refusal of credit

Anthillmob

tried to get credit today in currys and got knocked back.

they use HFC bank which is part of HSBC. will i have been knocked back because i have outstanding loans with both HFC AND HSBC? bear in mind i owe a total of £2,000 and have been paying without defaulting but at a lower payment since returning to work part time?

BexTech

Companies don't like people paying lower than they should, this alone effects your rating, they have noticed you have credit with them already and that to them you are struggling as you had to agree lower payments, they think you are too much of a risk.

Voyager2002

I think they did you a favour. If you are already having trouble managing your existing debts, the last thing you need is to buy more things on credit.

BexTech

Voyager2002 wrote:

I think they did you a favour. If you are already having trouble managing your existing debts, the last thing you need is to buy more things on credit.

Yeah, people should only buy on credit (ensure it's interest free credit) if you actually have the money to buy the item there and then. Put the money you would have used in an high-interest account, and use that to pay the monthly payments of the goods on interest free credit.

Too many people buy items on credit, never ever thinking about although I can comfortably pay the monthly payments today, if I was to lose my job tomorrow could I still pay them without problem.

Save money somewhere safe, each week/month and don't touch it, then if you are forced to buy an item that you can't do without, such as a fridge then you should have the money to cover it. For anything else, it's just a luxury and not really important, then have an account and save away for that, once you have the money, if you feel you still would like it buy it, get it on interest free credit, and pay using the money you have saved, if you can't get it on interest free credit, then go without until you find somewhere that offers it as the same low price and does offer interest free credit.

Credit isn't for people who are struggling / have no real means of paying, or don't have money to cover it. If you are struggling now, borrowing money and paying a high price for doing so means you will be struggling even more. This is why people on low-incomes or benefits often find it difficult, simply because they have jumped onto the downward spiral of loans and credit, especially from the likes of the scum called Provident. Many people don't realise that they will be worse off.

Someone might have £55 coming in for the week (rent and council tax paid by the benefits), they decide they would like a few clothes, or a new TV, so Provident lend them £300 with a loan, but you have to pay back Provident £495 - £300 for the amount borrowed and £195 in the charges (interest). Provident will want for example £9 per week for 55 weeks, now many people would find £55 per week a bit of a struggle, now you only have £46 per week and still have the bills to pay - gas, electric, phone (possibly) and food etc, so now you are going to struggle more. In this example you have made yourself £195 worse off by borrowing, to the type of people who borrow from the likes of Provident £100 is a lot. Once Provident have got you when you come close to paying off your loan they will try as much as they can to get you to borrow more moving what you would have shortly paid off onto this new loan and paying more for it. You end up having less and less money to spend on the things you need to pay - gas, electric, phone etc, so are stuck in a debt you most likely can't get out of.