Credit Score - Is this Legit or Accurate?

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Forums › Finance and wealth management › Credit Score - Is this Legit or Accurate?

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#1697510 2-Jan-2017 11:46

I was surprised at my credit score, which is in the middle "standard" range, from memory. I have a good income, I've had a mortgage for 10 years and never missed a payment and I get a discounted rate from the bank, I've had a credit card for 20 years and never missed a payment, utilities always paid, bought a couple of cars (cheque), etc. So while it looks like a legit site I'm not sure the information is perfect.

empacher48

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#1697514 2-Jan-2017 12:03

I've been surprised about this one, as my credit score here is appallingly low (sub 300 - never had any defaults, bankruptcies, NAP, paid all bills on time and never missed a mortgage payment). I've enquired further to see if there was anything going wrong, but it is all legit.

However when I check my score with Veda, it is in the high 700s. How can two companies with access to the same information be so different?

I would take the D&B score with a grain of salt really.

bmt

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#1697517 2-Jan-2017 12:15

Easy, because they don't have access to the same information.

There are 3 credit reporting agencies in NZ - Dun and Bradstreet, Centrix and Veda (aka Baycorp which most people would be familiar with). If a business does a credit check they may use one or all of these companies. If they only use one then it won't show up on the others.

I've had 3 or 4 credit cards in my lifetime and yet I only have 3 enquiries on my Credit Simple report - Vodafone broadband, Vodafone mobile plan and Sky TV. As a result my score is 441.

I suppose its good for competition and keeps "fees" down by having 3 companies doing it, but when they can produce wildly different scores based on different information it really is a stupid system.

PhantomNVD

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#1697522 2-Jan-2017 12:33

So I scored a "smashing" 777 but what does the "5%" next to my address relate to???

sen8or

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#1697546 2-Jan-2017 12:40

Each credit scorecard has different weightings depending on the requirement of the lender (EG ANZs credit score card may look different to ASBs which would be different to Maracs etc) but each will look at very similar "behaviours" to establish a score -

Do you own a house? With a mortgage or without?

How long have you lived at the current address? If less than x period, how long at the previous address?

How long have you been employed by the same employer? If less than x period, how long at the previous employer?

Do you have any defaults on your credit record? If yes, are these inconsequential? (EG less x number of defaults and less than x dollars each)

How many credit enquiries do you have on your credit record within the last x period?

** Where x is stated, this is usually where the lender will input their own values based on their criteria

This is not a comprehensive list by any stretch, but it would be the main areas that companies can use to tweak what they consider to be a good or bad risk based on behaviours.

Positive credit reporting was introduced after I left finance, so it is highly likely these would also be factored in.

A low score is obtained by having values less than what a company (the scorecard creator) desires. "In general", a person who moves about a lot or changes employers frequently is a greater risk than someone who doesn't. People who own their own homes are lower risk than those that don't.

As with most things in life, there are outliers, people in all categories whom don't deserve the score assigned by a table, this is where the art of credit management comes in and "tick the box lenders" (most bankers I have ever encountered) lose their lunch over someone who doesnt fit neatly into their pre-defined little box.

Also note, none of this has anything to do with the other Cs of credit (Capacity, Capital, Collateral & Conditions), it simply looks at Character

Detruire

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#1697586 2-Jan-2017 14:54

I tried this site shortly after it launched, and it gave me a score of 0.

It only started to show an actual score months later, a year after I'd signed up for a credit card. Presumably they don't issue a score without at least 12 months of history (there was nothing else on my file within the last five years.)

rm *

tardtasticx

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#1697652 2-Jan-2017 16:13

Very much take this site with a grain of salt. Those that have done their credit score on that site, have you looked under the credit report tab to see what checks they're showing on your file?

I'm assuming this score is only taking into account the checks that Dun and Bradstreet have in their own system, and my score reflects this.
The only records they're showing under my name is a credit check each for Vodafone and Telecom back in early 2012 about 6 months apart, so they'll drop off very soon.
I get my history from Veda at least once a year just to be sure theres nothing that shouldn't be there, and that has about 10+ hard checks in the last 5-7 years as well as 4 lots of repayment history (24 months) for various accounts, so my score with Veda would most likely be very different to Credit Simple. None of my Veda history shows on the Credit Simple site at all so I imagine the places I have credit with don't use their services?

Are these guys a small player in their industry? I hadn't heard of them until all of the articles about them came around.

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timmmay

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#1697682 2-Jan-2017 16:37

Veda doesn't work right now. I requested the free report but it said "payment method unavailable try again later", and kicked me out to the home page. Annoying. I emailed them instead.

tardtasticx

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#1697684 2-Jan-2017 16:40

timmmay:

Veda doesn't work right now. I requested the free report but it said "payment method unavailable try again later", and kicked me out to the home page. Annoying. I emailed them instead.

Yeh it's done that for the last couple of times I've done it. Ended up exiting the payment screen.

If I remember correctly a few hours later I got a confirmation email anyway saying the free report request was received and would be sent in XX business days. It's worth noting they take the entire time specified, you won't get it a day earlier lol.

tdgeek

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#1697717 2-Jan-2017 17:28

Linuxluver:
tdgeek:

Its an opinion piece on Stuff (yeah, ok) so I ran it, and got a score. Anyone know if this is a creditable , pun not intended, measure?

Why I ask is that my score is 974 out of 1000. Thats good, but it seems its too good, hence my post.

http://www.stuff.co.nz/business/money/87667958/rob-stock-what-you-should-pay-for-debt

I got 934. Possibly lower than yours because I've been at my current address less than 3 years.

I've been at mine for 8 months!

tritex

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#1697730 2-Jan-2017 17:58

myndlyz:

Does anyone know if I enquire about my credit score if that will affect my credit rating score??

No it won't affect your score. It's a different type of enquiry when you access your own information.

tdgeek

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#1697856 3-Jan-2017 12:29

tardtasticx:

Very much take this site with a grain of salt. Those that have done their credit score on that site, have you looked under the credit report tab to see what checks they're showing on your file?

I'm assuming this score is only taking into account the checks that Dun and Bradstreet have in their own system, and my score reflects this.
The only records they're showing under my name is a credit check each for Vodafone and Telecom back in early 2012 about 6 months apart, so they'll drop off very soon.
I get my history from Veda at least once a year just to be sure theres nothing that shouldn't be there, and that has about 10+ hard checks in the last 5-7 years as well as 4 lots of repayment history (24 months) for various accounts, so my score with Veda would most likely be very different to Credit Simple. None of my Veda history shows on the Credit Simple site at all so I imagine the places I have credit with don't use their services?

Are these guys a small player in their industry? I hadn't heard of them until all of the articles about them came around.

Credit Simple is a Dun and Bradstreet company. It takes info from banks and utilities.

My score was high. We have a credit card, always paid off, Telco and power company, always paid on time apart from the odd forgot on my part. No loans. Current mortgage until the other place is sold. Nothing special at all. But I guess nothing or little negative defaults to a high score. Maybe 1000 is perfect, less any smaller or larger payment issues that they see. While we have a credit card, we don't apply for anything either, not for years. Apart from this house a year ago, I guess

michaelmurfy

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#2050259 6-Jul-2018 08:47

Interesting - Credit Simple has just posted a blog post in relation to this thread: https://www.creditsimple.co.nz/content/legitimate/

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Linux

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#2050302 6-Jul-2018 09:38

My score is 774 was expecting it to be higher cause my single credit card is in credit with a low limit and I have zero things on HP and I have money invested with TSB and never missed a payment for bills and my 2degrees account is in credit by $120

John

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#2050590 6-Jul-2018 15:18

Mine is low 800's, and that appears to entirely be based on having 3 Store/HP cards and an account with a Telco as nothing else is listed in the breakdown.

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