Few Questions About Loan (Credit Score, Reason)
Comments
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Where's your citation for this?
You need citation ? Surely this is common sense !!!
Notice i say "will" and not "do" , and also i say "similar" and not "same"
I suspect you are being obtuse and know exactly what i mean
Defaults on account = score goes down
Good payment history = score goes up
etc
Come on !!0 -
I have to pipe up here ..
I see it banded about again and again on this forum that credit score from experian is meaningless.
I know where you are coming from
But i think this is false information as it is far from meaningless.I stand by my assection that the experian credit score, whilst not being a universal score used by lenders, does serve as a benchmark of how you are likely to be viewed by these potential lenders
It is meaningless on the basis that, nobody other that you sees it. Lenders do not use it and importantly, even the CRA's themselves cannot explain how it is derived. The truth is that it is a marketing tool that many have bought into used to promote the CRA's subscription services. To accept your argument that it is a benchmark the 'score' it would need to be consistently applied based on an individual's circumstances, and there is plenty of anecdotal evident on these forums to suggest that this is not the case, and also have some kind of reference point in order to have any kind of validity or serve as a measure. Neither of these apply.
As for an indicator of how lenders would view you, this argument would also struggle to hold water as each lender has their own criterion. In addition to which, lending decisions are not always based purely on your credit standing as lenders, on occasions, will target a certain demographic or type of business. There is no way a CRA can predict these factors.
The number really is meaningless by any measureable standard.0 -
No I'm not being obtuse. I am genuinely asking for a citation because I think it's pish. For example, Experian might drop your score because you have borrowed money from Wonga whereas there are lenders who just out and out reject anyone with a payday loan showing on the credit files. Likewise, Experian would reduce your score for opening up a new current account with First Direct (and getting the £125 for switching....very MSE :money:) yet opening that current account means First Direct are more likely to give you a credit card not less likely.0
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You are quoting specific examples there and i did say that there will be exceptions.
I stand by my view that it is a benchmark, an indication if you will ..
But hey - you keep on high fiving each other every time you repeat it and ignore constructive feedback about your advice
Whatever gets your "thanks" up eh ??0 -
I stand by my assection that the experian credit score, whilst not being a universal score used by lenders, does serve as a benchmark of how you are likely to be viewed by these potential lenders
But does it? Quick example, OP said he has a score of 908 with a default. My last Experian score was 846 and that’s with 0 defaults/late payments/CCJs, 15 year+ accounts held, 4 credit cards – 3 with zero balance and 1 with a low balance (cleared to make way for mortgage app) – all with no limits below £6k, high salary, bank accounts, mobile phone, on ER for 10 years+ etc. So basically as near perfect a history can be. And yet the 3 months preceding this, my score dropped by circa 150 points the month when I paid off my cards (£20k) and the following 2 months went up 40 points, and then back down to the low 700s. Only this month has it crept back up to 846.
And my friend who is currently unemployed and has 1 Cap One card to her name with a low limit, has a score of 999.
If only the scores from these companies didn’t exist, then it would force people to actually look and read their reports. Instead, I imagine the vast majority of people who look at their files (usually after being declined for something) will look at the score and wonder why if their score is so high why were they declined / not bother to scratch the surface further to see why they were declined (e.g. could have been due to affordability, high credit utilisation, being financially associated with someone etc.) But alas, Experian, Equifax and Call Credit all realise there’s big money to be made selling made up numbers.I'm a Board Guide on the Credit Cards, Loans, Credit Files & Ratings boards. I'm a volunteer to help the boards run smoothly, and I can move and merge threads there. Any views are mine and not the official line of moneysavingexpert.com0 -
Thanks Candyapple , I accept your point ..
I can only go from my personal experience where i started off with a very low score ..
I had late payments, a couple of defaults etc ..
As i slowly fixed the contents of my file, and defaults dropped away, my score rose in accordance.
Yes i did see it dip - and rise for that matter by a few points here and there, for no apparent reason
And i accept that this is most likely due to a secret algorithm tweaking it to keep your interest in checking it and for no other reason
But overall I would say that my score has always been a decent representation of the contents of my file.
Obviously others milage varies
I still disagree with the blanket statement that it is completely meaningless as for me at least , it wasnt0 -
You are quoting specific examples there and i did say that there will be exceptions.
I stand by my view that it is a benchmark, an indication if you will ..
But hey - you keep on high fiving each other every time you repeat it and ignore constructive feedback about your advice
Whatever gets your "thanks" up eh ??
I take it that means you cannot provide any citation for your claim then?
Maybe you enjoy cracking one off every time your credit score increases. Maybe you've worked very hard to increase your Experian score whereas I'm fortunate in that I don't find it onerous to pay my bills on time.
You think your credit score means something, I think it's nothing more than a marketing tool and never the twain shall meet.
Credit history, affordability and past dealings with the lender in question, those are what matter to lenders.0 -
Of course I cant . In the same way that i cannot tell you the criteria that ANY lender uses - But of course you know that.I take it that means you cannot provide any citation for your claim then?.
Maybe you enjoy cracking one off every time you get a "thanks" for repeating your abrupt statements to people asking for help.Maybe you enjoy cracking one off every time your credit score increases.
If you want to start insulting each other i am more than happy to oblige, however i was simply expressing my opinion - im sorry it differs to yours
No - I worked very hard to better the contents of my credit file - The score followed in suite - hence my opinion on this matter.Maybe you've worked very hard to increase your Experian score whereas I'm fortunate in that I don't find it onerous to pay my bills on time.?.
Lucky you that you "dont find it onerous" to pay your bills on time - But just so you know, not everyone has a perfect a life as you - hence the need for this very helpful forum
It may be useful as a marketing tool, but to say it has no correlation atall on the contents of the report is just stupidYou think your credit score means something, I think it's nothing more than a marketing tool and never the twain shall meet..
Agreed - And as no body has access to any lenders list of criteria, the experian score is a close a proximity as the general public are likely to getCredit history, affordability and past dealings with the lender in question, those are what matter to lenders.0 -
I provide examples, Candyapple provides examples, you provide diddly squat, yet anyone who dares suggest the credit score made up by a credit reference agency is pointless is stupid. The mind boggles. You've been on the forum long enough to know the three things that matter most to lenders, which I've already listed in post 19, and the Experian credit score is not on that list. Suggesting that posters take stock in the score rather than taking it with a pinch of salt and focusing on the factors that do matter is not helpful.0
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