I behave well but my credit scores are poor
chrisinnes
Posts: 9 Forumite
Experian (credit club) credit score 654 (poor)
Cleascore score 302
Noddle score 2/5
I feel as though I know a fair bit about credit files etc. After all, in just over a decade I have gone from being chased for debt, to owning my own home. I achieved this by learning a lot about credit, and being really well behaved.
6/8 green smiley faces on credit club (8 things you need to know...)
2 yellow faces (not smiles or frowns), which are credit utilisation (maxed out CCs - but always paid on time) / and account stability - average account under six years.
I have had a mortgage for three years - always paid on time. i have paid a couple off loans early in the past.i have ben on the voter's register for years at my various addresses (three addresses in past six years).
I know that credit scores are less important than credit reports, but surely they are also a function, or general assessment, of credit reports. If so, they give a basic overview?
I would understand fair or good (as opposed to poor) ratings,
Cleascore score 302
Noddle score 2/5
I feel as though I know a fair bit about credit files etc. After all, in just over a decade I have gone from being chased for debt, to owning my own home. I achieved this by learning a lot about credit, and being really well behaved.
6/8 green smiley faces on credit club (8 things you need to know...)
2 yellow faces (not smiles or frowns), which are credit utilisation (maxed out CCs - but always paid on time) / and account stability - average account under six years.
I have had a mortgage for three years - always paid on time. i have paid a couple off loans early in the past.i have ben on the voter's register for years at my various addresses (three addresses in past six years).
I know that credit scores are less important than credit reports, but surely they are also a function, or general assessment, of credit reports. If so, they give a basic overview?
I would understand fair or good (as opposed to poor) ratings,
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Comments
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chrisinnes wrote: »I know that credit scores are less important than credit reports, but surely they are also a function, or general assessment, of credit reports. If so, they give a basic overview?
Well you obviously don't because you're still paying attention to them. Someone who's been bankrupt can have a 999 score on Experian, do you think that's a good indication of how they manage their money? Of course it's not so that shows not that the scores are "less important" but that they are, in fact, pointless.0 -
Er, I do understand that scores are less important than reports. That is why I explained it. Why the attitude?
It is quite possible that I don't hold a huge value in something whilst still being curious as to its nature and explanation.
You tell me that a bankrupt can have a perfect credit score in a tone which suggests I should already know this. I did not know this as I have never been bankrupt. You seem rather arrogant to me.
Can someone with more manners explain why this is happening, rather than trying to be condescending please?
Just to reiterate - as i explained in my first post - I KNOW THAT SCORES ARE NOT SEEN AS IMPORTANT. I am curious as to the mechanics.0 -
chrisinnes wrote: »2 yellow faces (not smiles or frowns), which are credit utilisation (maxed out CCs - but always paid on time) / and account stability - average account under six years.
This gives you a couple of things to bear in mind in order to be seen as more credit worthy in the future (ignoring the actual score). I have kept one bank account and one credit card consistent even though I switch others around for deals. Maxed out credit cards - unless on a promo rate - are not a great sign. I would try and get below 50% utilisation.I’m a Senior Forum Ambassador and I support the Forum Team on the Pensions, Annuities & Retirement Planning, Loans
& Credit Cards boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com.
All views are my own and not the official line of MoneySavingExpert.0 -
The scores are largely fictional and entirely irrelevant.
They're not 'less important' than the scores. They're completely pointless.0 -
Thanks for this. I actually have three bank accounts: bills & wages / daily / spare. They are all at least five years old and my spare account is over a decade old.
I have been using CCs as 'free loans' (as i can normally get 0% promos), and in fact, these will all be fully paid off in a couple of weeks as I am about to sell my home and will be debt-free other than mortgage on next home. So future is looking great. I leaned that maxing them out is not good for credit reports after starting to use them in this way but took the hit on my credit reports as preferable to paying interest - swings and roundabouts, eh?
I am just baffled as to how I would class myself as a really good bet for a lender (as I never miss payments and I have had a perfectly managed mortgage for three years), on the voter's, etc, yet maxing out CCs seems to have such a disproportionate effect on my credit score.0 -
It's strange to be constantly told by really legit bodes such as MSE (and others) that scores are completely irrelevant, yet MSE has credit scores as part of some of its perks...0
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Deleted_User wrote: »The scores are largely fictional and entirely irrelevant.
They're not 'less important' than the scores. They're completely pointless.
I get the irrelevant and pointless bit..... fictional?? Surely they must be generated by an algorithm and therefore based on facts, regardless of how useful or useless???0 -
They're not based on the facts that lenders look at.
It would be like Tesco giving you a credit score, based on your baked beans consumption.0 -
chrisinnes wrote: »It's strange to be constantly told by really legit bodes such as MSE (and others) that scores are completely irrelevant, yet MSE has credit scores as part of some of its perks...
MSE gives you access to your credit report and credit history as a perk0 -
Pointless but not fictional, imo, and the creditors also have their own internal scoring system they use when giving credit. Because you can be in lots of debt, declare bankruptcy, and have a score as 999 "excellent" or use debt in a good way - maximise 0% promotions, never late, never default - but be given a "poor" score shows how irrelevant they are especially as the former person would get turned down for new credit when the latter may be given it.chrisinnes wrote: »I get the irrelevant and pointless bit..... fictional?? Surely they must be generated by an algorithm and therefore based on facts, regardless of how useful or useless???
If it was that a better score gave you more likelihood a better chance getting credit, then credence would be given, but I would assume that the short shrift reply given, e.g. fictional, is because of how often the question is posed.
There is no point in trying to analyse why a particular score is given as most creditors have their own internal scoring mechanism and the CRA's is more to get punters to part with their cash to undertake so called "score improvement" schemes or so they can monitor the "score" daily rather than it having any impact on whether they will get future credit.
People are perfectionists, its why you get people trying to improve their score or announcing their 999 score with pride expecting the world is now their oyster.0
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