Horrible Credit Score - What to Do if Provider Is Useless?

dosada on 23/08/2019 - 11:39

Hello,

i have a kind of unusual problem. My credit score was around 600 and raising. This was happening until a few months ago when my score was 679. Out of the blue sky and without any impact my credit score dropped to 290. The data is provided by experian/creditsavvy and contacted them didn't help at all. I just got a message which basically didn't answer any of my quesions.

"Dear Consumer ,

What is your Experian Credit Score

Each credit bureau calculates your credit score differently. For example, your credit score from Experian will be a number between 0 and 1,000.

The national average Experian credit score in Australia is between 500-600. So, we tell consumers that if their score is within or above that average, then not to worry. This is because; only you see that score and not the credit providers. The credit providers have their own way of rating your credit profile and they only see your Experian Credit History and not the score. We do not disclose how the score is calculated however we can give you a summary.

The score is calculated by statistical algorithms, and it all depends on the data listed on your report. It depends on variables such as how many enquiries you have on your report, if you have any open credit accounts, defaults and court judgements, alongside others. Your score is all based around the national average and depending on your personal variables, this will set how far above or below the national average your score is.

When we don’t have much data on you, there is not much to calculate the score on, and you will go more towards the national average. If you had 5 open accounts and they all had payment history up to date, your score could improve. Making sure the payments are up to date and not having too many credit enquiries on your report will also make sure that your score stays at a healthy level.

Please remember that when you apply for credit, the credit provider/bank will not look at the credit score of your Experian Credit File. They will look for any negative information and use the details you have provided in the application form and create their own score.

Also, it is impossible to have a score of 1000 just as it is impossible to have a score of 0. We recommend to not worry too much about the score and focus on the data listed on your report instead."

Financial

Comments

  • Peter Enis on 23/08/2019 - 11:47
    +8

    We recommend to not worry too much about the score

    That is all you need to know.

    • HighAndDry on 23/08/2019 - 12:01
      +3

      Yeah, especially since:

      The credit providers have their own way of rating your credit profile and they only see your Experian Credit History and not the score.

      This is just how this group's calculated your credit score from your credit history. Every other bank/credit provider will do their own calculations.

      This score is a guide, but it's your actual credit history that matters, not this particular score.

  • ronnknee on 23/08/2019 - 11:48
    +3

    What has changed?

    • elgrande on 23/08/2019 - 12:16
      +5

      OP checking it monthly

  • toniyellow on 23/08/2019 - 11:57
    +1

    If you have been reading a lot of american stuff you might think the credit score itself is important. Your actual credit history and credit report are what is important. The score is just a marketing attempt to boil that down into one number.

    As they have admitted, their credit score is never looked at

    when you apply for credit, the credit provider/bank will not look at the credit scoreof your Experian Credit File

    You could - get $5 for trying this one, see if it is any different https://www.ozbargain.com.au/node/478203
    Use all the other websites that do the similar things, some for other credit reporting agencies
    Credit Simple (illion, formerly know as Dun and Bradstreet score)
    Getcreditscore (Equifax score)
    WisrCredit (Equifax and Experian score)

    You could get a copy of your credit REPORT which has more information than the score, and will tell you if something negative has popped up that has caused the scores to look bad. https://www.moneysmart.gov.au/borrowing-and-credit/borrowing…

  • Typical16-bitEnjoyer on 23/08/2019 - 12:34
    +2

    As others have said. Your credit "score" means nothing and is never released to any third party.

    Please keep in mind Creditsavvy are funded by referrals and commissions for credit cards, loans etc. via their website.

    "When we don’t have much data on you….If you had 5 open accounts….. your score could improve.

    They are hinting very irresponsibly that if you sign up for more credit your score could improve. They don't give a shit about your score. If you sign up for more stuff, they make more money. Have a think about that.

  • mbck on 23/08/2019 - 12:44
    +1

    Ya it's not so much the score, but what's in your file. Like how many cc you've applied for, how many other loans and how much these are, how many payments you've missed, etc

    The score means nothing literally.

  • iperezgenius on 23/08/2019 - 15:02

    Get your credit report. You will be able to see if you have any defaults and issues.

    I had a default due to fraud and it blocked my credit cards until i removed it which was straight forward to do but took about 2 months.

    The report is free once a year and then you pay.

  • Baysew on 23/08/2019 - 16:50

    Pay cash?

  • b1ackmai1er on 23/08/2019 - 18:08

    Am I right in understanding that a credit agency has no information on you UNTIL you request a credit report.

    Agreeing to their terms allows them to then collect information and score you.

    • kipps on 23/08/2019 - 19:55

      No. Every time you apply for credit you’re asked to give authority to pass your information on. They get information from tonnes of sources and don’t need your authority to create a file.

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