Pay4Now Decline ??

Roustabout

I am have been looking to purchase a guitar and have seen one on Anderton's Music online. They even offer 9 month's 0% through a finance scheme called Pay4Now which seems to act like a broker for First Trust bank.

I have applied for this and been declined. I am puzzled because the loan value is to my mind quite small. It is for just over £700.

I would class myself as a fairly good credit risk. No mortgage, never been in an overdraft and I have a Credit Card with NatWest I pay off monthly in full. Also been on Electoral Roll for ages. Income ove just over £35k.

I have checked my file as was suggested by the "decline" page that came up but can see nothing of concern on my Experian file.

I am further puzzled because my nephew who is only 22 has used this scheme for a guitar and also a keyboard and the loan value was nearly double mine and was spread over 18 months not 9. He also has only a part time job and still lives with Mum and Dad and no real credit commitments or credit history.

The firm claim they are a "responsible" lender but by looking at the two contrasting customer profiles here I am suspicious of this.

I have no real burning need for the line of credit as I am pretty liquid cash wise but it just saves the money coming out of my bank and savings in one hit. Plus why not use the 0% if it is there??

I feel quite offended to be fair to the point where Andertons will lose the business. I know the fact that Pay4Now is separate to them as a finance company but they are in a way representing Andertons I feel. The sales rep seemed concerned that I said OK I will buy cash elsewhere then. I could do that with Andertons but I said it was up to them to take the matter of loss of business up with Pay4Now.

Has anyone here had dealings with Pay4Now and successful or unsucessful applications.

CherlokHomes

I've had a few 0% pay laters with Pay4now and they've always been fine.

You've basically failed their credit scoring that's it.

Roustabout

CherlokHomes wrote: »

I've had a few 0% pay laters with Pay4now and they've always been fine.

You've basically failed their credit scoring that's it.

Yes but I am puzzled why.

How can a part time (small income) employed 22 year old living with Mum and Dad be a higher score (and pass their scoring) than a 40 something homeowner with savings no mortgage and £35k income and a totally fine looking Experian record?

Perhaps they want people who might default. Who knows.

CherlokHomes

Perhaps they want people who might default.

No that's what many people like to think when they get declined tomake them feel that little bit better when in reality a customer that doesn't pay back loses that company money.

Now if you think that's how you think a retail finance thinks that's fine.

Roustabout

CherlokHomes wrote: »

No that's what many people like to think when they get declined tomake them feel that little bit better when in reality a customer that doesn't pay back loses that company money.

Now if you think that's how you think a retail finance thinks that's fine.

It's OK I might not be good enough for a poxy firm like Pay4Now but I have just been accepted for Barclaycard 0% for 14 months on purchases. So can buy my Guitar anywhere and anything else I fancy to on the never never from now until next year.

Still puzzled though. Doesn't seem to make sense. Their loss anyway. I am sure Andertons pay them a commission for the finance - how can they run 0% on the retail price an make a profit. So Pay4Now lose a commission and Andertons lose a sale. Now that does make me feel a little bit better!

It's odd I ran the Pay4Now application about 4 times and got the same decline auto response.

Barclaycard gain a customer and a different retailer will benefit. The customer is king after all! :T

Guggul

haha tough luck!

ALIBOBSY

These days companies tend to have a certain demographic they are searching for.

Was this one of those type that if you pay within the set period it is 0%, but if you don't pay by the end date it reverts to an interest bearing loan? If so they they will be looking for someone who will end up paying over a longer period and incur interest.

They won't know how much you have in savings, but they will see how much credit is available on any credit cards you hold. Even if you aren't using it all they see this as "possible debt" and that can effect their decision. But I would say as its retail lending they tend to be aimed at those who wouldn't get other types of credit and you probably don't fit the profile.

Their loss lol.

Ali x

CherlokHomes

ALIBOBSY wrote: »

These days companies tend to have a certain demographic they are searching for.

Was this one of those type that if you pay within the set period it is 0%, but if you don't pay by the end date it reverts to an interest bearing loan? If so they they will be looking for someone who will end up paying over a longer period and incur interest.

They won't know how much you have in savings, but they will see how much credit is available on any credit cards you hold. Even if you aren't using it all they see this as "possible debt" and that can effect their decision. But I would say as its retail lending they tend to be aimed at those who wouldn't get other types of credit and you probably don't fit the profile.

Their loss lol.

Ali x

What a silly post.

What are you on about!!

Are you saying people who choose to walk in to Currys or DFS etc and purchase something on a 0% no interest product are those who couldn't get other types of credit? Pretty sure Brighthouse opened it'd doors to the people you mention.

So Santander retail & barclays partner finance retail etc only cater for those who can't get credit elsewhere?

fevlo

CherlokHomes wrote: »

What a silly post.

What are you on about!!

Are you saying people who choose to walk in to Currys or DFS etc and purchase something on a 0% no interest product are those who couldn't get other types of credit? Pretty sure Brighthouse opened it'd doors to the people you mention.

So Santander retail & barclays partner finance retail etc only cater for those who can't get credit elsewhere?

I think what Alibobsy is trying to say is that Pay4Now may be looking for the more "profitable" customer. I.e. those that may take the loan beoynd the 0% period and therefore pay back intrest as well as the capital. (Not that they should be doing this ofcourse)
It all depends if the finance was Buy Now Pay Later or a Loan agreement.
I know when I had a 0% BNPL deal with DFS, I could choose not to pay back when the deal expired and go onto month payments where the loan was intrest bearing.

The OP was declined simply becase he/she didnt fit the profile the lender is looking for.
This may not be due to adverse credit and we will never find out why.
There is information missing, such as ratio of debt to income, Percentage of credit being used ect and factors such as savings wont have any bearing on the lenders decision

CherlokHomes

fevlo wrote: »

I think what Alibobsy is trying to say is that Pay4Now may be looking for the more "profitable" customer. I.e. those that may take the loan beoynd the 0% period and therefore pay back intrest as well as the capital. (Not that they should be doing this ofcourse)
It all depends if the finance was Buy Now Pay Later or a Loan agreement.
I know when I had a 0% BNPL deal with DFS, I could choose not to pay back when the deal expired and go onto month payments where the loan was intrest bearing.

The OP was declined simply becase he/she didnt fit the profile the lender is looking for.
This may not be due to adverse credit and we will never find out why.
There is information missing, such as ratio of debt to income, Percentage of credit being used ect and factors

such as savings wont have any bearing on the lenders decision

may be looking for the more "profitable" customer. I.e. those that may take the loan beoynd the 0% period

Now I get it. I take it then anyone who gets offered a 0% credit card only offers this to a person they believe is not going to pay back their card within the 0% period then?

DaveTheMus

Roustabout wrote: »

So Pay4Now lose a commission and Andertons lose a sale. Now that does make me feel a little bit better!

You really showed them......I bet they'll rue the day they tangled with you..