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  • FIRST POST
    • MSE Helen S
    • By MSE Helen S 19th May 14, 5:51 PM
    • 75Posts
    • 44Thanks
    MSE Helen S
    What your credit score really means
    • #1
    • 19th May 14, 5:51 PM
    What your credit score really means 19th May 14 at 5:51 PM
    Hi!

    This is the discussion thread for the



    Click reply below to discuss. If you haven’t already, join the forum to reply.


    Thanks folks,
    Last edited by MSE Tine; 09-01-2019 at 2:57 PM.
Page 17
    • DCFC79
    • By DCFC79 4th Jul 19, 7:07 AM
    • 35,220 Posts
    • 22,242 Thanks
    DCFC79
    Your credit score combines everything in your credit report into a tidy, three-digit number that serves as a gauge for lenders as to where your credit stands and serves to calculate risk at a point in time. It can determine whether you are approved for a credit card or a big loan such as a car or home, as well as how much you’ll pay for these things. While your score fluctuates depending on what’s happening in your financial life, the higher your score the better.
    Credit scores range from 300 to 850. Good to excellent credit scores are typically 700 and above. When you're in this range, you are considered a low risk for defaulting on loans as well as scoring high on the responsibility chart. Fair credit means your score is between 660 and 700
    Credit scores are used by lenders, including banks providing mortgage loans, credit card companies, and even car dealerships financing auto purchases, to make decisions about whether or not to offer your credit and what the terms of the offer (such as the interest rate or down payment) will be. There are many different types of credit scores. FICO® Scores* and scores by Vantage Score are two of the most common types of credit scores, but industry-specific scores also exist.
    Originally posted by peterradcliffe
    Except credit scores arent seen by lenders ?
    Only you can see your own score, well in the uk anyway, US might be different.
    Last edited by DCFC79; 04-07-2019 at 7:10 AM.
    • msallen
    • By msallen 4th Jul 19, 11:58 AM
    • 1,093 Posts
    • 1,367 Thanks
    msallen
    Your credit score combines everything in your credit report into a tidy, three-digit number that serves as a gauge for lenders as to where your credit stands and serves to calculate risk at a point in time. It can determine whether you are approved for a credit card or a big loan such as a car or home, as well as how much you’ll pay for these things. While your score fluctuates depending on what’s happening in your financial life, the higher your score the better.
    Credit scores range from 300 to 850. Good to excellent credit scores are typically 700 and above. When you're in this range, you are considered a low risk for defaulting on loans as well as scoring high on the responsibility chart. Fair credit means your score is between 660 and 700
    Credit scores are used by lenders, including banks providing mortgage loans, credit card companies, and even car dealerships financing auto purchases, to make decisions about whether or not to offer your credit and what the terms of the offer (such as the interest rate or down payment) will be. There are many different types of credit scores. FICO® Scores* and scores by Vantage Score are two of the most common types of credit scores, but industry-specific scores also exist.
    Originally posted by peterradcliffe
    Utter drivel.
    Different CRAs give their scores out of different ranges which on its own invalidates your claim as to what a particular score signifies, before we even start on the meaningfulness (or otherwise) of the score itself.
    • Ebe Scrooge
    • By Ebe Scrooge 4th Jul 19, 12:45 PM
    • 4,420 Posts
    • 3,960 Thanks
    Ebe Scrooge
    Your credit score combines everything in your credit report into a tidy, three-digit number that serves as a gauge for lenders as to where your credit stands and serves to calculate risk at a point in time. It can determine whether you are approved for a credit card or a big loan such as a car or home, as well as how much you’ll pay for these things. While your score fluctuates depending on what’s happening in your financial life, the higher your score the better.
    Credit scores range from 300 to 850. Good to excellent credit scores are typically 700 and above. When you're in this range, you are considered a low risk for defaulting on loans as well as scoring high on the responsibility chart. Fair credit means your score is between 660 and 700
    Credit scores are used by lenders, including banks providing mortgage loans, credit card companies, and even car dealerships financing auto purchases, to make decisions about whether or not to offer your credit and what the terms of the offer (such as the interest rate or down payment) will be. There are many different types of credit scores. FICO® Scores* and scores by Vantage Score are two of the most common types of credit scores, but industry-specific scores also exist.
    Originally posted by peterradcliffe
    Since he's referring to American credit reference agencies and "auto purchases" I'm guessing he should be out enjoying the 4th July celebrations instead of posting on here. In the USA the credit scores do mean something; in the UK they are nothing more than a meaningless marketing gimmick, and have no bearing at all on someone's ability to obtain credit.
    I may not know much about art, but I know what I like.
    • DCFC79
    • By DCFC79 4th Jul 19, 7:15 PM
    • 35,220 Posts
    • 22,242 Thanks
    DCFC79
    Since he's referring to American credit reference agencies and "auto purchases" I'm guessing he should be out enjoying the 4th July celebrations instead of posting on here. In the USA the credit scores do mean something; in the UK they are nothing more than a meaningless marketing gimmick, and have no bearing at all on someone's ability to obtain credit.
    Originally posted by Ebe Scrooge
    I agree that Mr Radcliffe should be out celebrating the 4th of July.
    • TonyD74
    • By TonyD74 20th Sep 19, 9:44 AM
    • 7 Posts
    • 4 Thanks
    TonyD74
    I've been working on trying to get mine up for a while, but i'm using clearscore at the moment to track it, but it keeps showing 'placing too many applications' although I haven't applied for anything in like 2 years, I'm guessing its a fault in there system.
    • Gary_Dexter
    • By Gary_Dexter 20th Sep 19, 4:12 PM
    • 6,768 Posts
    • 4,523 Thanks
    Gary_Dexter
    I've been working on trying to get mine up for a while, but i'm using clearscore at the moment to track it, but it keeps showing 'placing too many applications' although I haven't applied for anything in like 2 years, I'm guessing its a fault in there system.
    Originally posted by TonyD74
    Trying to get your what up?
    I think you need pills for that, not a credit card...
    • Gary_Dexter
    • By Gary_Dexter 20th Sep 19, 4:13 PM
    • 6,768 Posts
    • 4,523 Thanks
    Gary_Dexter
    A credit score is a statistical number that evaluates a consumer's creditworthiness and is based on credit history. A person's credit score ranges from 300 to 850, and the higher the score, the more financially trustworthy a person is considered to be.
    Originally posted by pumicefluff
    It's really not and it really doesn't.

    Did you not read ANYTHING in this thread?
    • jamesd
    • By jamesd 20th Sep 19, 5:14 PM
    • 23,493 Posts
    • 15,830 Thanks
    jamesd
    It's really not and it really doesn't.
    Originally posted by Gary_Dexter
    It's most likely a spammer making a few posts to try to get around blocks on various things. Post text is exact copy of third sentence of https://www.investopedia.com/terms/c/credit_score.asp#targetText=A%20person's%20credit% 20score%20ranges,person%20is%20considered%20to%20b e.

    Easy enough to recognise and report such posts.
    • Graham1982
    • By Graham1982 26th Sep 19, 8:22 PM
    • 18 Posts
    • 6 Thanks
    Graham1982
    Hello:

    So in sum if I am reading this correctly:

    Pay your bills on time, don't have defaults, don't have massive credit to utilization ratios and apply for things such as new credit/mortgages etc without concerning yourself with the credit score from any of the suppliers.

    Whether you get accepted by X borrower doesn't mean you will get accepted by Y and neither borrower will possibly base this decision on your credit score?
    • Ben8282
    • By Ben8282 26th Sep 19, 8:26 PM
    • 3,879 Posts
    • 2,138 Thanks
    Ben8282
    Hello:

    So in sum if I am reading this correctly:

    Pay your bills on time, don't have defaults, don't have massive credit to utilization ratios and apply for things such as new credit/mortgages etc without concerning yourself with the credit score from any of the suppliers.

    Whether you get accepted by X borrower doesn't mean you will get accepted by Y and neither borrower will possibly base this decision on your credit score?
    Originally posted by Graham1982
    You are basically correct.
    • Gary_Dexter
    • By Gary_Dexter 27th Sep 19, 10:09 AM
    • 6,768 Posts
    • 4,523 Thanks
    Gary_Dexter
    Hello:

    So in sum if I am reading this correctly:

    Pay your bills on time, don't have defaults, don't have massive credit to utilization ratios and apply for things such as new credit/mortgages etc without concerning yourself with the credit score from any of the suppliers.

    Whether you get accepted by X borrower doesn't mean you will get accepted by Y and neither borrower will possibly base this decision on your credit score?
    Originally posted by Graham1982
    If you’ve read it correctly then you’d have seen your scores bears no factor in lending decisions whatsoever
    • WoodenIndian
    • By WoodenIndian 28th Sep 19, 10:37 PM
    • 4 Posts
    • 2 Thanks
    WoodenIndian
    I think a lot of the confusion is because how credit "score" and credit "rating" get interchanged so frequently. Compound that with the U.S. credit system and things can get confusing for some.

    I think this sums it up fairly well:
    "Your credit score
    The three credit reference agencies, Experian, TransUnion and Equifax, have individual ways of scoring you, meaning the numbers you see may be different for each one.

    Interestingly, lenders don't see this score at all - it's just for you. The score you see reflects what's actually in your file, which is what lenders will look through when you apply for a credit product."

    source: moneysavingexpert (dot) com/loans/credit-rating-credit-score

    Credit scores are BS in the UK (as far as lenders are concerned).
    • boo_star
    • By boo_star 28th Sep 19, 11:16 PM
    • 2,804 Posts
    • 2,156 Thanks
    boo_star
    I think a lot of the confusion is because how credit "score" and credit "rating" get interchanged so frequently. Compound that with the U.S. credit system and things can get confusing for some.

    I think this sums it up fairly well:
    "Your credit score
    The three credit reference agencies, Experian, TransUnion and Equifax, have individual ways of scoring you, meaning the numbers you see may be different for each one.

    Interestingly, lenders don't see this score at all - it's just for you. The score you see reflects what's actually in your file, which is what lenders will look through when you apply for a credit product."

    source: moneysavingexpert (dot) com/loans/credit-rating-credit-score

    Credit scores are BS in the UK (as far as lenders are concerned).
    Originally posted by WoodenIndian
    With all due respect you're just saying what the regulars on here have been saying for years.
    • Gary_Dexter
    • By Gary_Dexter 29th Sep 19, 11:18 AM
    • 6,768 Posts
    • 4,523 Thanks
    Gary_Dexter
    I think a lot of the confusion is because how credit "score" and credit "rating" get interchanged so frequently. Compound that with the U.S. credit system and things can get confusing for some.

    I think this sums it up fairly well:
    "Your credit score
    The three credit reference agencies, Experian, TransUnion and Equifax, have individual ways of scoring you, meaning the numbers you see may be different for each one.

    Interestingly, lenders don't see this score at all - it's just for you. The score you see reflects what's actually in your file, which is what lenders will look through when you apply for a credit product."

    source: moneysavingexpert (dot) com/loans/credit-rating-credit-score

    Credit scores are BS in the UK (as far as lenders are concerned).
    Originally posted by WoodenIndian
    Thanks for coming by and copy/pasting the MSE article
    • IvanDP
    • By IvanDP 29th Oct 19, 11:05 PM
    • 133 Posts
    • 59 Thanks
    IvanDP
    Interesting Read
    Thoroughly enjoyed reading this thread, and thought I may as well add my experience.


    I have never really taken much notice of credit scores, but I am signed up to Credit Club, purely for the purpose of being able to see my credit file without having to pay for it.

    I can confer what the more experienced posters on here have said about ignoring these scores and some of the so called advice that the likes of Clearscore, etc give you to "improve your score"

    A little background:

    I live in rented accommodation (tenancy in my partners name, not mine)
    I am not on the electoral register (personal choice)
    Car on PCP (£10,000 - £7,500 still outstanding)
    2 credit cards with £15,000 total credit limit (although always paid in full)
    Approximately £1500 paypal credit
    (used to purchase items we planned to buy anyway and 0%APR)
    Mobile phone contract
    Broadband contract
    2 current accounts (Nationwide and Starling) with combined £500 overdraft

    According to the so called credit scores, I was pretty unlikely to be able to obtain further credit.

    Yet...........
    In the last 6 months, I have applied for and got:
    American Express preferred rewards gold credit card
    Tandem cashback credit card
    Monzo current account with £300 overdraft
    Nat West current account with £200 overdraft (opened as a donor account for switch bonus)
    Club Lloyds current account with £300 overdraft (for £125 switching bonus)
    Nationwide FlexDirect account with £300 overdraft (only for the 5% interest)
    Traded in the car for a brand new one on new PCP

    So believe me, if you are not in a huge amount of debt, take the advice of the more experienced members of this forum and totally ignore whatever your so called "credit score" says.
    • noel1994
    • By noel1994 1st Nov 19, 8:33 AM
    • 1 Posts
    • 0 Thanks
    noel1994
    Wiping a payday loan from credit score
    Hi,

    I have a couple of payday loans currently in a complaint stage for irresponsible lending and now the companies (wonga, moneyshop, quickquid) are going into administration.

    Irresponsible lent loans can be wiped from a credit score. Is this still possible when a company goes into admin and shuts down? if so does anyone know how i do this?

    thanks
    • DCFC79
    • By DCFC79 1st Nov 19, 8:37 AM
    • 35,220 Posts
    • 22,242 Thanks
    DCFC79
    Hi,

    I have a couple of payday loans currently in a complaint stage for irresponsible lending and now the companies (wonga, moneyshop, quickquid) are going into administration.

    Irresponsible lent loans can be wiped from a credit score. Is this still possible when a company goes into admin and shuts down? if so does anyone know how i do this?

    thanks
    Originally posted by noel1994
    Credit history you mean right ?
    • zx81
    • By zx81 1st Nov 19, 8:37 AM
    • 24,048 Posts
    • 26,763 Thanks
    zx81
    You're after it being removed from your files. If you have agreement from those companies that the loans were mis sold and would be removed send that to the CRAs and ask them to remove them.
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