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Edwin Miles. Underwriting Manager

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Equifax vs Experian

Hi. I have changed car every 3 years or so for as long as I can remember and have never been refused credit.

However, I recently tried to change from my VW Scirocco to a Mazda MX-5 and was declined by Mazda finance based on my Experian score. It was an interest free deal so I imagine the lending criteria was very strict.

My Equifax score is 'Excellent' (503). However, I have just looked at Experian for the first time and it is 'Poor' (637). I don't understand how the two can be so different.

The Experian one does seem to show more recent searches but other than that everything is the same. I do have a lot of unsecured borrowing but I also have a high income and have always managed this without any defaults or late payments at all.

I'm not sure what to do now. My current PCP deal expires this year and I want to change cars as soon as possible. Should I try another lender? A deposit of a couple of thousand would be no problem. Could you help and what would be a ballpark APR (I understand that this is in no way binding)? Is it possible to approach lenders who only use Equifax? Thanks in advance.

Posted by MRB on

Answer.

Hi there, I wouldn't worry that your credit scores are so different on Equifax and Experian. There is a reason for this, Equifax uses the FICO (Fair Isaacs Company) system and Experian uses the Vantage Plus system and they are vastly different.

Basically, FICO scores from 300 to 850 and Vantage Plus scores from 501 to 990. Also, the credit reference agencies (including Call Credit) hold different sets of data on you as an individual so they have to base their scores on what information they hold. No credit reference agency is the same and your score will differ dependent upon how their algorithm is setup. Equifax & Experian will give positive and negative scores for many different things including: how many searches you've had in the past few months, whether you have any CCJ's or defaults, whether you have any recent missed payments, whether you're on the electoral register and whether your are up to your credit limits on your credit cards etc etc. There are many other details they will look at but these are just a few.

The lenders we have on our panel tend to use both Equifax and Experian when determining whether to approve an individual or not. If we are able to place you with one of our prime lenders (of which I am confident we will) you would be looking at interest rates (flat rate) of anything between 6-9%. I wouldn't get tied up over the APR though as this varies dependent upon how much and how long you take the agreement over.

I hope this advice has helped and if you need car finance please make an application and once approved we provide a no obligation quote and you can buy a car from any dealer in the UK. Kind Regards, Edwin

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Question.

Hi. Thanks for getting back to me and for the reassurance. Do you offer HP and PCP deals? At what stage would my application be recorded as a new credit search (just nervous about making things even worse!)? If I did proceed, how long would it take to get a definite offer? I have already found the new car. Thanks again.

Posted by Mrb on

Answer.

Hi again, yes we do offer both HP and PCP deals. With regards to a search showing on your credit profile it usually takes a few weeks. However I wouldn't worry too much about credit searches, lenders are more concerned about how you are paying back your credit rather than the number of searches.Once you have made an application we will have an answer for you based on your credit profile within a few hours. This approval is secure as long as you can meet the lenders criteria in terms of proving income etc (if required) I hope this helps. Edwin

Posted by on

Question.

Hi Edwin - I have been unsure about whether to apply for a car loan for some time - basically my Experian credit score is 995 (excellent) whilst my Equifax score instead is 349 (poor). Having looked into this it appears a default on my Next store card in 2009 is the main problem. This doesn't seem to bother Experian but does influence my Equifax score. I have found a car I like but really don't want to apply for credit if I am going to be rejected, as I would also like to look for a mortgage in the summer. With no other loans, credit cards or overdrafts and a £56K salary I have good affordability - what is your advice? Ben.

Posted by Ben P on

Answer.

Hi Ben, as your default is from 2009 i wouldn't think this would effect your chances of being approved for a car loan too drastically. The fact that you have a large income will help considerably too. If i'm honest having a car loan on your credit profile could strengthen your mortgage chances as it will prove your ability to pay so you may well get a better deal. Obviously you could seek independent financial advice but that's my opinion. If you need a car and need to strengthen your credit profile then a car finance agreement could do just that. All in all i'm ultra confident we could get you approved on good rates & terms. Edwin

Posted by on

Question.

I have noticed a great discrepency between the two companies. Experian has my bank details, past credit and my electoral roll details but despite sending letters and a copy of my experian statutory report Equifax have only my Virgin media account on my profile. Which do you use as it appears that Experian is more thorough?

Posted by Carlos on

Answer.

Hi Carlos, very simply we look at both credit agencies so we'll be able to see the full picture when you apply.

Posted by on

Question.

Hello there Edwin. I have a credit score of 700 with Experian and 400 with Equifax. I have a few defaults ranging from 3-5 years ago with the largest only for £400, combined they amount to approx £600 (3 of them). I have lots of settled mail order accounts on my report and have just recently been accepted for the Natwest platinum current account. There will be no "new" credit searches on my reports when I apply as I have not applied for credit since I opened my current account. I am on the electoral role at my current address and have lived there for 3 years. I am in full time employment in the armed forces with a salary of just under £26k. I have a deposit of £2-3k plus my old car which is worth 1-£2k. I would like finance for the amount of £12k minus trade in and deposit. What do you think my chances of being approved are? I have worked hard at improving my credit over the past year and wouldn't like to worsen it and not be accepted to boot. Kind regards Christopher.

Posted by Christopher H on

Answer.

Hi Christopher, thank you for your detailed question. As you have a fair credit score with Equifax & Experian, a large deposit in cash and your part exchange, a good income and a solid residential history there should be no reason whatsoever that we can't get you approved. The fact that your defaults are now settled and are a few years old helps matters too. All in all i'm very confident we can get you approved for the £8000 approx finance you need. Please apply when you feel ready. Kind Regards, Edwin

Posted by on

Question.

Hi, I have an equifax score of 501 and an experian score of 908. Which companies should I apply for a car loan with for £15000? Thanks, John

Posted by John Anderson on

Answer.

Hi John, all lenders check both credit reference agencies. You seem to have a good credit score with both Equifax and Experian and you shouldn't have any issues in getting £15,000 as long as you could prove your income (if required).

I take it you have some current clean credit at your current address and are registered on the electoral roll? Lastly, do you have a deposit as this would improve your chances? Please make an application and once approved via us you can choose your car from any dealer. Have a good weekend. Edwin

Posted by on

Question.

Hi, my Experian score is 765, Call Credit is 702 and Equifax is only 518. I am not on the electoral roll on these sites, although I have a letter stating that I am on it but Experian say it can take up to 3 months to show up.

Will I get car finance and am I better waiting till I show that I am on the electoral roll?

Posted by Janice W on

Answer.

Hi Janice, you seem to have a fair credit score from what i can see.

Regarding your electoral roll status how long have you actually been in your current address and is all of your current credit registered there?

Being on the electoral roll helps but isn't mandatory as lenders can trace credit at previous addresses and they understand that people move house and it takes time to re-register all of their active credit.

Please make an application and once approved we provide a no obligation quote and you can buy a car from any dealer in the UK. Kind Regards, Edwin

Posted by on

Question.

Hello, I have a HP agreement on a BMW, which has a balloon payment of £7,500 due soon. I want to buy a new car.

I've been paying £360 per month over 4 years and have never missed a payment. The car values are around £10,000 and WeBuyAnyCar offered me £8500. However, despite no negatives (except missing payments on an orange phone contract of £60 due to an error not of our making but settled) I got refused finance for furniture through Equifax in January.

However, when they used another lender that used Experian my credit was approved. I'm now worried about submitting a car loan application. Can you help please?

Posted by Kj Denton on

Answer.

Hi KJ, thank you for your question and apologies for the delayed response.

I wouldn't be too concerned about getting car finance as you have kept up all of your payments on your current hire purchase agreement and you have a deposit in the equity in your current car to use towards a newer car.

The lenders we deal with use both Experian and Equifax but for the above mentioned reasons i'm confident we can help. As you have had missed payments in the past the rate you'll pay will be higher than those seen on the high street as you're seen as a higher risk in the eyes of the lender however, as the old credit issues are only for a small amount you should obtain a sensible rate. As an option if you wanted to keep your current car we can re-finance balloon payments but i'll leave that decision to you.

Please make an application and once approved we provide a no obligation quote and you can buy a car from any dealer in the UK. Kind Regards, Edwin

Posted by on

Question.

Hi Edwin, my credit score with "Call Credit" is 550. I'm not sure what it is with either Equifax or Experian. I have a balance on my credit card of £2000 and haven't missed any payments.

However, I am only working with an agency on a "when required" basis which gives me an average weekly wage of about £120. I wanted to buy a car of about £2000 - £3000 over a period of 24 months.

I've also been at my address for just over 3 years and on the electoral roll for just under 3 years. I have no CCJ's or anything like that. What chances do i have on getting car credit? Thanks in advance.

P.S. I don't have any deposit to put down.

Posted by Frank on

Answer.

Hi Frank, thank you for your question and apologies for the delayed response.

Firstly, you seem to have a fair score and the fact that you have no missed payments makes me think we should have no problem in approving you for a few thousand pounds.

You also seem to have a stable residential history which helps and we do have lenders that help agency workers and people with no deposit get car finance.

Please make an application and once approved we provide a no obligation quote and you can buy a car from any dealer in the UK. Kind Regards, Edwin

Posted by on

Question.

Hello, My Experian credit shows score 831 and Equifax only 336.

I want apply for a Tesco loan when my score on Experian will go to "good" or "excellent". Do you think they will give me a loan? Thanks

Posted by Olga Maja on

Answer.

Hi Olga, thank you for your question.

I do know that Tesco only accept people with good credit histories so you can certainly try and get accepted. I wouldn't be able to tell you with certainty whether you'd be approved or not though.

If you apply and get declined please come back to Carfinance247 though as we work on finding you the lowest possible rate in the market to meet your credit circumstances.

Please make an application and once approved you can choose a car from any dealer and we also provide a no obligation quote. Kind Regards, Edwin

Posted by on

Question.

Hello, I have 999 rating on Experian, 488 on Equifiax although a default on Equifax that I am disputing as fraudulent (although dispute not shown on report).

The default apparently was only two years ago affecting me more so, Tesco, Sainsbury & Halifax have refused me on the strength of this one default. My question - Is there any remedy where lenders can look at what have going for credit rating and not this two year old default?

Posted by Michael Jasper on

Answer.

Hi Michael, thank you for your question.

You seem to have a good credit score but as you have been refused by 3 lenders your score will have been affected as you've had 3 credit searches for finance recently. The good news is that we do have lenders that help people with defaults however, the rate you receive will be higher than those offered by the likes of Tesco as the default will be visible on your profile.

Please make an application and once approved you can choose a car from any reputable dealer and we also provide a no obligation quote. Kind Regards, Edwin

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