What your credit score really means
Options
Comments
-
taurustime wrote: »I've checked my credit scores on the 3 main UK sites. My ratings are 464/700 : 581/700 and 960/999. There appears to be no reason for these wide disparencies. Also, Martin commented that credit scoring agencies don't take salary into account. Neither do they take savings into account in their assessments. I was given a relatively small credit card limit despite having over 100x the limit in readily available cash savings.
Its not the 3 main sites but theres 3 agencies who lenders etc report too. Well for a start the agencies can rate you how they like, all that matters is your data is correct.0 -
The credit reference agencies just use the details supplied to them about amounts borrowed and payment record to calculate those scores. That's useful for identifying bad payers but not so good for distinguishing between degrees of good.taurustime wrote: »credit scoring agencies don't take salary into account. Neither do they take savings into account in their assessments. I was given a relatively small credit card limit despite having over 100x the limit in readily available cash savings.
When it comes to actual lending the lender will add in your income. Sometimes savings might be a factor but I don't remember being asked and they won't know about savings if they don't ask.
A low initial limit will often be increased once a year if you use the existing limit and never pay late.
You can also write to the firm with more information and ask for whatever higher limit you'd like. As policy some will always say no until you've been a customer for a while but others consider such requests.0 -
I think this is a big con, i get a request to join Experian direct, not via credit club it tells me my score is 757 which is poor/fair. I access my credit club which is also an Experian credit report where it tells me i have a very healthy 950 good. Two different scores by the same company. So i understand the different ratings from different companies, but from the same company? It is there purely to coerce consumers into getting credit cards. The whole thing is an absolute nonsense. By the way I don't need credit and have no personal axe to grind0
-
I think this is a big con, i get a request to join Experian direct, not via credit club it tells me my score is 757 which is poor/fair. I access my credit club which is also an Experian credit report where it tells me i have a very healthy 950 good. Two different scores by the same company. So i understand the different ratings from different companies, but from the same company? It is there purely to coerce consumers into getting credit cards. The whole thing is an absolute nonsense. By the way I don't need credit and have no personal axe to grind
Ignore the scores they are of no use, they aren't seen by lenders. All that matters is the data is correct that's all.0 -
Another great example of why scores are a load of rubbish.
Experian and Equifax have identical data on me.
Barclaycard seem to randomly update the report, not with the statement balance, but the random balance at various points.
Anyhow, latest update has by usage at 75% for that card. That equated to a 66 point drop on Experian, but a 24 point increase on Equifax. ???0 -
Correct - they won't update with the statement balance.
They'll update with whatever you balance is on the date they submit the data they hold on you to the CRA'S.0 -
I have recently subscribed to Experian and paying £15 for the privilege. I want to boost my credit rating after a period last year where I was unable to pay my credit card payments for 6months. At the end of this period I was fortunate to come into some money and I was able to pay the debt off in full. During this process I was under advice from a debt agency (I do not wish to disclose their name). I feel they ill advised me and did not help me at all. Experian, say my rating is poor, and before I had a very good rating (I had never missed a single payment in my life, believe me that is a long time).
Is there any way I am able to have this shortfall removed from my credit rating? The credit card & overdraft debt was with my old bank. I would be extremely grateful for your help. Thank you.0 -
Starlight7 wrote: »I have recently subscribed to Experian and paying £15 for the privilege.
I want to boost my credit rating after a period last year where I was unable to pay my credit card payments for 6months.
Is there any way I am able to have this shortfall removed from my credit rating?
There's no need to pay to view your credit file, it's available for free.
If you failed to pay your credit card for 6 months then your credit history will obviously reflect this.
You cannot remove this information from your file - it's factually correct. All you can do is work towards rebuilding your history - the simplest way is making sure you use credit responsibly, always making payment on time.
What advice did the debt agency give you that you feel was inappropriate ?0 -
Interesting!0
-
Why can't we individuals be shown our credit reports and score exactly as they would be shown to lenders? And similarly why can't the lenders see exactly what we see when we/they purchase a report from any CRA? And furthermore why can't the information commissioner enforce that CRAs show both lender and borrower the same information and/or scores?
Why do they complicate everything??? :mad:Yesterday is History
Tomorrow is a Mystery
Today is a GIFT from God and that is why it's called the PRESENT ..0
Categories
- All Categories
- 343.2K Banking & Borrowing
- 250.1K Reduce Debt & Boost Income
- 449.7K Spending & Discounts
- 235.3K Work, Benefits & Business
- 608K Mortgages, Homes & Bills
- 173.1K Life & Family
- 247.9K Travel & Transport
- 1.5M Hobbies & Leisure
- 15.9K Discuss & Feedback
- 15.1K Coronavirus Support Boards