You pointed me to this post on IRC, and here are my thoughts.
The fact is that attaching notes to your credit history has little (if any) weight on deciding your application for credit. Credit referencing agencies tend to process thousands of references a day, which each reference getting a mere cursory glance from the computer operator before clicking Yes or No - such a glance is usually at your credit score in big numbers.
If your credit score is really low (i.e. sub-125) they will instantly click No, or even the computer system itself will not even present such an application with an automatic rejection.
However, there is a review system in place that is run by many agencies. If your score is not above a particular threshold your application will not be a Yes or No, but a Possible, and this is where the application is referred to higher levels, who *may* read everything on the file.
For large credit purchases, it is sometimes a requirement to have a guarantor that must provide references on your part (such as a close friend, a respected business person you have worked with, your solicitor, but *not* family members). Only upon suitable receipt and validation (and judgment) of these references will they then click Yes on your application.
Of course, no credit checking system is the same. Different agencies run different practices, use different credit checking mechanisms, or sometimes, don't even bother checking. It's all very up in the sky, and all down to how the mood of the operator is that day (to a degree).
But back to your note. In all honestly, anything that you think will benefit yourself when trying to arrange credit - such as a simple explanation as you have presented - must be good. As long as you don't write utter rubbish (which you haven't), someone will listen eventually. Add the note and think nothing more of it.
Importantly, you should avoid credit at all times, unless it is absolutely necessary (i.e. large purchases or property).
And hi! Glad to find someone on IRC that listens to what I say once in a while :)
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Date: 2005-08-09 05:51 pm (UTC)The fact is that attaching notes to your credit history has little (if any) weight on deciding your application for credit. Credit referencing agencies tend to process thousands of references a day, which each reference getting a mere cursory glance from the computer operator before clicking Yes or No - such a glance is usually at your credit score in big numbers.
If your credit score is really low (i.e. sub-125) they will instantly click No, or even the computer system itself will not even present such an application with an automatic rejection.
However, there is a review system in place that is run by many agencies. If your score is not above a particular threshold your application will not be a Yes or No, but a Possible, and this is where the application is referred to higher levels, who *may* read everything on the file.
For large credit purchases, it is sometimes a requirement to have a guarantor that must provide references on your part (such as a close friend, a respected business person you have worked with, your solicitor, but *not* family members). Only upon suitable receipt and validation (and judgment) of these references will they then click Yes on your application.
Of course, no credit checking system is the same. Different agencies run different practices, use different credit checking mechanisms, or sometimes, don't even bother checking. It's all very up in the sky, and all down to how the mood of the operator is that day (to a degree).
But back to your note. In all honestly, anything that you think will benefit yourself when trying to arrange credit - such as a simple explanation as you have presented - must be good. As long as you don't write utter rubbish (which you haven't), someone will listen eventually. Add the note and think nothing more of it.
Importantly, you should avoid credit at all times, unless it is absolutely necessary (i.e. large purchases or property).
And hi! Glad to find someone on IRC that listens to what I say once in a while :)