I've been given free enhanced access/protection to Experian due to my trade union having their membership list nicked, (🙄) and there's an interesting observation I've made that my main bank account apparently isn't part of their monitoring. I assume it's because I've had the same account for 35 years since I was a student.
Given this is where my wages are paid in and most of the regularly paid DD's originate, would it be worth trying to get it added? As it is my score is pretty high so I'm not looking to get it boosted necessarily.
Also, one of the features of the enhanced access is that I can add a load of additional personal data the service can scan the interwebs for to see if it has been compromised. Passport number, driving licence etc. Feels a good idea at face value but in itself seems something of a security risk if a hacker cracked Experian. Which side of that risk decision would you choose?
Do you have an overdraft? If not your account isn't a credit product so wouldn't appear on a credit file.
Do you have an overdraft?
Yes, that account has an overdraft. But surely a current account would appear anyway as that evidences your capacity to pay for new credit applied for?
Some financial providers do not share current account information with Experian.
Typically this tends to be very old current accounts or accounts from new Fin Tech companies.
Your current account provider may be one of these.
Given the account age I'm not surprised it isn't there. A new account with an overdarft would be sent to credit agencies. The reporting isn't very fast or detailed, you would have to stay in overdraft (probably for a month) for it to be sent. If you dip in then pay it back quickly it wouldn't necessarily be reported.
It is just a credit file though, it isn't tracking your savings, income, or any other assests. So no, a bog standard current account without any borrowing attached to it wouldn't be relevant.
But surely a current account would appear anyway as that evidences your capacity to pay for new credit applied for?
Nope - large amounts of savings don't even count!
I think the logic is it could all be spent/moved fast if someone was inclined to.
Huh, interesting. My assumptions about how credit ratings work are clearly wrong! Thanks all.
The whole concept of a single credit rating/score is misleading - it is a number made up by the credit reference agency, which they often try and use to sell additional services. Lenders don't use that number, when you apply for credit the lender will download the whole credit file and run it through their own scoring processes.
But surely a current account would appear anyway as that evidences your capacity to pay for new credit applied for?
Nope - large amounts of savings don't even count!
I think the logic is it could all be spent/moved fast if someone was inclined to.
Large amounts of savings and other assets do count, albeit indirectly.
The variables in a credit score are related to your likelihood of defaulting on a credit agreement.
Things like, the number of times you have been in arrears recently, how often you use your credit card for cash withdrawals, the ratio of your borrowings to income, etc..
If you have lots of savings then all, or most of these variables, will be really good and you will have a good credit score.
I have a weak/average credit rating at present. Why? I only have a mortgage (small), I have no debt on credit card and do not 'utilise' my credit enough, I have no overdraft, I have no odd credit accounts with stores, I have paid off any loan on the car and so appear to be a 'poor' credit customer as I have a lack of credit debt and appetite for debt.
Between mrs_oab and I we nearly own an expensive house, we have significant savings, we have no issues with cashflow or significant financial worries. I earn a metric shed-load more than the average person, and have no dependents.
IMO, credit ratings are purely a marketing tool to sell you debt.
Oh, and MoneySavingExpert Credit Club is free for all to use, and has sensible advice.
Martin Lewis did a section on this on his show last week, basically a credit score is fluff and not used by a lender to calculate creditworthiness.
IMO, credit ratings are purely a marketing tool to sell you debt.
I used the Experian free trial a few years ago to try to find old car loan details to make a claim.
I had the maximum credit score and it said this was because I did not have large debts etc. For the next few months Experian bombarded me with links to loans and credit cards. It just seemed to be in the business of working its client base to earn commission.
I've had this three times now, from different data breaches. Interestingly I haven't had any marketing from Experian at all.
What Experian are monitoring are requests for your credit record, which usually come from applying for credit. The point is to be made aware if someone is fraudulently trying to apply for credit in your name and with your dob. Soft and hard applications are logged so you can check if it's just you looking at mortgages / credit cards, or it's something you don't recognise. For the OP, if your current account hasn't recently had a credit check it won't show but there is no value to adding it. Someone actually trying to access your current account is a different beast that Experian don't / can't monitor. I would go down the sensible route of multi factor authentication and unique passwords on email accounts, bank accounts, etc and cross your fingers.
I would go down the sensible route of multi factor authentication and unique passwords on email accounts, bank accounts, etc and cross your fingers.
That pretty much describes my current bank security position. Thanks konagirl.
I have a weak/average credit rating at present. Why? I only have a mortgage (small), I have no debt on credit card and do not 'utilise' my credit enough, I have no overdraft, I have no odd credit accounts with stores, I have paid off any loan on the car and so appear to be a 'poor' credit customer as I have a lack of credit debt and appetite for debt.
Between mrs_oab and I we nearly own an expensive house, we have significant savings, we have no issues with cashflow or significant financial worries. I earn a metric shed-load more than the average person, and have no dependents.
IMO, credit ratings are purely a marketing tool to sell you debt.
Classic STW humble brag.
Experian will monitor missed payments which they get from the requestor. Overdraft in use would be recorded as that counts towards total credit as is the limit itself.
All accounts are MFA as been regulatory requirements for a number of years.
Credit scores are absolutely not marketing guff and have a very real impact on your cost of credit and availability.
Experian, Equifax and Trans Union provide free tracking services for credit score and any searches / credit agreements. If you are paying for a service you should stop as it’s not needed given you can get it for free.