Mobile contracts as unsecured loans

Dom_corleone

Hi there, so quick question?
I recently opened a new phone and SIM contract for my daughter (in her name) but attached to my account (I'm paying it). Checking my credit report and this seems to show up as an unsecured loan - is this normal?
I don't have a problem with it really, but I know this wasn't made clear during the account set up in store? Surely there ought to be some requirement for them to specify this, particularly that it could affect a customers credit rating? Especially if this could negatively impact someone without them knowing?

Penguin_

Well it is a loan, as you're paying off a part of the phones value each month.

DullGreyGuy

You took a loan for the phone, why'd you think it wouldn't appear on your credit record seeing as you've had credit?

Dont think any loan has ever explicitly stated that the credit agreement will appear in my credit history. Normally companies are happy to confirm if you ask them but it's a base assumption that credit appears in your history. 

Dom_corleone

Thanks for the replies, and yeah I get it - I'm not surprised it appears on the report as an unsecured loan. It was more about that it wasn't referred to at the point of sale. For someone on the margins of a different credit rating this could have a real world impact for them?

More a point of principle than a grievance... thought there would be some expectation that customers would be advised of how it works, like with buy now, pay later loans? 

BoGoF

Dom_corleone said:

Thanks for the replies, and yeah I get it - I'm not surprised it appears on the report as an unsecured loan. It was more about that it wasn't referred to at the point of sale. For someone on the margins of a different credit rating this could have a real world impact for them?

More a point of principle than a grievance... thought there would be some expectation that customers would be advised of how it works, like with buy now, pay later loans? 

Pretty sure it does tell you and you are digitally signing a credit agreement as part of the process. Could it be a case of skim reading?

savergrant

Dom_corleone said:

Hi there, so quick question?
I recently opened a new phone and SIM contract for my daughter (in her name) but attached to my account (I'm paying it). Checking my credit report and this seems to show up as an unsecured loan - is this normal?
I don't have a problem with it really, but I know this wasn't made clear during the account set up in store? Surely there ought to be some requirement for them to specify this, particularly that it could affect a customers credit rating? Especially if this could negatively impact someone without them knowing?

How old is the daughter? You say that you have taken out a contract 'in her name' and yet it is showing on your credit report (as yours or as soneone you have a financial association with?)
Do you have the legal authority to take out a contract in your daughter's name and did she agree to it?
Did the contract specify that there was a credit agreement involved?