Failed Credit Check from Carphone Warehouse

sthomson99

I have recently just tried to take out a contract for £30 a month with Carphone Warehouse Currys but my credit check failed and was rejected.

They couldn't tell me why, I have never had any debts etc, but also not owned any credit cards, just direct debits for bills. I also have changed address every year due to work, if this matters?. I graduated in June 2022 and have been working ever since. 

What are the best next steps? Is there a way to found out why it failed/ improve my score? When should I next attempt taking out a contract?

Much appreciated. 

TadleyBaggie

Lack of credit history is almost certainly the root cause, direct debits don't show up on credit files.

First step would get a credit card and use it for some monthly spending, making sure it's paid off in full every month. There is no quick fix.

Brie

Yes - I agree that it's the lack of credit history.  It seems so daft but if you want credit you already have to have credit.

And if you are moving so often that may not help as it may look like an unstable lifestyle - even if it's for a very good reason like moving between uni and home and back or on to work locations.  It also suggests that you may not be registered to vote and being on the electoral register is part of looking like a steady trustworthy individual. 

As noted maybe get a credit card.  You may have to go for one of the ones for people with a poor credit history - Aqua etc - which have ridiculously high interest rates.  That won't matter if you pay it off in full every month.    The alternative is if you have been with any one bank for a few years you could try applying for a card with them.  They will be able to look beyond your credit history and check how you have actually managed your account.  If you have a decent background they are more likely to approve you.  If you dipped into your overdraft regularly as a student but are now all caught up and have a regular healthy balance that's good too.

Nasqueron

Get a SIM only deal, it'll help build a credit record also, some good deals under £20

Grumpy_chap

sthomson99 said:

I have recently just tried to take out a contract for £30 a month with Carphone Warehouse Currys but my credit check failed and was rejected.

They couldn't tell me why, I have never had any debts etc, but also not owned any credit cards, just direct debits for bills. I also have changed address every year due to work, if this matters?. I graduated in June 2022 and have been working ever since. 

What are the best next steps? Is there a way to found out why it failed/ improve my score? When should I next attempt taking out a contract?

Much appreciated. 

Was it Carphone Warehouse Currys that you failed the credit check for, or was it a network provider?  You may not know and it may seem irrelevant, but if it was the network provider, then you don't want to apply for another phone contract with the same network for a while.  You may find better success with another network.  Also, go via a different retailer to be sure.  If you can, leave it a little while before trying again anywhere.

Have you checked your credit files with the main CRA's?  This can be done for free via services such as Credit Karma.  You are not so interested in the credit score but to check the data behind that is correct and error-free.

It is quite possible that your thin credit file is a factor here as it means you have no record of managing credit against which another lender can assess you.  A credit card (that you must pay in full every month) can assist in this regard.  There are also other standard factors that help to gain credit, for example being on the electoral role (also relevant as there is an election coming up later this year so you should register to vote regardless).

Some factors, such as regular house moves, are seen negatively by lenders but you have to live your life and not be ruled by credit assessments.  It is quite common at the start of career to change address with greater frequency than is likely later.

Mobile phone contracts can be quite odd in the strict assessment of credit even though the amount is low.  A suggestion was to go for a SIM-only contract and I do think that is a good idea as they tend to represent good value.  That is no guarantee to get accepted though - the only time I ever had credit refused was a £10 monthly capped SIM-only contract with Vodafone.