Phone contract application declined, is my credit score the problem?

sian_d18

Hi, I want to take out a phone contract but I have been declined.

I think my credit score is the reason as it is at 248 and that is very poor.

The reason why it's that low is because I was 18 at the time and had completely nothing in my name so I decided to take out a catalogue loan. I was paying it off on time for a few months but then I started paying late then stopped paying all together. It's currently at a balance of around £260 but it's gone to collections and now it's a default on my credit report. I have been wanting to just pay it off in full but even if I did that it will still be on my report. I just regret taking the catalogue loan all together.

Another reason is when I've been signing up for current accounts (the reason why I have multiple bank applications is because I had no ID at the time and they kept telling me I could use my birth certificate, turns out I couldn't as I was 19, so then my application would close as the closing date came around) I do have a bank account now though, I've only recently got my account open.

Another reason is I wasn't registered on the electoral roll, I filled out an application and sent it off recently.

I do check Experian now and again, it says in 3 months my score will boost to 313 but that still isn't enough, I know it takes time to build a high score.

What can I do to build my credit score up? I don't think I can get a credit card, I keep getting declined for phone contracts, I can't even get a sim only. It's my own fault really.

Thank you,
Sian

[Deleted User]

Don't worry about the made up score. It's just a little gimmick for you to enjoy. It's not a factor in lending.

You need to improve your account management.

Get the default cleared. Make sure you're on the ER and try for a sub prime card. If refused, leave it a couple of months then try again.

sleepyjones

You can buy decent phones now for less than £200.

If I were you, I'd just try and buy a phone and get a sim only deal, you'll save yourself so much money. You won't have the latest phone, but something like an Honor will do everything you need it to, I've got an Honor9 and it's great, even has the latest version of Android just now.

sian_d18

Thanks for your advice! What do you mean by improve account management?

[Deleted User]

Run your credit accounts well, such as paying off the default and managing future accounts correctly.

When you have credit, you need to demonstrate you know how to use it responsibly.

macman

Lenders don't see the imaginary score. What they see is your credit history, and the default. With that, at such a young age, multiple applications, and not on the ER, you've not done yourself any favours.
However time will heal all wounds...
Your first priority should be to pay off the debt, not take on more debt with a phone contract that will cost you maybe £750 or more over 2 years?

NutWorld

sian_d18 wrote: »

Hi, I want to take out a phone contract but I have been declined.

I think my credit score is the reason as it is at 248 and that is very poor.

The reason why it's that low is because I was 18 at the time and had completely nothing in my name so I decided to take out a catalogue loan. I was paying it off on time for a few months but then I started paying late then stopped paying all together. It's currently at a balance of around £260 but it's gone to collections and now it's a default on my credit report. I have been wanting to just pay it off in full but even if I did that it will still be on my report. I just regret taking the catalogue loan all together.

Another reason is when I've been signing up for current accounts (the reason why I have multiple bank applications is because I had no ID at the time and they kept telling me I could use my birth certificate, turns out I couldn't as I was 19, so then my application would close as the closing date came around) I do have a bank account now though, I've only recently got my account open.

Another reason is I wasn't registered on the electoral roll, I filled out an application and sent it off recently.

I do check Experian now and again, it says in 3 months my score will boost to 313 but that still isn't enough, I know it takes time to build a high score.

What can I do to build my credit score up? I don't think I can get a credit card, I keep getting declined for phone contracts, I can't even get a sim only. It's my own fault really.

Thank you,
Sian

Can I ask why you started paying late, and then stopped paying altogether?

You say you took that loan out at 18, yet now you are 25
https://forums.moneysavingexpert.com/discussion/6004615/contract-phone-while-on-universal-credit

Why, after 7 years, is the loan still not repaid despite it only being only £268 outstanding, and money you seem to say you could repay immediately???

https://forums.moneysavingexpert.com/discussion/6045834/paying-off-default-account