What is a credit score?

Credit scores are often shrouded in mystery, and surrounded by rumour and speculation.

We’ve tried to clear things up a bit in our latest blog post, all about what credit scores actually are.

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Is it just me or does this article not mention the fact that a credit score (aka whatever number you see on Noddle, ClearScore, etc) is a big lie made up by the CRAs?

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I agree it is, however it is the only indication we have of where we rank in the world. :smile:

The basics and fundamentals of lending. Explained well here,

Martin Lewis on credit scores

What most consumers don’t realise is it’s your credit history, not your credit score that helps improve your access to finance and better finance. Each lender takes the credit data and builds their own scorecard. At CreditLadder we add rent to tenants credit histories so that when lenders are making their decisions they can see that the individuals largest expense was recorded as paid, on time for a long period of time.

The Creditworthiness Assessment Bill is something that we back and a very interesting development in this space, https://www.creditladder.co.uk/blog/creditworthiness-assessment-bill-lord-bird

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Do monzo have to buy into the credit score myth perpetrated by the CRAs in order to use them?

If monzo say they use the CRAs credit score (not the history) when deciding to give an overdraft then I’ll believe the score has some merit. But I bet they don’t. And if they don’t they really shouldn’t be perpetuating such rubbish.

As far as I’m concerned the score is there so the CRA can change it regularly, tell you it’s changed and get you to log in so they can advertise to you.

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Apart from the fact that it’s a completely fictitious ‘rank’, why on earth would you ever need to know how your credit file ranks against others’?

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Lol, I guess it just the competitive world we live in… :wink:

Clearly wrong then…monzo does base its lending on the no provided by CRAScreenshot_20190311-132112_Monzo

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What’s Monzo unlimited blue?

It’s bluer than Monzo blue.

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If you want to buy things do a bank transfer to move some funds into your account.

If you’d like a loan or overdraft you need to apply for one :+1:

You can apply in the Monzo app

Search the help section in app for more details

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