Next Directory

gigglebuns

Apologies if this is in the wrong place.

I have had a next account for 8 months now. Last month they increased my credit limit to £600.
When they produced my statement this month they had reduced it to £500. My balance was £420 so this didnt bother me.
Today I checked my account - part way through the month and found that my available credit was zero and there was no information as to what my credit limit is.
I contacted them and was advised that they have suspended my credit account.
I am aware that Next change their limits on a regular basis but I have always paid my account on time.
What they cant tell me is if the fact that this has been suspended will appear on my credit report! :mad:

Does anyone know if this will have a negative impact on me? I only have 1 current account with overdraft and 1 credit card as I have slowly been rebuilding my credit over the past few years and thought I had got to a good place with my finances.

Can they show a suspended account even if on my report it always shows payments on time?

I think this is very unfair of Next to do this to their customers and I think that I will pay this off and close this account if this is how they treat them!

Thanks for any help.

jpb77

gigglebuns wrote: »

Apologies if this is in the wrong place.

I have had a next account for 8 months now. Last month they increased my credit limit to £600.
When they produced my statement this month they had reduced it to £500. My balance was £420 so this didnt bother me.
Today I checked my account - part way through the month and found that my available credit was zero and there was no information as to what my credit limit is.
I contacted them and was advised that they have suspended my credit account.
I am aware that Next change their limits on a regular basis but I have always paid my account on time.
What they cant tell me is if the fact that this has been suspended will appear on my credit report! :mad:

Does anyone know if this will have a negative impact on me? I only have 1 current account with overdraft and 1 credit card as I have slowly been rebuilding my credit over the past few years and thought I had got to a good place with my finances.

Can they show a suspended account even if on my report it always shows payments on time?

I think this is very unfair of Next to do this to their customers and I think that I will pay this off and close this account if this is how they treat them!

Thanks for any help.

I've had mine for a year and they increased mine from £150 to £2100 over time. Now I have no limit but only a balance of £226, always paid on time and in full or either at least 70% of the statement balance.

They receive a monthly feed from Equifax each month, depending whats on there will determine your limit with Next. If you have done some searches i.e. applied for other credit elsewhere this will reduce your Next limit for a couple of months.

If you also maxing your limits elsewhere they will also reduce or withdraw your limit for a short while. If you have default or CCJ appear - Next will withdraw your facility until these have disappeared. On my credit report I only have 12% outstanding balance vs credit limit ratio with other agreements in total (not considering Next balance), no missed payments never OR near / maxed / over limit. So I am also confused with Next's credit rationale.

I agree that their internal scoring system is somewhat 'hyper' sensitive to what information they receive from the CRAs. I applied for a Nationwide credit card and got accepted with a decent limit, then on my Next monthly statement they withdrawn my facility (obviously the search on my CRA report made Next systems go hay wire and withdrawn the limit) - I don't see their rationale with this as they're preventing their customer from spending money & pi**ing customers off - so I will be transferring this balance over to my 0% card in a week or so when I get the card. So more fool them really. I only use Next to get the designer stuff as I see their delivery next day very convenient - so back to eBay and goodbye Next

On your credit report it will not show your account is suspended. All Next will do is show the limit will match around your balance, and every time you pay more of your balance off i.e. £200 balance then pay £100 to leave a £100 balance, your limit will then reduce to £100, so on your report it will not show your over limit BUT maxed out!!

So this will not affect your report i.e. over limit however, this will show your constantly maxed out i.e. 100% balance vs credit ratio which is not good and this gives a false alarm to other lenders that you're becoming financially stressed with Next, which is obviously not the case as Next are screwing your report up with their ridiculous credit scoring policy.

So really my suggestion like I am going to do is close the account down. Next are not the ideal organisation to have a credit facility with. With my experience their credit underwriting department seems somewhat over reacting with small changes to CRA data (i.e. a credit search) and as I said I do not get their rationale over their credit scoring policy.

My advice would be to transfer the balance elsewhere or pay it off. Next harm your credit report when they keep changing your limits especially when they withdraw the credit facility!

samtoby

I think if your account is maxed they appear to reduce and remove your limit - my account doesn't have a limit it just says credit available. When I opened my account a couple of days ago they advised they don't place limits as such because they change; but they could advise I could spend £150 and this will be reviewed.

I like their clothes and if all this limit changing happens to me I will be closing it. I am suprised they gave it to me in the first place; so if they do remove it, oh well!

I must say that I was advised by another catalogue Very when I called up about something else that if a limit goes up or I max elsewhere this will effect my Very limit going up. I was hoping it might rise after this statement but no, JD Williams keeps going up every month I clear it; so I feel with this account, which is doing wonders for my credit score; that other limits are unlikeley to rise at the moment.

I did hear also that Next; if you order something large will get you to pay some of it before it is dispatched. I guess its security.

Gordon_Hose

jpb77 wrote: »

I've had mine for a year and they increased mine from £150 to £2100 over time. Now I have no limit but only a balance of £226, always paid on time and in full or either at least 70% of the statement balance.

They receive a monthly feed from Equifax each month, depending whats on there will determine your limit with Next. If you have done some searches i.e. applied for other credit elsewhere this will reduce your Next limit for a couple of months.

If you also maxing your limits elsewhere they will also reduce or withdraw your limit for a short while. If you have default or CCJ appear - Next will withdraw your facility until these have disappeared. On my credit report I only have 12% outstanding balance vs credit limit ratio with other agreements in total (not considering Next balance), no missed payments never OR near / maxed / over limit. So I am also confused with Next's credit rationale.

I agree that their internal scoring system is somewhat 'hyper' sensitive to what information they receive from the CRAs. I applied for a Nationwide credit card and got accepted with a decent limit, then on my Next monthly statement they withdrawn my facility (obviously the search on my CRA report made Next systems go hay wire and withdrawn the limit) - I don't see their rationale with this as they're preventing their customer from spending money & pi**ing customers off - so I will be transferring this balance over to my 0% card in a week or so when I get the card. So more fool them really. I only use Next to get the designer stuff as I see their delivery next day very convenient - so back to eBay and goodbye Next

On your credit report it will not show your account is suspended. All Next will do is show the limit will match around your balance, and every time you pay more of your balance off i.e. £200 balance then pay £100 to leave a £100 balance, your limit will then reduce to £100, so on your report it will not show your over limit BUT maxed out!!

So this will not affect your report i.e. over limit however, this will show your constantly maxed out i.e. 100% balance vs credit ratio which is not good and this gives a false alarm to other lenders that you're becoming financially stressed with Next, which is obviously not the case as Next are screwing your report up with their ridiculous credit scoring policy.

So really my suggestion like I am going to do is close the account down. Next are not the ideal organisation to have a credit facility with. With my experience their credit underwriting department seems somewhat over reacting with small changes to CRA data (i.e. a credit search) and as I said I do not get their rationale over their credit scoring policy.

My advice would be to transfer the balance elsewhere or pay it off. Next harm your credit report when they keep changing your limits especially when they withdraw the credit facility!

Are you sure of this "monthly feed" because I have 4 defaults on my file and they have raised my limit to £3600 over time.

I only entered a competition in Next to win an Audi. Over the years I've bought a few bits and bobs and always paid on time. Currently my Next account stands at £3600 limit £0 balance.

samtoby

Gordon_Hose wrote: »

Are you sure of this "monthly feed" because I have 4 defaults on my file and they have raised my limit to £3600 over time.

I only entered a competition in Next to win an Audi. Over the years I've bought a few bits and bobs and always paid on time. Currently my Next account stands at £3600 limit £0 balance.

Are these defaults while you have had a Next account or before?

Gordon_Hose

They were from before.

samtoby

Gordon_Hose wrote: »

They were from before.

If they give you an account and they know you have defaults then I don't think that would remove your facility - after all they offered it when you already had them. I think if your credit when bad when you had the account they could just close it - I mean they could say you no longer fit the criteria for them to offer a facility and when your account is clear it will be closed. I have heard of that with credit cards.

Gordon_Hose

AFAIK I was never credit checked. I certainly never knowingly consented to it.

The catalogues turned up one day and an account in my name was opened. Initially I was peeved, but I thought it could help rebuilding my credit. So every now and again I'd buy a t-shirt and pay it off when the statement came through. Over time my limit was increased from £250 to £3600! lol

samtoby

Gordon_Hose wrote: »

AFAIK I was never credit checked. I certainly never knowingly consented to it.

The catalogues turned up one day and an account in my name was opened. Initially I was peeved, but I thought it could help rebuilding my credit. So every now and again I'd buy a t-shirt and pay it off when the statement came through. Over time my limit was increased from £250 to £3600! lol

I hope they do that to me!x

Gordon_Hose

Why would you want that?

samtoby

Gordon_Hose wrote: »

Why would you want that?

Rebuilding credit - higher limits shows more trust if you keep paying them off. My highest limit is £600.