Is it possible to have a too good credit rating?

Jonnydeb

I wanted to see if anyone else had encountered a problem in getting credit? 

To put you in perspective I get the top scores on all of the apps etc 
but I recently applied for a Apple interest free loan and got declined.
I went through the usual fob off to speak to Barclays for them to then say look at your credit file and yep there was no problem… on electoral role … never missed a payment … too scores… eventually they said it was ‘unaffordable’ that despite having a Barclaycard with a £20k limit with no balance and a healthy disposable income.

anyway it got me to thinking has anyone else come across a situation where they can’t get credit because I guess the banks don’t want to give it to folk with a too pristine credit rating? 

Ultimately I didn’t need it but still I would have liked to have spread the cost rather than reducing my bank account.

powerful_Rogue

Jonnydeb said:

I wanted to see if anyone else had encountered a problem in getting credit? 

To put you in perspective I get the top scores on all of the apps etc 
but I recently applied for a Apple interest free loan and got declined.
I went through the usual fob off to speak to Barclays for them to then say look at your credit file and yep there was no problem… on electoral role … never missed a payment … too scores… eventually they said it was ‘unaffordable’ that despite having a Barclaycard with a £20k limit with no balance and a healthy disposable income.

anyway it got me to thinking has anyone else come across a situation where they can’t get credit because I guess the banks don’t want to give it to folk with a too pristine credit rating? 

Ultimately I didn’t need it but still I would have liked to have spread the cost rather than reducing my bank account.

The only people that see your credit score are the company you are applying for credit with and yourself. Those scores would look a whole lot different if credit agencies offered credit.

What counts is your credit history. Nothing more, nothing less.

Jonnydeb

powerful_Rogue said:

Jonnydeb said:

I wanted to see if anyone else had encountered a problem in getting credit? 

To put you in perspective I get the top scores on all of the apps etc 
but I recently applied for a Apple interest free loan and got declined.
I went through the usual fob off to speak to Barclays for them to then say look at your credit file and yep there was no problem… on electoral role … never missed a payment … too scores… eventually they said it was ‘unaffordable’ that despite having a Barclaycard with a £20k limit with no balance and a healthy disposable income.

anyway it got me to thinking has anyone else come across a situation where they can’t get credit because I guess the banks don’t want to give it to folk with a too pristine credit rating? 

Ultimately I didn’t need it but still I would have liked to have spread the cost rather than reducing my bank account.

The only people that see your credit score are the company you are applying for credit with and yourself. Those scores would look a whole lot different if credit agencies offered credit.

What counts is your credit history. Nothing more, nothing less.

I get that. But what I guess I am jesting at is have Barclays specifically got a strategy for avoiding giving cheap credit to those they think will repay with no problems and are they even allowed to do that? 

400ixl

It is possible to get refused because you have too much unused credit available. The risk is you get given more, then suddenly use it all and it is unaffordable.

Equally they may see you as non profitable to them and also decline you. You have no right to credit from any organisation.

[Deleted User]

powerful_Rogue said:

Jonnydeb said:

I wanted to see if anyone else had encountered a problem in getting credit? 

To put you in perspective I get the top scores on all of the apps etc 
but I recently applied for a Apple interest free loan and got declined.
I went through the usual fob off to speak to Barclays for them to then say look at your credit file and yep there was no problem… on electoral role … never missed a payment … too scores… eventually they said it was ‘unaffordable’ that despite having a Barclaycard with a £20k limit with no balance and a healthy disposable income.

anyway it got me to thinking has anyone else come across a situation where they can’t get credit because I guess the banks don’t want to give it to folk with a too pristine credit rating? 

Ultimately I didn’t need it but still I would have liked to have spread the cost rather than reducing my bank account.

The only people that see your credit score are the company you are applying for credit with and yourself. Those scores would look a whole lot different if credit agencies offered credit.

What counts is your credit history. Nothing more, nothing less.

Only 50% right, only you see the credit score, lenders never see it, they use their own algorithms / scoring system which produces a result you will never see. The credit score that the agencies show is a gimmick for novelty purposes only

Apple can afford to be picky, quite possible OP has too little credit history for them to want to gamble on a loan - a 20k limit on one card which isn't used very often is less attractive than a 2k limit on a card used a lot and paid in full every month (OP only states they have no balance and never missed a payment). OP would do well to use the card every month for day to day stuff, pay in full and get a phone contract of some kind and pay every month, the usual stuff to build a solid credit history.

bleepbloopblorp

Jonnydeb said:

powerful_Rogue said:

Jonnydeb said:

I wanted to see if anyone else had encountered a problem in getting credit? 

To put you in perspective I get the top scores on all of the apps etc 
but I recently applied for a Apple interest free loan and got declined.
I went through the usual fob off to speak to Barclays for them to then say look at your credit file and yep there was no problem… on electoral role … never missed a payment … too scores… eventually they said it was ‘unaffordable’ that despite having a Barclaycard with a £20k limit with no balance and a healthy disposable income.

anyway it got me to thinking has anyone else come across a situation where they can’t get credit because I guess the banks don’t want to give it to folk with a too pristine credit rating? 

Ultimately I didn’t need it but still I would have liked to have spread the cost rather than reducing my bank account.

The only people that see your credit score are the company you are applying for credit with and yourself. Those scores would look a whole lot different if credit agencies offered credit.

What counts is your credit history. Nothing more, nothing less.

I get that. But what I guess I am jesting at is have Barclays specifically got a strategy for avoiding giving cheap credit to those they think will repay with no problems and are they even allowed to do that? 

Yes, they are allowed to do that.

As an example subprime lenders are unlikely to want to lend to prime customers who repay in full because their business model relies on a certain number of people paying their high interest rates in order for it to work.

I'm not suggesting Barclays Partner Finance is subprime, but they will likely have a target audience for their finance, along with a spread of who they will accept.  If they take on too many "good" customers, they'll just refuse any more until they've balanced it out with "less good" customers.  It's nothing personal, even though many choose to take it that way.

Ignore what Farfetfch says, as Apple is not providing the finance.  They get the money from BPF once the credit is approved, so they don't care if you're a pauper or a prince.

[Deleted User]

bleepbloopblorp said:

Jonnydeb said:

powerful_Rogue said:

Jonnydeb said:

I wanted to see if anyone else had encountered a problem in getting credit? 

To put you in perspective I get the top scores on all of the apps etc 
but I recently applied for a Apple interest free loan and got declined.
I went through the usual fob off to speak to Barclays for them to then say look at your credit file and yep there was no problem… on electoral role … never missed a payment … too scores… eventually they said it was ‘unaffordable’ that despite having a Barclaycard with a £20k limit with no balance and a healthy disposable income.

anyway it got me to thinking has anyone else come across a situation where they can’t get credit because I guess the banks don’t want to give it to folk with a too pristine credit rating? 

Ultimately I didn’t need it but still I would have liked to have spread the cost rather than reducing my bank account.

The only people that see your credit score are the company you are applying for credit with and yourself. Those scores would look a whole lot different if credit agencies offered credit.

What counts is your credit history. Nothing more, nothing less.

I get that. But what I guess I am jesting at is have Barclays specifically got a strategy for avoiding giving cheap credit to those they think will repay with no problems and are they even allowed to do that? 

Yes, they are allowed to do that.

As an example subprime lenders are unlikely to want to lend to prime customers who repay in full because their business model relies on a certain number of people paying their high interest rates in order for it to work.

I'm not suggesting Barclays Partner Finance is subprime, but they will likely have a target audience for their finance, along with a spread of who they will accept.  If they take on too many "good" customers, they'll just refuse any more until they've balanced it out with "less good" customers.  It's nothing personal, even though many choose to take it that way.

Ignore what Farfetfch says, as Apple is not providing the finance.  They get the money from BPF once the credit is approved, so they don't care if you're a pauper or a prince.

So Apple don't tell Barclays the criteria they want to set for who will take out the product? OK.

Looking at your post, it's full of false information so I think we can rest assured who people should look at for advice:

1) Apple is a high end, expensive product, yes finance is expensive but it has to be affordable hence responsible lending rules. Barclays (and thus Apple) get their money and charge interest - the whole point of finance is that EVERYONE has to pay the high interest rates - do you think there is an alternate prime lender giving Apple customers 0% finance??

2) Their target audience is anyone who wants to buy an Apple product on credit who either doesn't want a phone contract or wouldn't buy it outright

3) As above, this is laughably incorrect, you're suggesting Apple just tell Barclays to let anyone at all apply for their products no matter their history.

I can tell you right now, as a firm that sells expensive kit when we have people paying on finance, even though it's all arranged through asset financing companies, we still make sure the person is going to be good for it

400ixl

Apple have always been more restrictive on who they will give finance to and even more so for who can get an Apple Credit card.

phillw

Jonnydeb said:

I get that. But what I guess I am jesting at is have Barclays specifically got a strategy for avoiding giving cheap credit to those they think will repay with no problems and are they even allowed to do that? 

It would be difficult to prove, however people have had credit cards cancelled as as they always paid on time and supposedly the issuer weren't making enough money.

There is no law that would prevent that practice

Grumpy_chap

Jonnydeb said:

I recently applied for a Apple interest free loan and got declined.

eventually they said it was ‘unaffordable’ that despite having a Barclaycard with a £20k limit with no balance and a healthy disposable income.

It is plausible that it was affordability that was the issue.

Possibly also an upper limit to the exposure that Barclays (as the wider organisation) have an appetite for in your case, or any individual case, particularly as this is unsecured lending and at quite a high (potential) value.

Barclays would see that you have the £20k credit, which you could draw down all tomorrow.
Add the extra £2k for the computer.
Barclays may be assessing the affordability and risk based on that total potential exposure of £22k.

[Deleted User]

phillw said:

Jonnydeb said:

I get that. But what I guess I am jesting at is have Barclays specifically got a strategy for avoiding giving cheap credit to those they think will repay with no problems and are they even allowed to do that? 

It would be difficult to prove, however people have had credit cards cancelled as as they always paid on time and supposedly the issuer weren't making enough money.

There is no law that would prevent that practice

This myth needs to die, lenders make more than enough money (typically 25-40% of their income) from merchant fees from spending. Someone who pays in full every month also means less admin / hassle for the bank to not have to chase debts or worry about irresponsible lending complaints from people who spend like it's going out of fashion then complain to the FOS because they got into debt.