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 Post subject: Credit scoring
PostPosted: Fri Sep 08, 2017 12:56 pm 
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A few months ago I had letters from two of my credit cards telling me that my limit was being increased by £500 and £1000.

Since then I have taken out a loan which seems to have made them change their minds. Now they've written to tell me they're not going to increase the limits.

I feel a bit like a naughty boy! [WHITE SMILING FACE]

Neither increase really affects me one way or the other, as I rarely use the cards and have plenty of unused credit on either. I've got everything on 0% as I move my balances around to take advantage of deals to avoid interest. I also overpay each month in my quest to become debt free.

Basically, I'm a very credit worthy person, but it would appear that taking out the latest loan has really affected my credit score in a negative way.

Truth is, I took out the loan to pay off an expensive business loan, saving myself over £2k in interest and reducing the term by around 18 months. Good bit of business by anyone's standards? Apparently not.

It would appear that business loans and accounts don't count with the credit reference agencies. I wonder why that is?





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 Post subject: Re: Credit scoring
PostPosted: Fri Sep 08, 2017 1:10 pm 
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That's strange that they would do that. Then again I never understand what credit card companies do. One of my credit cards has a £1000 limit and they won't increase it anymore, another credit card gave me a £6000 limit without even being asked.


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 Post subject: Re: Credit scoring
PostPosted: Fri Sep 08, 2017 3:02 pm 
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Rorschach wrote:
That's strange that they would do that. Then again I never understand what credit card companies do. One of my credit cards has a £1000 limit and they won't increase it anymore, another credit card gave me a £6000 limit without even being asked.
Weird lot they are. The two cards in question are Barclaycard platinum. One has a £12k limit and the other one £7k.

The one with the larger limit is only used to transfer balances onto, and the other I use for PayPal. I overpay on both and never miss a payment.

Between the two cards they have years of evidence of what type of credit risk I pose, yet they judge me on my credit file that is missing some key information so not very trustworthy.

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 Post subject: Re: Credit scoring
PostPosted: Fri Sep 08, 2017 8:41 pm 
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credit cards like turnover with money going up and down to show spending and repayment
they also like you being in debt to them so they can make money from you
you'll probably find your loan puts you above the level off debt available that they are happy with for the higher limit even though you dont use the card much :dunno:

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 Post subject: Re: Credit scoring
PostPosted: Fri Sep 08, 2017 11:33 pm 
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There's a big hoo haa going down in the USA at the moment with the biggest credit reference agencies (Equifax) admitting that they've been hacked and that details of some 137 million Americans has been compromised......

An article written to expose the hypocrisy of the credit reference agencies is to be found here:

http://www.zerohedge.com/news/2017-09-0 ... tcoin-4400

..and if any of the comments under it are to be believed then you can 'lock' your credit reference details to prevent anyone accessing them and changing your credit record thus preventing such shennanigans aas them arbitrarily changing your credit worthiness.

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 Post subject: Re: Credit scoring
PostPosted: Sat Sep 09, 2017 7:12 pm 
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big-all wrote:
credit cards like turnover with money going up and down to show spending and repayment
they also like you being in debt to them so they can make money from you
you'll probably find your loan puts you above the level off debt available that they are happy with for the higher limit even though you dont use the card much :dunno:
I know all this mate. My financial circumstances since the recession have made me into an amateur Martin Lewis.

My whole point is that there is no record of the business loan I have paid off, and this is why they have scored me down.

If credit reference agencies took business loans into consideration then my borrowing wouldn't have gone up by £8500, it would have reduced by around £3000.

It's utter rubbish, and it's what allows business bank managers to offer you loans at ridiculously high interest rates in exchange for not checking your credit file.

Totally wrong. If you're not credit worthy, you're not credit worthy whether it be personal or business.

I'm being told I'm less credit worthy than last time they looked, when in reality I owe less money and have all my finances well in hand.

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 Post subject: Re: Credit scoring
PostPosted: Sat Sep 09, 2017 10:53 pm 
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I wouldn't be at all surprised to discover the credit reference agencies work WITH loan companies to decide, amongst themselves, what interest rate you 'should' pay on any loans.

In this way the loan company gets YOU to pay a higher rate than you should and the credit reference agencies cream off a profit for their 'input'.......

BTW, Experian are now encouraging people to log on to their own account to 'lock' it and/or discover if you've been affected by the security breach. DON'T DO IT.

Apparently there is a disclaimer that, should you agree to it and move on to check your account, absolves Experian from blame and subsequent compensation claims being made against them for their incompetence. Cheeky f*****rs.....

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 Post subject: Re: Credit scoring
PostPosted: Sat Sep 09, 2017 11:18 pm 
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kellys_eye wrote:
I wouldn't be at all surprised to discover the credit reference agencies work WITH loan companies to decide, amongst themselves, what interest rate you 'should' pay on any loans.

In this way the loan company gets YOU to pay a higher rate than you should and the credit reference agencies cream off a profit for their 'input'.......
.


I honestly believe this to be the case. I regularly check my credit reports with experian, noddle and clearscore.

Credit expert (experian) noddle and clearscore all have a matching service for loans, cards and car loans etc.

Noddle has a real downer on my score, and often points me in the direction of the silly end of finance such guarantor loans and credit building cards with high Aprs.

I contacted noddle via social media and asked "why are you telling me I'm only eligible for such barrel scraping deals when I have no problem getting finance, and regularly receive balance transfer and credit limit offers?" Their reply "we all score people differently"



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 Post subject: Re: Credit scoring
PostPosted: Sun Sep 10, 2017 12:12 am 
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i am on noodle for free
as there is no such thing as free they need to sell add ons adverts or get commission from somewhere
as an aside my rating on noodle is 635 ?? assume thats ok as its in the green range :lol:
but as i have never had an outstanding amount other than normal month to month bills for perhaps 10 years wonder how that effects me :dunno:
as it happens i have about 10k behind me with perhaps half needed to cover costs over the next 20 months before my full state pension kicks in to supplliment my meagre railway pension lol

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 Post subject: Re: Credit scoring
PostPosted: Sun Sep 10, 2017 9:12 am 
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The highest credit scores are for people who have loads of debt but reliable servicing of that debt.

The better your ability at repaying it - regardless of your income etc - the more 'credit worthy' you become. So those that have zero debt, and haven't got any record of repayment ability will have the lowest scores.

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 Post subject: Re: Credit scoring
PostPosted: Sun Sep 10, 2017 10:08 am 
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kellys_eye wrote:
The highest credit scores are for people who have loads of debt but reliable servicing of that debt.

The better your ability at repaying it - regardless of your income etc - the more 'credit worthy' you become. So those that have zero debt, and haven't got any record of repayment ability will have the lowest scores.
Yeah a mate of mine found he had a poor score because he'd never had any credit.

I fall into the other category. I have quite a bit of debt, but it's less than half of my available credit, I never miss a payment and always overpay.

It's amazing that given my years of having 2 cards with them, and my squeaky clean history of payments, that barclaycard don't judge me on my relationship with them rather than my overall credit score, which as already mentioned, doesn't accurately reflect my financial affairs.

It's like me using a tradesman time and again, and being very happy with them, but then my neighbour tells me they're rubbish so I stop using them based on that.

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 Post subject: Re: Credit scoring
PostPosted: Sun Sep 10, 2017 3:39 pm 
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You only have to think about it..... how did these credit reference agencies ever come into existence?

The only people with the data they needed was the banks that loaned the money in the first place. So did the banks hand over your credit details to them? Was that legal? Same applies to any business that loaned money - did they have the legal right to hand over YOUR credit records?

All very suspect to me. Who owns those companies? It's all too much like 'insider trading' as far as I'm concerned. Surely what they're doing with 'my' private data is illegal? Wonder if anyone is going to challenge them - especially after they've been complicit in allowing that private information to be stolen????

<added> Try to find out who owns Equifax?..... zilch. Who created Equifax?.... zilch. It's now a 'publicly listed business' i.e. has shareholders but try to find out who are (is) the majority shareholder?.... zilch. It was created in 1899 and was (presumably) owned by someone (?) right up until 1960 when it was traded on the Stock Exchange.

Still can't find out who started it, who owned it, who the majority shareholder is..... something is being hidden......

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 Post subject: Re: Credit scoring
PostPosted: Mon Sep 11, 2017 2:35 pm 
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Here's a screen shot of my noddle credit score.

Tells me that a. My score is lower than the average for my area, and b. The average score for my area is lower than the national average.

Clearscore tells me that my score is higher than the local average and that the local average is higher than the national one.

How can there be so much disparity between credit reference agencies?

Image

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 Post subject: Re: Credit scoring
PostPosted: Mon Sep 11, 2017 6:52 pm 
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Quote:
Tells me that a. My score is lower than the average for my area, and b. The average score for my area is lower than the national average.

It also tells you that you are being taken for a ride.

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 Post subject: Re: Credit scoring
PostPosted: Mon Sep 11, 2017 7:05 pm 
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kellys_eye wrote:
Quote:
Tells me that a. My score is lower than the average for my area, and b. The average score for my area is lower than the national average.

It also tells you that you are being taken for a ride.
Ha! They might be attempting to.



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