Failing credit check for mobile phone contract

LindyLoop

Hi everyone

Last week I purchased a SIM only contract from O2 - no problems save for having to go through an additional layer of security following my name change due to marriage. I had to provide my passport number (as my driving licence has not yet been returned from DVLA).

Today I rang O2 again to change my contract. They told me they would cancel the contract I took out last week and then I could purchase the new contract I wanted. So I went through the same process as last week to get the new contract. I attempted to pay for the handset on my credit card which is my only credit card and remains in my maiden name since the DVLA has my marriage certificate so I have not yet been able to get a name change.

The credit check failed and it was only after that I realised it would have since the name would not have matched. So I tried again using the same Visa Debit card as I used to purchase the SIM only contract only a fews days previously. I was very suprised to fail the credit check again.

I rang my bank who informed me that there were no problems with my account and, indeed, O2 had taken the £1.03 nominal test fee without any issue. To my knowledge, I have a good credit scoring and since I was essentially paying for the handset with cash, I cannot understand why I was declined. I have just applied for an Experian credit rating and they have said they have to do additional checks before they can supply the details to me. I can only imagine that this is due to my change of name.

Just now I tried to get a Virgin SIM only deal and I failed their credit check. What is going on? How can I have passed the credit check on Monday last week and fail it today? All this has left me without a mobile phone number which I need since it is the only number and I have. My husband is in Afghanistan and I keep my mobile phone practically strapped to me so that I never miss a call as I never know when he will be able to phone me. If he tries to phone me now he won't get me and I rely on my smartphone to use FB Messenger as that is the other way we speak to each other. If I'm away from my laptop and he tries to speak to me on FB, he won't be able to. If I can't speak to my husband it will break my heart.

Has anyone got any ideas on how I can sort out this mess? I have to wait for Experian to get back to me and that could take ages. I suppose I can get a PAYG SIM to tide me over but what if I can't sort this out? I really don't understand how my credit rating can be bad. My mortgage and credit card payments are up to date and I've never missed any payments and my bank account has plenty of funds in it. I can only think it has something to do with my recent name change and if so, how can I sort this?

I would appreciate any help and advice.

Thank you and kind regards

Linda

grumbler

Every credit search gets recorded in your credit file and affects negatively your credit score. An effect of one search is pretty small, but several searches in short time interval have a more serious impact, especially when it is some stupid computer that does the scoring and there are some discrepancies.

Credit Ratings - Martin's article.

spike7451

grumbler wrote: »

Every credit search gets recorded in your credit file and affects negatively your credit score. An effect of one search is pretty small, but several searches in short time interval have a more serious impact, especially when it is some stupid computer that does the scoring and there are some discrepancies.

Credit Ratings - Martin's article.

That's how O2 explained it to me when I worked for them,not to mention the credit check for a Simplicity SIM only contract isn't as 'harsh' as that for a contract.I've seen people pass the SIM check but fail the contract one many times...

LindyLoop

Thanks Grumbler. I realised that but I just can't understand how I could go from no problems last week to failing the credit check merely by putting the wrong details in for my credit card.

How easy will it be for me to rectify this? I know I have wait for Experian to get back to me (do you know if it is normal for Experian to say they have to do a more thorough search on an individual as they have done with me?). I am not relishing the idea of a PAYG rip off deal for as long as it is going to take me to sort this out.

I guess I am pretty ticked off. I have never had this happen to me in my entire life and to think that something so minor could do this is annoying to say the least. I could understand if I had missed mortgage payments (never), defaulted on a loan (never) or had no money in the bank. I can see the next few weeks are going to more stressful than they already are or need to be.:(

Thanks again

Linda

LindyLoop

spike7451 wrote: »

That's how O2 explained it to me when I worked for them,not to mention the credit check for a Simplicity SIM only contract isn't as 'harsh' as that for a contract.I've seen people pass the SIM check but fail the contract one many times...

Too late now. I tried to get another O2 SIM only deal too but the damage was obviously done and I failed that credit check. I can only imagine the root of this problem lies with my name change as I have never had to go through the extra layer of security I had to go through last week to take out the SIM only contract (i.e provide my full passport number and details).

I feel like a bloody credit leper now ....:(

d123

LindyLoop wrote: »

How easy will it be for me to rectify this? .

It's easy, just not quick, you consented to 3 (4?) credit checks in under a week, it's hammered your file, wait a few months, and it should settle down.

I can't see what Experian can do, they only supply O2 and Virgin with the data that O2 or Virgin use to make a decision, it's not like the credit checks were in error, or fraudulent. Your file must be slightly less than good for a few credit checks to cause declines for sim only deals, have you actually checked your credit files with all the agencies?

grumbler

LindyLoop wrote: »

...
How easy will it be for me to rectify this?...

AFAIK the effect of a recorded search lasts for several months (~3?), although the records remain in the file for a longer time.

Aiming_High

O2 automatically decline a second contract within 30 days of taking out a contract. You can apply for say 2 on the same day but the next day would be an automatic no. Even though they cancelled the other one I think you'll find this is probably the reason why it got denied.

LindyLoop

d123 wrote: »

It's easy, just not quick, you consented to 3 (4?) credit checks in under a week, it's hammered your file, wait a few months, and it should settle down.

I can't see what Experian can do, they only supply O2 and Virgin with the data that O2 or Virgin use to make a decision, it's not like the credit checks were in error, or fraudulent. Your file must be slightly less than good for a few credit checks to cause declines for sim only deals, have you actually checked your credit files with all the agencies?

Thanks. This is why I am really confused. Last week = no bothers. Got the SIM card contract. The person who I dealt with at O2 did say that the additional layer of credit they had to do for me (i.e. passport) was due to my very recent change of name on my bank account. I expected and accepted that since changing my name on my bank account this was the first credit agreement I had entered into. I obviously need to see what is on my credit report that has caused this and I can access a credit check package on my software at work.

LindyLoop

Aiming_High wrote: »

O2 automatically decline a second contract within 30 days of taking out a contract. You can apply for say 2 on the same day but the next day would be an automatic no. Even though they cancelled the other one I think you'll find this is probably the reason why it got denied.

Now this I find really strange (the guy at O2 mentioned this and I said to him what I am posting here). Why allow a 14 day cooling off period when you can change your mind and cancel your contract? They should say "14 days to cancel with O2. No new contracts can be taken out before 30 days have lapsed."? When I phoned O2 today I asked them to upgrade to a better package but O2 said no, I had to cancel and re-apply. Surely they must expect that customers are likely to change their minds in the 14 days and not necessarily want to go to another provider; chosing to stay with O2 and get a better contract/phone deal? If this 30 day period is standard O2 practice, then why did they allow me to go for another contract when they could see that I only took my other contract out 5 days previously? Surely they should have said, yes you can cancel but no you cannot take out another contract with us until 30 days have passed?

Does anyone know if this 30 day decline rule is in fact the case? If it is then surely O2 sales staff must know this? If they did, then they have screwed up my credit report with their incompetence. If they don't then there's something amiss here

grumbler

I think you greatly overestimate the general level of competence and intelligence of any low-level telephone CS. There are some bright people there, but they are not very common.