Experian Credit Expert Unreasonable Credit Scoring

[BRIGADIER2JCS]

As many Caggers will have seen I have made many posts on this forum and now I have been hit with a ridiculous credit score by Experian and I wonder if their ''representative '' would like to comment on this scenario.

 

1. I have no missed or late payments on my accounts they all read ''SATISFACTORY.''

2.I have used only 25% of my available credit

3. There is one default for less than £200.00 which is for a catalogue account which is disputed (I don't do catalogues and never have). The company has failed to respond in any way CCA & SAR just returned fees with no further comment,this has never been to a DCA.

I was alerted to the change at 1505 today by text message.

I have just 1 new account a balance transfer to a lower rate Credit Card and have no other debts at all other than those shown on the report.

This has resulted in a drop of nearly 200 points on my score.

I have put them to give a strict account of this, and given them notice that the report is defamatory.

Could there be a connection to my posts on CAG?

[BRIGADIER2JCS]

An update on the Experian problem after a phone conversation this pm.

No defaults, no missed payments, no late payments, less than 25% of available credit used

amount of interest paid on CC accounts in last 12 mths. £2.71

?Why the lower score, reply you have a balance transfer to a new account, we have no payment record

for the new account (It's new and at a lower rate than the old card) your score may improve if you continue to

manage your accounts in this excellent way for the 6-9 months.

Equifax however have raised my score.

 

Big question what's happened to Phil.

[The Debt Star]

the credit scoring used by experian is a mystery in itself brigadier. you question why yours has dropped for no reason, I wonder why mine is 999 with a squillion defaulted accounts on it. Equifax have a more realistic and useful credit scoring system.

 

the mind boggles.

 

as for phil, well one can only assume he got the sack and aint working for experian anymore

[The Debt Star]

or maybe phil's been busy identifying you in real life and has burgered your credit profile?

[BRIGADIER2JCS]

I agree the scoring is beyond belief I have as you can see from my posts no credit problems or debts what so ever,

My ''work'' demands financial ''reliability'' and I am at a loss as to how this is reasonable,I have now sent a letter

before action on an allegation of defamation, so I'll wait for their response, the other agencies have increased my score.

[BRIGADIER2JCS]

Hmmmm, perhaps I need my contacts to start removing fingers 8-)

[The Debt Star]

I still say that's why our Phil went quiet...

[BRIGADIER2JCS]

Twas not I M,lud promise:laser:

[Ninjar Gingar]

Defaults of any age or amount immediately take you off the regular scoring scale, and give you a glass ceiling of 900. The regular scoring scale of upto 999 does in theory go higher, but only shows you 999 max so therefore somebody with a perfect score would be less affected by minor changes.

 

If the default has a penny in active balance, that immediately downscores you further.

 

My guess is that having taken on a recent credit card (with associated credit scoring) your score has temporarily dropped to prevent you from taking on too many things at once given your already adverse status, this seems quite reasonable. The effects of downscoring due to searches lessens over the course of 6 months and disappears after 12.

 

Bottom line is you have a default. Expect your score to be rocky til it disappears or you pay the balance off.

[BRIGADIER2JCS]

The whole and single key to the credit score rip off is that only the

individual concerned sees it,LENDERS AND OTHER DO NOT:madgrin:

 

The banks and CC companies use their own methods of credit scoring, and us CRA data

for ID, Cifas, gain and to judge the number of applications for credit and of course for defaulted

accounts.

[The Debt Star]

Defaults of any age or amount immediately take you off the regular scoring scale, and give you a glass ceiling of 900. The regular scoring scale of upto 999 does in theory go higher, but only shows you 999 max so therefore somebody with a perfect score would be less affected by minor changes.

 

If the default has a penny in active balance, that immediately downscores you further.

 

My guess is that having taken on a recent credit card (with associated credit scoring) your score has temporarily dropped to prevent you from taking on too many things at once given your already adverse status, this seems quite reasonable. The effects of downscoring due to searches lessens over the course of 6 months and disappears after 12.

 

Bottom line is you have a default. Expect your score to be rocky til it disappears or you pay the balance off.

 

very useful post, thanks.

[BRIGADIER2JCS]

Very true, even though the scores are not seen by potential lenders.

[The Debt Star]

I did wonder why my score had flatlined at 900. seemed an odd score. makes sense now. not that their scores mean diddly sqwat in the real world anyway, but in rip-off-Britain-land the CRAs scoring earns them millions each year from gullible people, like me, who thought it had some sort of recognition by lenders.

[BRIGADIER2JCS]

The only way to get changes is to high light all

the ridiculous games the CRA's play and to expose

the ''ungodly'' links to the DCA's:madgrin:

[The Debt Star]

financed by the DCAs aint they

[BRIGADIER2JCS]

It is ''alleged'' that a DCA or two might have directors with interest

in some CRA's.

[The Debt Star]

any digging around we can do to prove that link? That is the kind of thing your MP and MEP needs to see. In black & white.

[BRIGADIER2JCS]

I am as you no in the process of putting together a submission to

the relevant government departments regarding the whole of the

industry CRA's, DCA's and Debt Purchase companies, the '' in house solicitors'' and

the misuse of the court system and the licences issued by the OFT that covers

all solicitors for acting in consumer credit cases.

Any information is welcomed and can be PM'd to me or on request

I will give an e-mail address to reply to.

[Ninjar Gingar]

I think what you have to realise here is that credit scoring is a proprietory process. Each lender scores differently, so Experian and other CRAs cannot possibly be expected to provide every single nuance on how one lender scores from another.

 

The thing is also that there is an overwhelming perception that the CRA SHOULD provide a score. In reality it's main function is to store data like a library to be provided to lenders for whatever scorecard they wish to use.

 

On the other hand were Experian et al not providing a score they would get complaints that the consumer has no access to how that report data could be interpreted, with the emphasis on COULD.

 

The scores you get from CRAs is BASED upon the typical scoring that the average lender uses...ie if you search more than 4 times per 6 months you get a lower score, if you show a lot of money cleared of credit cards each month you get big upswings. Where the score becomes meaningless is where you have a Bankrupcy or IVA involved, and although towards the end of that period you can get your flatline 900 for good recent history. the main fact that a Bankrupcy, IVA or CCJ is there to start with can bring individual decline criteria into play.

 

Is this a rip-off? Well, it's a product...lots of people find it valuable, so I guess if you know how the system works and it provides clarity then it's worth doing. Experian et al develope these score cards through research and confidential disclosure of the individual lenders' methods so they are entitled to offer it as a paid for product. No it's not shown to lenders, but that's not what it's for. The report data IS what is shown to lenders, so if you understand that adverse history like defaults are likely to result in higher rates being offered to you then the best thing to do is NOC them, and at least skirt around getting a computer scoring and hope the lenders' human underwriters take your circumstances into consideration.

 

BTW if you really don't want any reports advice and retention attempts when you cancel....just say you have existing report access through a bank that the CRA has an agreement with eg CPP or Lloyds TSB in the case of Experian or HSBC in the case of Equifax. Call Credit is a non-issue as they have online cancellation (and they are not especially comprehensive in terms of their client list)

[Ninjar Gingar]

By the way the reason I know a wee bit about this stuff is because I used to work for Experian on retentions. Don't get mad with them...just learn to play them and Experian can be played like a fiddle. For a start did you know that their free trial system can be used every single time you want a months usage...new mothers maiden name, new email, new username...nothing that would affect the data mining process. Just say you've not had a report before. Cancel the moment you sign up and all done. You even get your unlimited scores now, and free ID insurance. At the end of the month when it shuts down, just clear all cookies and cache and get another free month. (Always remember to quote the ref though so they don't spot you've had umpteen accounts...it would be spotted straight away if you just use your name for them to look you up.) Most retentions staff could not give a monkey's either way.

[The Debt Star]

Good posts.

[Doubled123]

Checked my credit expert and iv got 1 default (4k CC) registered 3 months ago and that's wizzed it right down to 314. That's cr@p, don't need it anyway!

[The Debt Star]

Thats ther beauty of it mate - if you don't want or need credit - then screw 'em. Who cares!

[Ninjar Gingar]

The lender doesn't that's for sure....that kind of score filters out all the idiots they DON'T want to deal with.

[BRIGADIER2JCS]

you should be AWARE that the '' CREDIT SCORES'' you see

on your reports are NOT SEEN BY ANYONE OTHER THAN THE DATA SUBJECT ie.YOU:madgrin: