The credit scores your lender can see

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  • bellaboosmapu
    bellaboosmapu Posts: 8 Forumite
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    Deleted_User wrote: »
    Most larger lenders don't buy scores but generate their own. Even the ones you buy can be error prone.

    I think we need to distinguish between customised, bespoke scores developed for only 1 lender which meets their specifications and requirements, vs. the generic scores made available to many. The generic ones are still pretty good at assessing risk though, not optimal (for reasons you have pointed out) but still good.
  • [Deleted User]
    [Deleted User] Posts: 35,242 Forumite
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    When I said the one that you buy, I meant the ones that are built to lender specifications.

    We found a fundamental error in their algorithm, that was throwing out the better applicants. But equally, it could have happened if we had been building our own scores at that time.

    The generic scores are obviously a lot worse than that.
  • RG2015
    RG2015 Posts: 5,907 Forumite
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    bellaboosmapu wrote: »
    To make matters more confusing, there can be several from the same CRA. Over time, CRAs will rebuild scorecards, to make use of new data sources or to accommodate changes in credit behaviour. To allow lenders to audit past decisions the CRA will continue to provide older scores. This might mean that, although two lenders are both receiving a generic bureau score from the same lender, they can be different if they are of different "vintages".
    Thanks for your reply but what I meant was more than one score from each CRA at the same time.

    I think though that between you and zx81 that I have my answer.

    I am not particularly impressed by credit scores; my wife has always been 999 with Experian despite having never had a credit card, loan or overdraft. My credit score has always been much lower and yet I I have been able to obtain multiple credit cards and bank accounts
  • Pixie5740
    Pixie5740 Posts: 14,515 Forumite
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    I disagree. The credit scores you see when you login to MSE Credit Club, ClearScore and Noddle are a load of bobbins. Each credit reference agency scores me as fair, I think the MSE Credit Club even had me down as poor at one point yet I have never had issues obtaining credit and that's at the representative rate so how Experian et al rates me is clearly irrelevant. In fact last month when my MSE Credit Club score went down my credit card provider wrote to me saying I was eligible to increase me limit, which I did, and no they aren't making lots of money off me in interest each month, they're making diddly squat.
  • [Deleted User]
    [Deleted User] Posts: 0 Newbie
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    I agree on the bobbins.

    My 'scores' are poor or very poor, yet I was able to get a loan @ 3% APR from First Direct, a new car from Ford and just opened a bank account with M&S, who are just as picky as First Direct when it comes to new accounts.
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