Refused new mobile/broadband contracts despite perfect credit score

brenpat

Hi Guys,

I'm trying to reduce my monthly costs, so have been using this site to locate good deals on broadband and mobile phone contracts.

I have applied for a new broadband deal with Vodaphone, and a new mobile phone contract with iD mobile. Both were deals I found through the MSE site and were supposed to come with a voucher part-way through the contract, which reduces the effective monthly cost.

Both the broadband and the mobile contacts were refused based on a failed credit check. However, I have a perfect credit score. The MSE credit club shows I have had a score of 999 for several years - all the smiley faces are green. I own my home, and have been here for 10 years, I've been employed by the same company for 13 years, have no CCJs and no debt beyond my mortgage - which has always been paid on time.

I contacted Vodaphone about this and they had no ideas except "try again but make sure you use the correct bank details". I did try again - but no joy.

My partner was able to able to arrange a new broadband account for us using the same deal on the MSE site, and it went through without a hitch.

There's clearly something wrong with my credit rating, but I'm at a loss as to what it could be.

Does anyone know how I can fix this?

Cheers,

B

cymruchris

First step would be to check the data on all three of the main credit reference agencies to ensure it's accurate. You've mentioned you've looked at the MSE credit club - have you looked at the others too?

Do you have regular existing credit card accounts in your name even if you have 'no debt'? Is your mortgage on your credit file? Are you on the electoral roll? 

Having a score of 999 doesn't really mean anything, and nobody sees that except you, so don't put too much weight on that. 

Ebe_Scrooge

brenpat said:

However, I have a perfect credit score. The MSE credit club shows I have had a score of 999 for several years - all the smiley faces are green

Which just goes to prove what is said time and again on this forum - your score means absolutely nothing.

As above, check all 3 of your credit files to make sure there is nothing untoward showing.

It's possible that the CRA which VF are using doesn't contain your mortgage - not all lenders report in to all 3 CRAs.  Having a thin or non-existent credit history can be almost as bad as having a bad history.  Is the mortgage in joint names, or only in your partner's name?

brenpat

I've checked my experian and equifax credit scores and they look fine. I have a high score in both (appreciate this isn't the best indicator) and am green across every category. The only exception being a warning that I used my credit card to take cash out in the past 3 months. This was me accessing Euros while on holiday, using my Clarity card - a financially sensible thing to do as I paid it off immediately!

I've been on the electoral register for 9 years, my mortgage is correctly shown on both credit reports; I have one financial associate (my evil half) and all her credit scores & properties are all similar/better than mine. Our mortgage is joint, and the monthly payments are a small fraction of our income - we've never missed a mortgage payment.

The one thing that looks a bit strange is my address. I live in apartment 5, the building is number 30. On my report, the address has been captured as: "apartment 5 30, Smith Street" (i.e., the comma is in the wrong place). Could that be enough to fail a credit check?

The only other thing I can think of is that I have several credit cards which I haven't used in years. The total amount of credit available to me is pretty substantial (~£40k) but I have <10% utilisation - which shows up as a positive on my CR.

The Equifax FAQ says that they can't advise on failed credit checks - and point me to the lender. iD mobile have said that they can't help - but did confirm that they use Equifax for their credit checks.

Feels like I'm stuck in credit agency limbo here!

Ebe_Scrooge

brenpat said:

I've checked my experian and equifax credit scores and they look fine. I have a high score in both (appreciate this isn't the best indicator) and am green across every category.

Not only is your score not "the best indicator", it's no indication whatsoever as to how a lender will view you.

brenpat said:

The only exception being a warning that I used my credit card to take cash out in the past 3 months. This was me accessing Euros while on holiday, using my Clarity card - a financially sensible thing to do as I paid it off immediately!

This won't be an issue.  Regularly withdrawing cash at home is a massive red flag, but sporadic use abroad (especially, as you say, to take advantage of favourable exchange rates) is no problem at all.

brenpat said:

The one thing that looks a bit strange is my address. I live in apartment 5, the building is number 30. On my report, the address has been captured as: "apartment 5 30, Smith Street" (i.e., the comma is in the wrong place). Could that be enough to fail a credit check?

Maybe ... possibly.  If they're interpreting that as "Flat number 530", which doesn't exist, then it may be an issue.  Unlikely, but a possibility.  What's the address on your partner's file?

brenpat said:

The only other thing I can think of is that I have several credit cards which I haven't used in years. The total amount of credit available to me is pretty substantial (~£40k) but I have <10% utilisation - which shows up as a positive on my CR.

Do you have any credit cards that you use regularly?  If not, that may be the problem - simply a lack of historical data for them to make a decision.

brenpat said:

The Equifax FAQ says that they can't advise on failed credit checks - and point me to the lender. iD mobile have said that they can't help - but did confirm that they use Equifax for their credit checks.

This is correct.  The CRA don't make lending decisions, they simply report the data to the lender, and the lender churns the data through their systems, and "computer says no" ... or "yes". Each lender will have different criteria, so there's no way the CRA can predict whether you'll be accepted by one lender or another.

And, because each lender's criteria are confidential and commercially sensitive, they'll never tell you why you failed their credit check.  If they did, it would be fairly simple to "play the system" and virtually guarantee acceptance.

Since it seems that your immediate problem is solved (your partner managed to get broadband), there's two things you can do to help matters in the future.  First, see if you can get your address corrected (like I say, it may not be a huge issue, but there's nothing lost by making sure it's correct).  Second, try and use a credit card regularly.  Doesn't matter how much you spend, just the weekly food shop or a tank of petrol every fortnight, whatever.  But use it regularly, make absolutely sure you pay the balance in full every month when the statement drops through your letterbox.  This is the simplest way of building a good credit history - and, since you're paying in full every month, it will cost you not one penny in interest.