Why was I accepted for a new contract?

stator

Usually this forum has people moaning they've been rejected for credit

No-one knows the formula they use to calculate these things. A long time ago before I knew how these things worked I got rejected by about 20 credit card companies and then the last one accepted me, inspite of the huge number of searches on my credit card. Just got lucky I suppose!

NVRAM

£51 a month? Jesus wept!

By already thinking that they are a irresponsible lender and jumping on that bandwagon, are you planning on doing a runner with the handset and shouting "IRRESPONSIBLE LENDER" from the rooftops until they cancel it?

Nasqueron

I don't understand why, if you consider yourself such a risk, you took out a £51 a month contract - why not get one of the basic SIM only deals without a contract - if you have money issues why get such an expensive contract?

I was looking at contracts yesterday, comparing monthly cost vs upfront cost of phone and overall, for example on EE 4g with the Samsung Galaxy Alpha if you can do the £270 upfront cost, the £22 a month deal works out far cheaper than paying say £70 upfront for a £40+ a month deal

Voltron

Looks like he wanted unlimited data and unlimited calls on an iPhone 6+, not an Android phone.

It's a lot of money given the history of paying back phone bills, I'm not convinced there couldn't have been a better way about it personally.

Nasqueron

Voltron wrote: »

Looks like he wanted unlimited data and unlimited calls on an iPhone 6+, not an Android phone.

It's a lot of money given the history of paying back phone bills, I'm not convinced there couldn't have been a better way about it personally.

Was just quoting an example of a premium phone - the same principle will probably apply to iphone

It is not advisable surely to sign up for a £51 a month contract for 2 years (total cost £1224) for the top end package when you had issues paying before.

Voltron

Nasqueron wrote: »

Was just quoting an example of a premium phone - the same principle will probably apply to iphone

A premium Android phone is generally still quite some distance from the iPhone 6+ - it's almost £200 cheaper to buy the Galaxy outright.

On EE you could pay £310 upfront for the 6+ then £31 a month for the tariff, but they only give you a measly 500mb data on this.

To stick with Three, the equivalent data plan that he went for SIM only is £25/month plus the outright handset cost, compared to £51/month with £99 for the handset

(24x £25) + £620 = £1,220
or
(24x £51) + £99 = £1,323

There's really not that much saving to be had choosing to buy the handset outright really, when you pace it over 2 years, so the deal itself isn't terrible - it's just whether he's put plans in place to make sure he can actually afford it this time. Something we're both in agreement about

fozmcfc

I know 2 people who have phones and tablets with 3, both have awful credit ratings, due to numerous defaults, arrangements to pay and missed payments on their credit files. Including several current agreements.

I've also known a couple of people who I have worked with in the past, who have gone with a certain provider, because they have defaults outstanding with other companies.

In my experience mobile phone companies, can be less stringent who they give contracts to.

It's a bit like Payday lenders, if they refuse, you know that your credit rating is below poor.

Nasqueron

Voltron wrote: »

A premium Android phone is generally still quite some distance from the iPhone 6+ - it's almost £200 cheaper to buy the Galaxy outright.

On EE you could pay £310 upfront for the 6+ then £31 a month for the tariff, but they only give you a measly 500mb data on this.

To stick with Three, the equivalent data plan that he went for SIM only is £25/month plus the outright handset cost, compared to £51/month with £99 for the handset

(24x £25) + £620 = £1,220
or
(24x £51) + £99 = £1,323

There's really not that much saving to be had choosing to buy the handset outright really, when you pace it over 2 years, so the deal itself isn't terrible - it's just whether he's put plans in place to make sure he can actually afford it this time. Something we're both in agreement about

Yeah it's why I avoid Apple products, stupid premium for the name and last couple have been behind the main 3 android phone makers in tech so seems silly to pay more for less lol. Even my bank free phone insurance has a £30 excess for phones but it's £100 for iphones.

The EE deals I was looking was 2gb data, 1000 mins, unlimited texts double speed 4g tweaked to use iphone 6+

On a £22/month deal with the iphone 6+ 64gb, 579.99 phone cost = 1131.75 total
Vs £43.99/month + 289.99 phone = 1345.75 total - fairly major saving

Armorica

I didn't pass a credit check from 3 - there processes are odd. (There was a marker from O2 on my account that showed as an open query after they allowed identity theft on my account - rating agency said it wasn't a default and that lenders shouldn't read it negatively..yet 3 did)

I bought the phone with cash instead and have a rolling one-month sim-only contract.

arminb

I wouldn't say i can't afford the contract since I get 1200 pounds a months and pay 440 for my rent and bills etc... And the rest is just for me.
The only reason I made this thread is because I read something on the Guardian regarding Wonga having to return the debts of 330k customers because of irresponsible lending. I just thought maybe Three is also an irresponsible lender who gives credit to people who cant afford to pay it back.

To be fair I think a 1/5 credit rating was rather cruel. I missed my payments a couple of times but I was never more than 200 pounds and never went to court or something. I didnt pay the bills not because of an inability to pay but because of being disorganised. My bank didnt let their direct debits to go through and I didnt bother to pay by debit card until they blocked my sim or sometimes I spent all the money clubbing or sometimes went to holidays for 2-3 months and there was no money in my bank account. Above all, I DID NOT even know that such thing as credit rating exists until 2weeks ago when I was not allowed for a new contract with EE and they explained it to me. If I knew I surely would have been more responsible.