applying for credit - will the application itself affect my score

pwl2706

Hi all,

I want to apply for a 24 month phone plan with a free phone.

I have a steady job that pays ok btw

I don't have a perfect credit score (that much I know) with one a two defaults last year, and probably late payment or over limit reports over the last few years.

I am steadily reducing my debts, and haven't missed a payment to my credit cards for 6 months (although I have been over the limit once or twice).

I understand that even a request for credit is reported and added to my credit file and may affect my credit score, regardless of whether it is approved or not?

Am I right in that?

I don't mind an extra 'he applied for credit' on my report so long as I get my new free phone.

Or is a refusal that is added to my file and may affect mys score?

How could I find out definitively whether I would be approved in advance? I know I can get a report, but is there threshold on my credit report that simply means automated requests for credit through the mobile phone provider will be turned down?

thanks for any help
Philip

Moneysaverchris

pwl2706 wrote: »

Hi all,

I want to apply for a 24 month phone plan with a free phone.

I have a steady job that pays ok btw

I don't have a perfect credit score (that much I know) with one a two defaults last year, and probably late payment or over limit reports over the last few years.

I am steadily reducing my debts, and haven't missed a payment to my credit cards for 6 months (although I have been over the limit once or twice).

I understand that even a request for credit is reported and added to my credit file and may affect my credit score, regardless of whether it is approved or not?

Am I right in that?

I don't mind an extra 'he applied for credit' on my report so long as I get my new free phone.

Or is a refusal that is added to my file and may affect mys score?

How could I find out definitively whether I would be approved in advance? I know I can get a report, but is there threshold on my credit report that simply means automated requests for credit through the mobile phone provider will be turned down?

thanks for any help
Philip

You can't find out whether or not you willbe approved in advance but there's next to no chance of you getting one i would have thought 2 defaults!!! bad news, and late payments? It would be a better idea for you not to take on anymore financial strain by the sounds of it sorry.

Tixy

pwl2706 wrote: »

I understand that even a request for credit is reported and added to my credit file and may affect my credit score, regardless of whether it is approved or not?

Am I right in that?

A credit search will appear on your file. It doesn't say whether you were accepted or rejected by the lender.

An application will slightly decrease your 'score' that the credit reference agencies sell to you. But only you and they ever see that number.

Lots of recent applications can put off other potential lenders but one application alone will make little difference, and within a few months will have no impact.

pwl2706 wrote: »

How could I find out definitively whether I would be approved in advance? I know I can get a report, but is there threshold on my credit report that simply means automated requests for credit through the mobile phone provider will be turned down?

thanks for any help
Philip

Nobody can ever know definitively if they will be accepted until they put in an application.
With a recent default on your file then you are fairly unlikely to be accepted.

Do you have an existing phone contract? you might find your existing provider will approve you for a new phone contract without a credit search.

pwl2706

Thanks for your help, I mis-spoke earliear, it was one default but on an agreed overdraft.

I'll roll the dice with the new phone as I haven't made any applications for more than a year.