Declined by T-Mobile

Si682000

Hi guys,

I took out a contract with T-Mobile (via 3rd party) about 3-4 weeks ago but cancelled 1 day into the cooling off period as I changed my mind about the handset.

I've tried to take another contract with them today (by another 3rd party) and T-Mobile have declined me due to my credit score.

Would the fact they did a credit check for my successful application a few weeks ago now mean my credit score isn't good enough to take out another contract - surely using my legal right to cancel during the cooling off period shouldn't affect my credit rating? And of course now they've declined, my credit score would have taken even more of a battering!

I've never been declined mortgages, loans or credit cards and always pay my credit card off each month before interest charges.

I've asked T-Mobile for an explanation but they won't elaborate. I will register with Experia and see what's going on but if anyone has any thoughts that would be most welcome.

gjchester

Si682000 wrote: »

I've tried to take another contract with them today (by another 3rd party) and T-Mobile have declined me due to my credit score.

It could be simply as you are trying to take out two new contacts within a month not your credit rating.

Si682000 wrote: »

I've asked T-Mobile for an explanation but they won't elaborate. I will register with Experia and see what's going on but if anyone has any thoughts that'd would be most welcome.

You will not get an answer from TM if they told you why you failed you could remedy that alone. Any credit reference agency only be able to tell you the search has been made, and maybe an outcome not specifically why you were declined.

You do not have a "credit score" only a credit history, any one who will offer you credit takes that history a generates a score internally they don't ask a 3rd party for a numerical score as such.

grumbler

Si682000 wrote: »

...surely using my legal right to cancel during the cooling off period shouldn't affect my credit rating?...

I wouldn't be so sure, although the effect of one credit search is neither big, nor long-lasting: Credit Ratings

Also, decision depends on the contract you apply for. Cheaper and sim-only contracts are easier to get.
And the cancelled contract probably has not been removed from the system yet.

Si682000

Thanks guys, you're helping me to get the jist of it

Si682000

By the way, the contract is the exactly the same plan as before but with a different handset

Si682000

Update :

Ok, well I've registered with Experian and got my credit report. It says my credit rating is excellent (gave a figure of 989). It came up with one negative which says "You have recently opened 1 or more new credit accounts". It goes on to say "Opening multiple accounts in a short period can indicate that you are credit hungry and that your existing credit is not sufficient for your needs. The more accounts that you open in a 6 month period, the more lenders are likely to view you as high risk. As the age of your accounts increases, the more positively lenders are likely to view you"

When I go into the full report it lists T-Mobile with an outstanding balance of £26 (the cost of the monthly plan) dated on the 10.2.13 - although next to this it says "payments are up to date". I never made any payments as it was cancelled.

I've spoken with T-Mobile. The guy to be fair, was very helpful (makes a nice change). He confirmed that the previous account had been cancelled and there was £0 outstanding on the system. He said with the previous account number my credit rating is so good that I could have had 5 lines! He does not understand why I was rejected today or why this £26 is showing on my credit file.

He suggested going back to the third party who I used today (Affordable mobiles) and getting them to use my previous account number to reapply as it won't need credit checking again as it has already been done and came back as excellent.

So, I will try that tomorrow.

In the meantime I need to get this £26 removed from my credit file.

grumbler

It does no harm and has to get removed naturally

Si682000

Yes, they've obviously not updated the fact that the account was closed and it is because I've tried to take out another credit account so soon that has put a negative on my file. Oh well, hopefully I can get it sorted.

Si682000

Rang Affordable Mobiles this morning and asked them to try the order again with the previous account number. And this has worked so should get my phone tomorrow.

Talk about having to jump through hoops but got there in the end I guess.

d123

This whole problem is more down to the dealer's ineptitude than T-Mobile then.

You can't have more than one account with T-Mobile (and dealers know that), any attempt to open a second account while the other account is on the system will fail, no matter how good your credit score is.

At least it is now sorted.