DFS Creation Finance

Saints2011

Evening ordered a leather suite from DFS last night (yes DFS) took advantage of the 0% finance for 12 months, received a phone call today confirming it was approved and I could finance an additional £5000 worth of goods over a longer period with no additional credit search.

I do not intend to finance any further goods at DFS as live within my means & would of paid in full if it weren't for the 0%. Just found it strange they basically offered me another £5000 on credit with no additional search and I could extend the period. From working in banks in the past just sounded a tad odd / easy?

Anyone had a similar thing ? - I appreciate its just to cross sale new business for further commission etc.

Treadmill

Was the additional £5000 at 0%

Saints2011

Yes, the guy on the phone from DFS stated it would also be 0% & I had £5000 approved. It would involve no further credit check, wouldn't alter the order made yesterday and I could have it over 4years which differs from the 12months I selected yesterday .

I can't see he's right.

I can't recall the amount of days he said I could take up the offer if wanted, but stated it could be done in branch / or by telephoning him.

It doesn't really matter just intrigued how it works / if its completely true.

chalkie99

I think I'm right in saying that the interest free period only works if you settle before the deadline and that if you miss it by only one day then their fairly punitive interest rates kick in from the date of purchase. In other words you then get no interest free period at all.

Presumably by persuading customers to take out much more credit than originally intended they are hoping there is a higher chance they will miss that deadline and cop for a lot of interest.

KingElvis

They're desperate to shift their poor quality and over priced mats, coffee tables and other assorted tat I guess.

flicks

Just a quick heads up and probably words to the wise but Creation finance do not send a letter to inform you that your payment is about to become due. Make sure you make a note of the payment date somewhere or it will all become very expensive, very quickly.

SeanG79

Some lenders will do a credit search and advise a credit limit that they are comfortable with. Depending on the strength of the searches, it could be £1k or £20k...

Some of the vehicle finance lenders also work like this...

Saints2011

KingElvis wrote: »

They're desperate to shift their poor quality and over priced mats, coffee tables and other assorted tat I guess.

Haha

flicks wrote: »

Just a quick heads up and probably words to the wise but Creation finance do not send a letter to inform you that your payment is about to become due. Make sure you make a note of the payment date somewhere or it will all become very expensive, very quickly.

Thank you, I was aware but thanks for the reminder !

SeanG79 wrote: »

Some lenders will do a credit search and advise a credit limit that they are comfortable with. Depending on the strength of the searches, it could be £1k or £20k...

Some of the vehicle finance lenders also work like this...

I see, similar to how bank staff can see lending limits. I just assumed that applying for x amount would either accept / refer or decline not state a overall amount that could be utilised. Not very responsible lending I guess.. surprised Creation let DFS ring people stating you can also have x amount more.

Thank you

SeanG79

Saints2011 wrote: »

I see, similar to how bank staff can see lending limits. I just assumed that applying for x amount would either accept / refer or decline not state a overall amount that could be utilised. Not very responsible lending I guess.. surprised Creation let DFS ring people stating you can also have x amount more.

Thank you

It can happen that DFS supply just the customer details and not the overall price required and are supplied with a customer rating (eg A, B, C, D) and they know that a D qualifies for £500, a C for £1500.00, B for £2500.00 and A for £5000.00. The DFS rep then takes it upon themselves to try to up sell. I am not sure if this is the case with DFS, but I work with vehicle finance companies that provide me with a customer rating as an approval as opposed to finance on any specific vehicle, so might be a plausible reason...