Rejected for 0% loan but does not say failed credit check

andy4prop

Hi After any advice ,

so in the past couple of months I've applied for a couple of loans to take advantage of 0% offers. one from Stormfront(Klarna) and one earlier today from Samsung (Paypal Credit) both have check details !! So I don't think the applications have failed the credit check ( I'm on a reasonable salary , credit files show almost perfect ratings no late payments etc. lived at my address for over 20 years and on electoral roll. past loans have all been cleared just have Mortgage and credit cards (paid off every month) My wife also has a similar credit rating.I've spoken to both Klarna and Paypal credit they can offer no reason. What worries me is not actually the fact I've not got this credit but what if I really need some credit in the future and can't get it !

[Deleted User]

What data appears on your files? You say have no late payments, but do you have much of a history?  Do you have too much available credit? Disregard the ratings they give you.

[Deleted User]

andy4prop said:

Hi After any advice ,

so in the past couple of months I've applied for a couple of loans to take advantage of 0% offers. one from Stormfront(Klarna) and one earlier today from Samsung (Paypal Credit) both have check details !! So I don't think the applications have failed the credit check ( I'm on a reasonable salary , credit files show almost perfect ratings no late payments etc. lived at my address for over 20 years and on electoral roll. past loans have all been cleared just have Mortgage and credit cards (paid off every month) My wife also has a similar credit rating.I've spoken to both Klarna and Paypal credit they can offer no reason. What worries me is not actually the fact I've not got this credit but what if I really need some credit in the future and can't get it !

Your credit files will only show that a search was made for an application of credit it will not show whether your application was successful or not.

Nobody you speak with at Klarna or PayPal or any other lender for that matter will ever be able to tell you why an application for credit was unsuccessful.  Very few people within an organisation will have access to that kind of information and you'll never be able to speak with them.

Lenders look at your credit file(s), past dealings with them as a lender, income and affordability when deciding to approve or decline an application.  Something in that mix of that is telling Klarna and PayPal that you're not the type of customer they want.  That doesn't mean to say no other lender will extend credit to you just that these ones won't.  Unless you have something glaringly obvious on your credit files like a lot of recent missed payments, CCJ or insolvency, or you're trying to apply for a £20k loan on a salary of £5k then I don't think you should have much to worry about when applying for a mortgage in the future. 

andy4prop

Deleted_User said:

What data appears on your files? You say have no late payments, but do you have much of a history?  Do you have too much available credit? Disregard the ratings they give you.

Thanks I think I have enough history I’m in my 50’s and there is nothing negative on the reports , the too much available credit is interesting I do have 3 credit cards ( 1 for holidays no foreign fees) they are paid off each month and I can’t remember the last time I paid any interest, so I could probably have about 25k available credit , could that be a reason? 

[Deleted User]

Unlikely, unless your income is very low.

It may be as simple as you not being in their target demographic. 

andy4prop

Deleted_User said:

Unlikely, unless your income is very low.

It may be as simple as you not being in their target demographic. 

Thanks decent income (40% tax) not sure the applications are getting that far! 

Sncjw

Can i be nosy and ask what you were trying to purchase in guessing a product as its klarna. 

mirdragon

I would advise against Paypal credit at the moment, I need to ring them tomorrow as I have a 0% promotional offer through them for something on Samsung store. Paypal have emailed me stating that from 1st July any balances on promotional offers will come under a new 21.9% apr, so effectively an increase from 0% to 21.9% and it seems only way to prevent this is to tell them to close the account.

[Deleted User]

You've misunderstood the email.

Your promotional rate remains unchanged. It's only the go to rate which has changed.

mirdragon

Deleted_User said:

You've misunderstood the email.

Your promotional rate remains unchanged. It's only the go to rate which has changed.

I'm hoping I did misread, but going to confirm tomorrow as the following suggests it will change for any outstanding balance after 1st July.

Any promotional purchases made before 1st July 2021 will remain subject to the applicable promotion’s interest rate and terms, but if these expire after 1st July and are not repaid in full the remaining balance will move to the new interest rate of 21.9% p.a

jjdc

mirdragon said:

Deleted_User said:

You've misunderstood the email.

Your promotional rate remains unchanged. It's only the go to rate which has changed.

I'm hoping I did misread, but going to confirm tomorrow as the following suggests it will change for any outstanding balance after 1st July.

Any promotional purchases made before 1st July 2021 will remain subject to the applicable promotion’s interest rate and terms, but if these expire after 1st July and are not repaid in full the remaining balance will move to the new interest rate of 21.9% p.a

It's exactly as zx81 explained it. If you made a purchase at 0% before 1st July, it will still be 0% for as long as your promotional period. Make a purchase today, and if 0% offer were to expire at end of May, you'd pay 18% or whatever it is from 1st June. From 1st July you'd then pay 21.9%.