurate score. See a the posts from an Experian representative replying on: How is my credit score so low? (Things like whether you have a job; what your income is, etc.)
    Last edited by Paul_Herring; 23-03-2011 at 9:56 PM.
    Conjugating the verb 'to be":
    -o I am humble -o You are attention seeking -o She is Nadine Dorries
  • bertieo
    • #7
    • 19th Feb 09, 6:17 PM
    • #7
    • 19th Feb 09, 6:17 PM
    well, what does your credit file show?
    do you already have a credit card?
    Originally posted by CLAPTON
    Yes it does show credit card records. All my payments are on time. I've always been very careful not to miss any payments. That's why I could not understand why my credit score is not good.
  • djwolf
    • #8
    • 19th Feb 09, 6:24 PM
    • #8
    • 19th Feb 09, 6:24 PM
    Good post. I've never had a problem getting a loan or credit card but I never seem to get their best APR rates. I wonder if it's because I'm not a homeowner.

    I'm interested to know how much it affects your rating each time you apply for new credit. Say you applied for 3 or 4 separate loans within a week, is that likely to make the score drop considerably or not? I'm talking about only applying and not actually signing up.
    • Paul_Herring
    • By Paul_Herring 19th Feb 09, 7:23 PM
    • 6,871 Posts
    • 3,552 Thanks
    Paul_Herring
    • #9
    • 19th Feb 09, 7:23 PM
    • #9
    • 19th Feb 09, 7:23 PM
    Say you applied for 3 or 4 separate loans within a week, is that likely to make the score drop considerably or not?
    It depends.

    Some credit providers may place a high negative weighting on more than X credit searches in the past Y months (for varying values of X and Y,) some may have a sliding scale for any searches, some may not even look at that aspect of your history (though this latter is unlikely.)
    Conjugating the verb 'to be":
    -o I am humble -o You are attention seeking -o She is Nadine Dorries
  • bertieo
    Good post. I've never had a problem getting a loan or credit card but I never seem to get their best APR rates. I wonder if it's because I'm not a homeowner.

    I'm interested to know how much it affects your rating each time you apply for new credit. Say you applied for 3 or 4 separate loans within a week, is that likely to make the score drop considerably or not? I'm talking about only applying and not actually signing up.
    Originally posted by djwolf
    Have you seen your own credit report? If you are not getting the best rates it may not be because you are not a home owner. Could there be something else on your report. My score was low and I am a home owner. But I couldn't see what the problem was with my report.
    • Paul_Herring
    • By Paul_Herring 20th Feb 09, 8:52 AM
    • 6,871 Posts
    • 3,552 Thanks
    Paul_Herring
    If you are not getting the best rates it may not be because you are not a home owner.
    Unlikely that's the sole reason (if it is a reason at all.)

    For anyone who wants an indepth view on credit scoring, you could do worse than read http://stoozing.com/g_score.php - but ignore the stoozing slant to the article, unless that's genuinely why you want more credit.
    Last edited by Paul_Herring; 13-06-2010 at 4:29 PM. Reason: Fixed URL
    Conjugating the verb 'to be":
    -o I am humble -o You are attention seeking -o She is Nadine Dorries
    • nomoneytoday
    • By nomoneytoday 20th Feb 09, 10:46 AM
    • 4,765 Posts
    • 2,882 Thanks
    nomoneytoday
    Every lender uses their own secret scores, tailored to their lending profile.

    If they released the formulae it would cause many people to massage their applications.
  • bertieo
    What kind of data could massage the application? You can't change what the lender will see about you on your credit report so wont that practically limit how much you can massage some of the important information they use to credit score you?
    • Paul_Herring
    • By Paul_Herring 20th Feb 09, 7:08 PM
    • 6,871 Posts
    • 3,552 Thanks
    Paul_Herring
    What kind of data could massage the application?
    Originally posted by bertieo
    • Where 'I' live, (hello students!)
    • How long I've had my job (that I've just been fired from left of my own violition.)
    • That credit card that is reported to the firm that isn't the one you're looking at. Chosen because I know they don't report to that firm.
    You can't change what the lender will see about you on your credit report so wont that practically limit how much you can massage some of the important information they use to credit score you?
    Your comment assumes that asking one CRA gives a 'global view' of a prospective customer. It doesn't.

    For better (privacy/DPA) or worse (erm.. same reasons.) the CRA's don't share info. The companies using them may choose to share with more than one, but they don't have to, and once that information is there, it cannot be passed between the CRAs.
    Conjugating the verb 'to be":
    -o I am humble -o You are attention seeking -o She is Nadine Dorries
  • bertieo
    • Where 'I' live, (hello students!)
    • How long I've had my job (that I've just been fired from left of my own violition.)
    • That credit card that is reported to the firm that isn't the one you're looking at. Chosen because I know they don't report to that firm.
    Originally posted by Paul_Herring
    It sounds like you know how it all works, but surely if you try to say you live somewhere you don't live, then wouldn't that count against you because your credit report won't confirm you on the voters roll?

    As it is, I am on the voters roll and I thought my credit report looked fine, so I can't see why my credit score was low. It may be that lenders use their own credit score, but it is still concerning to see a low credit score.
  • Porkbell
    if you try to say you live somewhere you don't live, then wouldn't that count against you because your credit report won't confirm you on the voters roll?

    As it is, I am on the voters roll and I thought my credit report looked fine, so I can't see why my credit score was low. It may be that lenders use their own credit score, but it is still concerning to see a low credit score.
    Originally posted by bertieo
    Yes the voters roll information is shown on your credit report so I guess it would catch you out if you tried to give a wrong address. It could be that credit rating agencies include demographic profiling of postcodes for example, but I don't know if that could affect your credit score.
  • bertieo
    I didn't think that demographics would be part of your credit score. Are there such things as credit 'black spots' e.g. some postcodes are known to have a higher proportion of defaults? If that was the case then more affluent addresses would score higher than less affluent areas...
    • Paul_Herring
    • By Paul_Herring 23rd Feb 09, 4:12 PM
    • 6,871 Posts
    • 3,552 Thanks
    Paul_Herring
    e.g. some postcodes are known to have a higher proportion of defaults?
    No, but some postcodes are known to have terraced houses, and others are known to have detached houses, which can imply a lot about the average person living there.
    Conjugating the verb 'to be":
    -o I am humble -o You are attention seeking -o She is Nadine Dorries
  • rayw
    Does this mean that credit rating agencies use demographic profiling to tell lenders what type of area you live in? Is this so lenders can see whether the rest of the information on your application form matches with where you live, e.g. what you claim to earn or your occupation is plausible for where you live? So they factor in where you live into your credit score?

    I better move!
    • Snooze
    • By Snooze 23rd Feb 09, 6:40 PM
    • 1,946 Posts
    • 3,437 Thanks
    Snooze
    No, but some postcodes are known to have terraced houses, and others are known to have detached houses, which can imply a lot about the average person living there.
    Originally posted by Paul_Herring
    Yep, it's called your ACORN rating and plays a part in your credit score.

    http://www.caci.co.uk/acorn/pclookup.asp

    Rob
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