o2 want £300 deposit for Iphone 5!! Possible workarounds?

skyboy88

Hi all.

So long story short I tried to get a new iphone 5 on my account this morning. They said i had been accepted however..... i needed a 300 quid deposit which I would get back in 3 months and i was not impressed. Granted I am aware my credit rating is poor as i took 2 overdrafts out when i was a student last year, i am now in full time empolyment making a decent wage.

Anyway, is it possible to set up the account under my mums name and account at my home address in N.Ireland granted that I live in Liverpool in a rented property then switch the DD from her account to my own?

Forgive me if I have asked a silly question. Any advice would be appreciated.

Mickyk

You can, the DD does not need to be in the account holders name. Although the account will be in your mothers name, so if you need to call them, your mum will have to do it for you.

So you may wish to then transfer the account into your name using a "transfer of ownership" normally after 3 months, to avoid any in discrepancies affecting your Mum's credit rating, and at the same time, build your own.

DUTR

Not sure what the big deal is in paying the deposit, if you get it back in 3 months, it's not as if you would have lost any interest, and in the mean time, you get an opportunity to build up a positive credit history, at the £300 deposit, you may as well add the other £200 and buy the handset outright then choose an option for low monthly bills.

Mickyk

£300 is a large outlay, even if it is only for 3 months, and you are not guaranteed getting it back, ie if you miss a bill, even if it is at the fault of the company they can lower the amount they give you back.

I think the, have Mum take it out, then after 3 months transfer it into your own name is the best option, as this allows you to save on the £300, although still build your own credit after the 3 month period is up. (So long as nothing drastic happens to your credit between now and then)

skyboy88

Ok guys, thanks for all the very informative feedback! I could pay the £300 but i have just moved into a new flat and i have allot of payments to make this month and next. I will set it up on my mum's account and transfer it over after the 3 months.

I do need to build my credit rating. Am i correct in thinking that setting up this DD and paying it on time will help my score? I am also going to get a few store cards as I have heard this will also help bump it up as well as registering to vote.?

prowla

If money is tight, do you really need a new iPhone 5?

rxbren

if your paying £300 up front may as well put a little extra together in a few months time and buy the phone out right then get the cheapest pay monthly tarriff you can find that gives you what you need that way your not paying an inflated tarriff to cover the cost of your phone

skyboy88

Money isnt really tight, I just dont want to pay £300 + £100 for the phone plus £36 up front for the first month, thats £436. The whole point of this for me is to try spread payments out so this isnt feasable for me.

I will register it to my mums account then switch to my own after 3 months. Will there be any possible issues switching from her's to my account?

adamc260

skyboy88 wrote: »

I do need to build my credit rating. Am i correct in thinking that setting up this DD and paying it on time will help my score? I am also going to get a few store cards as I have heard this will also help bump it up as well as registering to vote.?

If the account is in her name it will show up on her credit report surely not yours... After all, isn't that why your putting it in your mums name because your credit rating isn't the best?

skyboy88

adamc260 wrote: »

If the account is in her name it will show up on her credit report surely not yours... After all, isn't that why your putting it in your mums name because your credit rating isn't the best?

Yes, but i meant I was setting up the store cards etc on my account, sorry it looked like I was referring to her account!

Switching direct debits wont be an issue will it?

grumbler

skyboy88 wrote: »

...I will register it to my mums account then switch to my own after 3 months. Will there be any possible issues switching from her's to my account?

Absolutely the same issues that you have with getting a new account, i.e. a credit check and (very likely) a deposit.

As a side note, IMHO, a person for whom lending £300 for 3 months is a problem (i.e. that doesn't have any savings) simply is not in a position of buying a long and expensive contract with a mobile toy.