Don't understand how credit score works?

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  • gionnetto
    gionnetto Posts: 234 Forumite
    First Anniversary First Post I've been Money Tipped!
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    Nope. CRAs can't and won't have the same info, as some lenders report only to 1-2. Hence the question.
    Your cholesterol levels are not seen, or used, by your heart and arteries, so ignore it.
    :eek:.
  • [Deleted User]
    [Deleted User] Posts: 0 Newbie
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    Hence what question?
  • gionnetto
    gionnetto Posts: 234 Forumite
    First Anniversary First Post I've been Money Tipped!
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    Lenders do use CRA scores however it isn't the same score consumers view. They use CRA scores and application info and factor them into behavioural scores such as Delphi (Experian), Insight (Equifax) and Gauge (Callcredit). Those scores differ for type of application and sectors.

    This does explain why, if you have a stronger score with one CRA (in my case, Experian), when you go through an eligibility check the lenders that show up with the strongest acceptance use such CRA to do a credit check.

    On the why my score didn't drop, not sure if it's because I hadn't applied for credit in one year, or because I was pre-approved for the card I applied for.
    Your cholesterol levels are not seen, or used, by your heart and arteries, so ignore it.
    :eek:.
  • [Deleted User]
    [Deleted User] Posts: 0 Newbie
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    They do not use the CRA scores. At all. Ever.

    Lenders have their own internal "scoring" systems that they use based on the data on your CRA files.
  • MEM62
    MEM62 Posts: 4,754 Forumite
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    gionnetto wrote: »
    Lenders do use CRA scores however it isn't the same score consumers view.

    No, lenders do not use the CRA's scores. The are provided with data (your credit history) by the CRA's and then make a lending decision based on their own criterion.

    The CRA's scores are nothing more than a marketing tool to try and convince you to sign up to their subscription services or a source of amusement for people that collect numbers. Nothing more, nothing less.
  • binaryuniverse
    binaryuniverse Posts: 906 Forumite
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    gionnetto wrote: »
    Lenders do use CRA scores however it isn't the same score consumers view.


    In a nutshell: don't bother obsessing about the score you see.
  • Pixie5740
    Pixie5740 Posts: 14,515 Forumite
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    You could try reading the sticky at the top of the board about what your credit score really means.
  • binaryuniverse
    binaryuniverse Posts: 906 Forumite
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    Well, maybe if the guide link didn't just handily redirect you to CreditClub.
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