Credit refused - a mystery I am unable to resolve

Littleover_Rams

I decided to buy a new desk top computer from PC World. I was tempted by a more attractive one which cost more than I originally intended to spend so decided to take advantage of their 'Buy now pay in six months' offer through Creation credit. I was amazed and embarrassed to find I was refused. I am 61 years old and have always paid all bills on time - I've never had a red bill!. I own my own house. I paid a mortgage for 30 years and never missed a payment. I have income in in excess of £35,000 pa. I have had a number of credit cards over the years which have always been paid on time. I have never had a County Court Judgment. I have always been on the electoral register and have lived at the current address for 24 years. I have since checked my credit score with Experian and I am told it is classed as 'Excellent. I have tried at some length to find out what has gone wrong as I feel there must be an error somewhere but Creation refuse to tell me why I have been turned down. How can I put this right? I am sure that someone somewhere has made a mistake, perhaps a simple keying error, but unless Creation tell me the reason I can do nothing. Will this count against me if I ask for credit again?

[Deleted User]

Don't check your credit scores. Check your credit files.

See what is on all three in case there is an issue.

Littleover_Rams

Thanks for you help. I have a report from Experian which has no issues. What do you mean be all 3?

[Deleted User]

Experian
Call Credit/Noddle
Equifax/Clearscore

The three CRAs hold different information so you should check all three, as Creation may not have exclusively used Experian.

DCFC79

Can't see you being told why you were refused.

National_Debtline

Hi there,


It does seem odd that you were refused based on the credit history you have provided. Is it possible your file is a bit sparse if you haven't had much credit in the last 6 years? If that is the case, it can make it hard to tell whether you would be a good or bad customer due to a lack of history.


When you apply for credit that will normally leave a search mark on your file for 12 months. If you apply for a lot of credit in a short space of time that will leave multiple 'searches' which can be damaging to your history if no credit is awarded.


You seem to be a high earner, as a separate note, is the credit essential or just more convenient? It may be worth considering saving for the item you want on this occasion, rather than using credit, until you have had chance to check all 3 files.


Laura
@natdebtline

Littleover_Rams

Thank you for your help. I have now checked the Noodle report. Again a very high score and no issues. I'm frustrated and concerned that something may be wrong somewhere but I'm tempted just to leave it. I do not really need the credit. It was mainly just for convenience. I will avoid any requests for credit for at least a year.

rtho782

It could just be that, with a good history, they knew you'd likely repay in 6 months and not pay any interest, so not make them any money, so they don't want you as a customer.

mrmagooooooo

rtho782 wrote: »

It could just be that, with a good history, they knew you'd likely repay in 6 months and not pay any interest, so not make them any money, so they don't want you as a customer.

This! More than likely

I've been refused by Creation for a Tablet. Not the end of the world as for the same reasons it was for convenience, but i can however get any other form of credit (that i have applied for since at advertised rates etc)

You just wont make them any money so they dont want you as a customer. (probably):beer:

Fireflyaway

Its a blessing in disguise! You even said you went for a more expensive computer than planned because of the finance deal. Why let these people make money off you? You are not broke or in debt. Save up and buy it cash.

Ben8282

Having quite sensibly made a check of your credit files to make sure that nothing really untoward has somehow appeared on them, I suggest that you stop. Going through your credit files with a fine toothcomb looking for a little something somewhere which could have somehow caused this decline will get you nowhere as you will never find it as it probably doesn't exist.
Which of the credit files actually shows the search from Creation? If a credit report doesn't show the search then you can reasonably assume that that particular credit report hasn't been searched so concentrate only on the credit report(s) which actually show the search. If none of the reports show the search then no search was made.
I don't know why this was refused and speculation will probably get us nowhere. The reason suggested above is a possibility. Alternatively, there could be a problem of perceived unaffordability, particularly if you are already repaying any loans or have large balances on existing credit cards or elsewhere.


I have been looking at this offer from PC world. Are you sure that you really want to bother with it? You only get 6 months interest free and even if you pay in full by the end of the 6 months you will still be charged a £25 'settlement fee'. Now if the computer costs £834 or less it would actually be cheaper to buy with a credit card and use an existing customer balance transfer from another card, even if you pay a full 3% bt fee, to defer the payment for the computer. If you fail to repay in full interest will be at 19.9% after the 6 months which is probably higher than you would be paying even if you used a credit card and actually paid interest on the balance, which you should not normally need to do. If you need 0% finance better to apply for a 0% purchases card, which you may well get.


You ask about any possible negative effects on future credit applications. The only negative effect will be in respect of any credit reports which actually show a hard search for this application. This/these reports(s) will show a hard search which will indicate that a credit application has been made. Nothing more than that. If you were to make lots and lots of applications in a short space of time this could give the impression that you were desperate for credit. A single hard search should have very little, if any, short term effect and no long term effect whatsoever.