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  • FIRST POST
    • Sernin
    • By Sernin 30th Jan 18, 2:08 PM
    • 5Posts
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    Sernin
    Mobile phone credit checks
    • #1
    • 30th Jan 18, 2:08 PM
    Mobile phone credit checks 30th Jan 18 at 2:08 PM
    My wife has an existing contract with EE. We wanted to change so firstly went to CPW for a good Vodafone deal (better reception in our area). Failed the Vodafone credit check but told EE, O2 etc were ok. Phoned Vodafone direct and passed - offered a more expensive deal.
    Went to Mobilephonesdirect - same story, failed a credit check for O2. Both O2 and Vodafone deals were the best we could find in the market. Phoned O2 direct, passed check and offered a phone, again more expensive than MPD. Got my wife's credit score and report - and spoke to - Equifax and Experian. All 100%, no negative comments etc.
    Am I being cynical in thinking that it is more than coincidence that the two cheapest deals in the market suddenly get declined on credit grounds when the network suppliers are OK with the same risk for a higher priced package?? Legally no-one can force any supplier to sell them something but I'm starting to find this practice rather smelly, especially if somehow a negative credit request is engineered and the impact that can have on personal credit scores. Anything to be done - a subject for MSE to highlight perhaps?
Page 1
    • zx81
    • By zx81 30th Jan 18, 2:12 PM
    • 15,454 Posts
    • 16,377 Thanks
    zx81
    • #2
    • 30th Jan 18, 2:12 PM
    • #2
    • 30th Jan 18, 2:12 PM
    It seems more likely that the errors, or non availability of deals are at the third party end.

    Remember also that a search is just a search. It will have minimal impact on your history, and of course, you have no personal credit score.
    • DCFC79
    • By DCFC79 30th Jan 18, 2:12 PM
    • 30,910 Posts
    • 19,545 Thanks
    DCFC79
    • #3
    • 30th Jan 18, 2:12 PM
    • #3
    • 30th Jan 18, 2:12 PM
    My wife has an existing contract with EE. We wanted to change so firstly went to CPW for a good Vodafone deal (better reception in our area). Failed the Vodafone credit check but told EE, O2 etc were ok. Phoned Vodafone direct and passed - offered a more expensive deal.
    Went to Mobilephonesdirect - same story, failed a credit check for O2. Both O2 and Vodafone deals were the best we could find in the market. Phoned O2 direct, passed check and offered a phone, again more expensive than MPD. Got my wife's credit score and report - and spoke to - Equifax and Experian. All 100%, no negative comments etc.
    Am I being cynical in thinking that it is more than coincidence that the two cheapest deals in the market suddenly get declined on credit grounds when the network suppliers are OK with the same risk for a higher priced package?? Legally no-one can force any supplier to sell them something but I'm starting to find this practice rather smelly, especially if somehow a negative credit request is engineered and the impact that can have on personal credit scores. Anything to be done - a subject for MSE to highlight perhaps?
    Originally posted by Sernin

    Are you on the electoral roll ?

    Stop applying for now.

    Forget the score as its no use since only you see it, it could be 999 and be of no use.

    Why not buy a phone outright and go sim only.
    Last edited by DCFC79; 30-01-2018 at 6:08 PM.
    Can people stop loaning money/being a guarator to family/friends, it rarely ends well and you lose out as your money is gone or you get shafted with being a guarantor.
    • Sernin
    • By Sernin 30th Jan 18, 4:42 PM
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    Sernin
    • #4
    • 30th Jan 18, 4:42 PM
    • #4
    • 30th Jan 18, 4:42 PM
    Sorry slightly wrong there. We do have personal credit scores and my wife's has decreased slightly following the failed applications. Also we have the full report and that shows the multiple applications and resulting enquiries. Why should she stop applying if, as suggested, the retail outlet, instead of withdrawing the offer, tells people that they have failed a credit test??? Illegal!
    We did look at buying and SIM only but it only makes sense if you keep the phone over 2 years otherwise most deals are very similar to a contract.
    • Gary_Dexter
    • By Gary_Dexter 30th Jan 18, 4:54 PM
    • 538 Posts
    • 318 Thanks
    Gary_Dexter
    • #5
    • 30th Jan 18, 4:54 PM
    • #5
    • 30th Jan 18, 4:54 PM
    You don't have a credit score - it's a made up number and goes up and down as the wind changes and as it seems fit to.

    No one sees it or cares about it.

    If you like I can transfer you some of my numbers to fill up what has dropped?
    I'll even throw in a few extra as a measure of goodwill.

    What matters is the data and history on your files.

    Lenders use their own scoring and assessment to decide whether to accept you as a customer or not
    • zx81
    • By zx81 30th Jan 18, 5:05 PM
    • 15,454 Posts
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    zx81
    • #6
    • 30th Jan 18, 5:05 PM
    • #6
    • 30th Jan 18, 5:05 PM
    Sorry slightly wrong there. We do have personal credit scores
    Originally posted by Sernin
    You don't.

    You have a number that a company has told you is a credit score.

    In fact you have two other companies, who give you two other different numbers, and they all tell you it's your personal credit score too.

    It's not.
    • Sparx
    • By Sparx 30th Jan 18, 5:55 PM
    • 844 Posts
    • 456 Thanks
    Sparx
    • #7
    • 30th Jan 18, 5:55 PM
    • #7
    • 30th Jan 18, 5:55 PM
    Must be something negative on your credit profiles, to be declined for credit on a mobile phone contract... So you have no historic debts with any mobile network? No late/missed payments, Defaults, CCJs or not listed on the Electoral Roll? No CIFAS fraud markers either?
    • DCFC79
    • By DCFC79 30th Jan 18, 6:07 PM
    • 30,910 Posts
    • 19,545 Thanks
    DCFC79
    • #8
    • 30th Jan 18, 6:07 PM
    • #8
    • 30th Jan 18, 6:07 PM
    Sorry slightly wrong there. We do have personal credit scores and my wife's has decreased slightly following the failed applications. Also we have the full report and that shows the multiple applications and resulting enquiries. Why should she stop applying if, as suggested, the retail outlet, instead of withdrawing the offer, tells people that they have failed a credit test??? Illegal!
    We did look at buying and SIM only but it only makes sense if you keep the phone over 2 years otherwise most deals are very similar to a contract.
    Originally posted by Sernin
    So keep the phone over 2 years then, gp for 3 or 4 then.
    Last edited by DCFC79; 30-01-2018 at 8:53 PM.
    Can people stop loaning money/being a guarator to family/friends, it rarely ends well and you lose out as your money is gone or you get shafted with being a guarantor.
    • Sernin
    • By Sernin 31st Jan 18, 1:00 PM
    • 5 Posts
    • 0 Thanks
    Sernin
    • #9
    • 31st Jan 18, 1:00 PM
    • #9
    • 31st Jan 18, 1:00 PM
    No both the full Equifax and Experian credit REPORTS are perfect, also had this confirmed verbally when I spoke to them. So the other chap posting saying it is a made up number is wrong. Also I sepnt all my professional life in finance so I do know what I'm talking about. Have been through the report with a fine tooth comb and absolutly nothing negative at all. My suspicion is - in view of the fact that both networks offered us contracts that were more expensive (i.e. a higher credit risk) than the two very good deals from CPW and Mobiles Direct - that for some reason bother retailers do not want to offer these deals, or are unable to do so and are using the "refused credit" as am excuse that most people cannot argue against.
    • DCFC79
    • By DCFC79 31st Jan 18, 1:17 PM
    • 30,910 Posts
    • 19,545 Thanks
    DCFC79
    No both the full Equifax and Experian credit REPORTS are perfect, also had this confirmed verbally when I spoke to them. So the other chap posting saying it is a made up number is wrong. Also I sepnt all my professional life in finance so I do know what I'm talking about. Have been through the report with a fine tooth comb and absolutly nothing negative at all. My suspicion is - in view of the fact that both networks offered us contracts that were more expensive (i.e. a higher credit risk) than the two very good deals from CPW and Mobiles Direct - that for some reason bother retailers do not want to offer these deals, or are unable to do so and are using the "refused credit" as am excuse that most people cannot argue against.
    Originally posted by Sernin
    Your score is made up, the score as in the 876 is made up, your report isn't made up, there's a difference between the 2.

    Maybe watch the Martin Lewis show from last week.

    If you work in finance as you say then you should know the score isn't seen by anyone but yourself.
    Last edited by DCFC79; 31-01-2018 at 1:33 PM.
    Can people stop loaning money/being a guarator to family/friends, it rarely ends well and you lose out as your money is gone or you get shafted with being a guarantor.
    • Sernin
    • By Sernin 31st Jan 18, 1:53 PM
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    • 0 Thanks
    Sernin
    Yes but I have been talking about the report all the time. Missed the programme and now out of time as we are on holiday from tomorrow, was it relevant to credit issues or phones?
    • Candyapple
    • By Candyapple 31st Jan 18, 2:11 PM
    • 2,626 Posts
    • 1,968 Thanks
    Candyapple
    No both the full Equifax and Experian credit REPORTS are perfect, also had this confirmed verbally when I spoke to them. So the other chap posting saying it is a made up number is wrong. Also I sepnt all my professional life in finance so I do know what I'm talking about. Have been through the report with a fine tooth comb and absolutly nothing negative at all. My suspicion is - in view of the fact that both networks offered us contracts that were more expensive (i.e. a higher credit risk) than the two very good deals from CPW and Mobiles Direct - that for some reason bother retailers do not want to offer these deals, or are unable to do so and are using the "refused credit" as am excuse that most people cannot argue against.
    Originally posted by Sernin
    Clearly you don't. Otherwise you would know to stop applying for credit if the result has been 2 declines so far. The more hard searches you do in a short period of time makes you look desperate to lenders and also counts against you with the lender's own internal credit scoring policy.

    Your credit score from the credit reference agencies is as useful as a chocolate teapot. It is just a marketing tool used by the credit reference agencies to sell you products. At best, a credit score is just an indicator of credit worthiness, but is best taken with a pinch of salt.

    The free versions to check your credit files are below:
    Experian: www.moneysavingexpert.com/creditclub
    Equifax: www.clearscore.com
    Call Credit: www.noddle.co.uk

    What you need to do is look properly at all 3 of your reports / your wife's reports.

    Are you on the electoral roll (does it show on all 3 files?)

    Do you have any other closed / settled accounts in your history?

    Do you have many other 'credit' accounts showing on your files such as bank account / mobile phone etc.?

    Have many credit applications have you made in the last 12 months?

    Do you have any other loans / overdraft / car finance etc?

    Do you have any late payments / defaults / CCJs?

    Lastly, another factor that a lot of people forget is that just because you may have a good credit history and would be the perfect customer, that doesn't mean that the company wants you as a customer. It could be that they are looking for customers who fit a lesser profile (i.e. couple of late payments, maybe even a default) because the lender may view them as being a good risk of making money out of them.
    I'm a Board Guide on the Credit Cards, Loans, Credit Files & Ratings boards. I'm a volunteer to help the boards run smoothly, and I can move and merge threads there. Any views are mine and not the official line of moneysavingexpert.com
    • Sernin
    • By Sernin 14th Feb 18, 12:18 PM
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    Sernin
    Don't know why you feel the need to be rude Candyapple. We have made two applications all the rest are verbal/written queries. As to all your questions they are all positive answers in our favour and there are no other applications with the exception of changing energy supplier. No defaults etc no other finance etc. etc. Loads of confusing answers which contradict each other. Retailer says they are not responsible for the check but the agency they use says they are. Made a complaint to CPW who say - thanks we'll investigate but the results are "confidential" and will not be communicated to you. Internal use only. The rat is getting more smelly by the moment.
    • zx81
    • By zx81 14th Feb 18, 12:24 PM
    • 15,454 Posts
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    zx81
    Loads of confusing answers which contradict each other. Retailer says they are not responsible for the check but the agency they use says they are.
    Originally posted by Sernin
    It's very simple.

    The retailer carries out the check, using the data (not score) held by the CRA.
    • Tarambor
    • By Tarambor 14th Feb 18, 2:35 PM
    • 2,205 Posts
    • 1,591 Thanks
    Tarambor
    No both the full Equifax and Experian credit REPORTS are perfect, also had this confirmed verbally when I spoke to them. So the other chap posting saying it is a made up number is wrong. Also I sepnt all my professional life in finance so I do know what I'm talking about.
    Originally posted by Sernin
    Clearly not. NO LENDER USES THE CREDIT SCORE THAT CREDIT REFERENCE AGENCIES GENERATE.

    From Citizens Advice:
    Different lenders use different systems for working out your score. They won't tell you what your score is but if you ask them, they must tell you which credit reference agency they used to get the information about you. You can then check whether the information they used is right.

    Because creditors have different systems to work out credit scores, even if you’re refused by one creditor, you might not be refused by others.
    Money Advice Service
    Banks and credit card companies use a variety of information to give you a credit score, which determines whether they will lend to you and on what terms.

    Credit scoring can be based on information such as:

    What you provide on your application form
    What the lender might already have about you, based on previous accounts you have with them or previous applications, and
    Your credit report at one or more credit reference agencies – the three main CRAs are Experian, Equifax and Callcredit
    I put report in bold because it means the contents, not the score.
    • Tarambor
    • By Tarambor 14th Feb 18, 2:38 PM
    • 2,205 Posts
    • 1,591 Thanks
    Tarambor
    Don't know why you feel the need to be rude Candyapple.
    Originally posted by Sernin
    To be fair you brought that upon yourself when you started bleating on about working in finance, you knew what you were talking about and everyone was wrong. Just because you worked in finance doesn't mean you know everything because finance is a very large area which is why when I want to save money on my income I go to a tax accountant and when I want to invest money I go see a financial advisor. A tax accountant is quite poor at giving investment advice and a financial advisor knows little about tax.

    Quite clearly you don't know what you're talking about in this respect. Phone any lender and ask them and they'll all say they don't use the score the credit reference agencies generate you.
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