New Account On Credit Report - Even after Cancelling within 14 days

sanddav

A number of months ago, I decided to try using what I thought was a pay as you go sim card for data. As it turned out, it was a pay monthly account I opened, which included a hard search and a new account on my credit reports (from all credit scoring agencies).

I very early on realized this was not the SIM card for me, and I cancelled the contract within 14 days of opening it (in fact I think it was 5 days) well inside the right to cancel window. I got a refund and I thought all was well, but my credit score was then marked with a "New account" and a "hard search", and this has impacted my score by 7 points on Transunion (more on the others). That credit score points impact is still in effect today (since it says I opened an account in the last 6 months).

Surely, if I cancel within the 14 day grace period this should not be reflected on the credit scores??

CliveOfIndia

Ignore your meaningless score.  It's not used - nor even seen - by any lender.  It's probably just down to timing that it appeared on your report - the phone company happened to submit their report to the CRA just after you'd opened the contract.  It'll drop off in a couple of months - probably accompanied by another drop in your score, since it's a change in your credit circumstances.  But a drop in your score is utterly meaningless.

ForumUser7

sanddav said:

A number of months ago, I decided to try using what I thought was a pay as you go sim card for data. As it turned out, it was a pay monthly account I opened, which included a hard search and a new account on my credit reports (from all credit scoring agencies).

I very early on realized this was not the SIM card for me, and I cancelled the contract within 14 days of opening it (in fact I think it was 5 days) well inside the right to cancel window. I got a refund and I thought all was well, but my credit score was then marked with a "New account" and a "hard search", and this has impacted my score by 7 points on Transunion (more on the others). That credit score points impact is still in effect today (since it says I opened an account in the last 6 months).

Surely, if I cancel within the 14 day grace period this should not be reflected on the credit scores??

A pay monthly contract should action a hard search, as most networks treat it like a credit product. EE for example said to me recently that you get one even if it is just a SIM and not a handset.

As annoying as it is, they are right to keep the hard search on as it is an accurate representation of the fact you applied for a credit product.

That said, the fact that your 'new account' is displayed is a little concerning. As you cancelled the product 'a number of months ago', IMO this account should now be marked as closed. I would suggest you check with your provider, and if they are no help raise a dispute with the credit reference agencies to ask them to consider correcting your file.

Regarding the credit score, fortunately lenders don't see this so it doesn't really matter what it is. They do see your file though, hence the need to get it rectified if it is not already marked as closed.

Your hard search will usually drop off within 12 months from when it was actioned.

Good luck!