Credit Scoring Confusion? Clearscore and experian

[WilmaHun]

My partner and I are applying for a new mortgage and have noticed that our credit scores on Clearscore differ to what Experian shows, and the Credit Karma app also shows a different score.

For example Experian is showing my score as 999, whilst Clearscore shows it at 567 out of 700. Surely if I'm the highest I can be on Experian I should be the same on Clearscore?
My partner also shows a different figure on one app from the other.

Is anyone clued up on this? Is there one service which is more reliable that the other?

 

[Lollypad]

I had a similar thing when doing our mortgage application one month one would take it down and the other would take it up I think they report on slightly different days of the month which may be a factor.

 

[Be More Pacific]

I can tell you, as a former mortgage underwriter, credit scores from credit reference agencies are irrelevant.

In my experience, all lenders have their own credit scoring systems (if they used them) They input all of your details then it tells you if it's a pass or fail and that will include assessment of the accounts (your credit) held on your credit reference agency file (not your credit score)

Basically, don't get hung up on it. It's bullshit.

 

[WilmaHun]

I can tell you, as a former mortgage underwriter, credit scores from credit reference agencies are irrelevant.

In my experience, all lenders have their own credit scoring systems (if they used them) They input all of your details then it tells you if it's a pass or fail and that will include assessment of the accounts (your credit) held on your credit reference agency file (not your credit score)

Basically, don't get hung up on it. It's bullshit.

Oh no, I don't know if that's reassured me or done the opposite Surely I can use them as a very rough indicator as to how I am doing?

I can tell you, as a former mortgage underwriter, credit scores from credit reference agencies are irrelevant.

In my experience, all lenders have their own credit scoring systems (if they used them) They input all of your details then it tells you if it's a pass or fail and that will include assessment of the accounts (your credit) held on your credit reference agency file (not your credit score)

Basically, don't get hung up on it. It's bullshit.

Sorry. another question. Is the AIP often an accurate indicator of whether you'll be accepted? I've seen a few people say they're "not worth the paper they're written on" which I don't really understand.

Apologies. The mortgage we're going for is at the top end of our budget so I'm panicking a bit.

I was never like this with our first

 

[Be More Pacific]

Oh no, I don't know if that's reassured me or done the opposite Surely I can use them as a very rough indicator as to how I am doing?

Well, you can but it's pointless Means absolutely squat in my opinion.

All you really need to be looking at are your individual credit accounts and making sure the payments you are/are not making are reflected accurately.

Sorry. another question. Is the AIP often an accurate indicator of whether you'll be accepted? I've seen a few people say they're "not worth the paper they're written on" which I don't really understand.

Apologies. The mortgage we're going for is at the top end of our budget so I'm panicking a bit.

I was never like this with our first

Yeah, an AIP is a good indicator - it means you've passed the credit score on the basic information provided. But then, when your full application is submitted, it will be subject to further checks - payslips, bank statements, whatever the lender wants really and, of course, the survey.

 

[TJ90]

I can tell you, as a former mortgage underwriter, credit scores from credit reference agencies are irrelevant.

In my experience, all lenders have their own credit scoring systems (if they used them) They input all of your details then it tells you if it's a pass or fail and that will include assessment of the accounts (your credit) held on your credit reference agency file (not your credit score)

Basically, don't get hung up on it. It's bullshit.

Should I stop paying £15 a month to Experian

 

[Be More Pacific]

Should I stop paying £15 a month to Experian

I would I did sign up and pay for a couple of months but that was to make sure something I'd settled a couple of years had been retrospectively marked as settled on my credit file - and the lender involved even reimbursed me for the fees as it was their fault!

Personally, I think it's a massive con. Like I said, lenders have their own credit scoring systems. I used to look at Experian and Equifax credit records every day as part of my job but that never, ever involved checking their credit scoring.

I guess it depends on why you are you using the service.

 

[Pixipoppy]

I find the same - mine seems to differ wildly! When we got our MIP they did their own check, They never really mentioned it tbh as mine was fine. I don’t think it really matters as long as it’s not a poor score. Sorry I cant be more help!

 

[Bellaboo83]

When you first sign up to experian it gives you a 999 score until it works out your true score. 999 is the highest so its only the top 0.1% actually attain that... It will update in the next few days, that's what it did to me.

I find my score is always highest on experian I'm in their 'good' band but in equifaxs 'fair' despite never missing a payment, & being good financially.

I was told credit scores are mostly affected by your available credit % on rolling debt. So they're looking at your credit card debt mostly... How much you have used vs your credit limits. Say I have a credit card of £1000 limit and have spent 900 that's a 90% credit utilisation and looks bad if that's standard month to month. If I had the same credit card and had £100 on it that's a 10% credit utilisation and that lower % shows you are not financially struggling by needed to 'live' in debt. You are scored better

To get a higher credit score quickly the advice is to lower that credit utilisation % on your rolling debts ideally to under 20 or 30%. Never miss a payment on anything that reports to your credit file and make sure you are on the voting list (I'm having a mind blank with its name haha).

If you don't have any rolling debt then get a credit card and spend £30 on it each month and pay it off in full and never miss a payment on it. That will up your score quickly. Its important that you get one you are pre-approved for via a soft credit check - you don't want a hard decline on your file right before a mortgage application

 

[WilmaHun]

When you first sign up to experian it gives you a 999 score until it works out your true score. 999 is the highest so its only the top 0.1% actually attain that... It will update in the next few days, that's what it did to me.

I've had an experian account for years. It did drop but has gone back up.

 

[TJ90]

I would I did sign up and pay for a couple of months but that was to make sure something I'd settled a couple of years had been retrospectively marked as settled on my credit file - and the lender involved even reimbursed me for the fees as it was their fault!

Personally, I think it's a massive con. Like I said, lenders have their own credit scoring systems. I used to look at Experian and Equifax credit records every day as part of my job but that never, ever involved checking their credit scoring.

I guess it depends on why you are you using the service.

Ahh i get you, thank you

 

[Sophie92]

Mortgage experts, could I ask a question?
There was an outstanding debt for a house I used to live in with an electricity company. The first I heard of it was them sending bailiffs to my current address. This caused my credit score with Experian to drop significantly although it has not affected Clearscore.

The debt was nothing to do with me and once I proved I no longer lived there it was wiped from my account. However, a couple of months later my Experian score hasn’t gone back up.

We’re planning to take out a mortgage next year, will this be a problem?

 

[Bellaboo83]

Mortgage experts, could I ask a question?
There was an outstanding debt for a house I used to live in with an electricity company. The first I heard of it was them sending bailiffs to my current address. This caused my credit score with Experian to drop significantly although it has not affected Clearscore.

The debt was nothing to do with me and once I proved I no longer lived there it was wiped from my account. However, a couple of months later my Experian score hasn’t gone back up.

We’re planning to take out a mortgage next year, will this be a problem?

Has the debt been removed from your credit file? If it's still sat there regardless of whether it says settled or not it will effect your credit score. Write to the utility company and ask them to remove the default completely from your credit file because it was not your fault. There should be some template letters on Martin Lewis page to do this

 

[Sophie92]

Has the debt been removed from your credit file? If it's still sat there regardless of whether it says settled or not it will effect your credit score. Write to the utility company and ask them to remove the default completely from your credit file because it was not your fault. There should be some template letters on Martin Lewis page to do this

Thank you! I will do this