By Greg Fisher
December 10, 2014

Experian states, "Credit reports do not rate your credit or recommend that you be approved or declined, and credit reporting companies like Experian do not make judgments about the information in your credit report."

In the first place, despite the above statement, two Experian documents are titled "Poor Credit Rating" and "Personal Credit Rating Reports at Experian.com."

In the second place, there are no credit reporting companies like Experian. There are no companies of any kind like Experian.

Credit scares and score tactics

So, Experian indicates that you have a rating (whatever that is), they put it on reports, and it can be poor.

Another bold headline by Experian: "A BAD CREDIT RATING - CAN YOU REWRITE HISTORY?"

The ever-present, social media-chat-happy company also states that

• A 700 credit score is good
• "A bad credit history leads to bad credit scores"
• It can tell you "How to Improve a Bad Credit History" (same page as previous item, above)
• From it, you can "Get advice on why you might have bad credit scores and what you can do to make them better."

However, even on Experian's myths list, the ninth item is this: "The credit bureaus report people as having either good or bad credit."

Qualitative measures

Experian's clear line between good and bad (700) is quite convenient. But, is the scoring system re-calibrated on a regular basis so that 700 always means the same default rate? In other words, what's so special about 700, and, indeed, the other nice, clean break points: 550, 625 and 725? Do they correspond to whole-number default rates?

How did this scheme work out so perfectly?

Who chose the descriptions' names?

• Poor
• Below Average
• Good
• Fair
• Excellent

And, who put Experian in charge of qualitative (as opposed to quantitative) information?

In other words, who says that a guy assigned a position in a rank order has excellent-- or, indeed, poor (which must be the bad they keep referring to)-- credit?

Experian did!

On the other hand, who cares? Those numbers and so-called Quality Ratings refer to Experian's score named "PLUS" aka "your Experian Credit Score," and no lender uses it, anyway. Bad credit exists only in a world controlled by its creator, Experian.

But beware, because-- so sayeth Experian-- "HAVING A BAD CREDIT SCORE CAN COST YOU MONEY."

The difference between Bad and Good

In a system of two groups, what's not good must be bad. The only possible conclusion about the definition of bad credit scores according to Experian is this: PLUS Scores under 700.

Is that what you mean, Experian?

Experian is, indeed, in the advice business (in some states). Meanwhile, in the UK (where its operational headquarters are located)(another story, entirely), the multi-national is known-- in British english-- as a credit reference agency, and there is something called a credit rating there, too.

Is a credit rating a credit score? Is a credit score a credit rating?

And, if you can have a bad one, you might ask what in the world the definition of bad actually is.

Use hashtag: Ask Experian.