Apple / Barclays loan

ZimDee

Hi - I recently applied for the interest free loan for a new iPhone on the Barclays / Apple offer but was declined, I have a good credit rating, no debts, or missed payments. I have been in same job and lived in same property for last 6 years so I don’t know why I was declined. I spoke to both Barclays and Experian to see why and neither could tell me. Does anyone know how I can find out the reason. I am worried it may affect any future applications I may need to make in the future. Thanks 

Isthisforreal99

You won't be told the specific reason.

However, how do you know your credit rating is 'good' - ignore what the credit reference agencies rate you as.

You say no debt? Credit history is built on having debt and managing it well, is there any agreements that appear on your credit file? It may be lack of credit history that is the problem.

CliveOfIndia

As above, you won't be told the reason you were declined - simply, you don't meet their lending criteria (which no-one can know, as they're confidential and commercially sensitive).

A "thin" credit file can often be a factor, since the lender has very little historical data to go on.

ZimDee said:

I am worried it may affect any future applications I may need to make in the future.

The result of a credit application - accepted or declined - is not recorded.  All that is recorded is the fact that a hard search was performed.  A single search is of no consequence - it's when you have several searches in a short space of time that it starts to make lenders suspicious.

If you can't afford the latest and greatest gadget without relying on credit, then go for a much cheaper alternative that you can afford to buy outright.  There are some things in life that are essential, but a new iPhone is most definitely not one of them.

Desmond_Hume

CliveOfIndia said:

As above, you won't be told the reason you were declined - simply, you don't meet their lending criteria (which no-one can know, as they're confidential and commercially sensitive).

A "thin" credit file can often be a factor, since the lender has very little historical data to go on.

ZimDee said:

I am worried it may affect any future applications I may need to make in the future.

The result of a credit application - accepted or declined - is not recorded.  All that is recorded is the fact that a hard search was performed.  A single search is of no consequence - it's when you have several searches in a short space of time that it starts to make lenders suspicious.

If you can't afford the latest and greatest gadget without relying on credit, then go for a much cheaper alternative that you can afford to buy outright.  There are some things in life that are essential, but a new iPhone is most definitely not one of them.

 Seems a bit presumptuous to assume they can’t afford it. I’d probably opt for interest free as well if it’s available. Keep the cash in the bank and use someone else’s money, for free. 

MyRealNameToo

ZimDee said:

Hi - I recently applied for the interest free loan for a new iPhone on the Barclays / Apple offer but was declined, I have a good credit rating, no debts, or missed payments. I have been in same job and lived in same property for last 6 years so I don’t know why I was declined. I spoke to both Barclays and Experian to see why and neither could tell me. Does anyone know how I can find out the reason. I am worried it may affect any future applications I may need to make in the future. Thanks 

Decision to accept or not is commercially sensitive and owned by the particular part of Barclays. No lender will give explicit reasons as this would in theory allow others to work out what their rules by making enough applications and either 1) its a competitor and they can workout how to do get the customers they want but Barclays are currently winning or 2) its a bad actor who can workout how to game the process 

Other lenders will only see a hard search for credit was made, they will have no idea if you received an offer or were declined. Clearly they will see no knew credit account was opened but that could also be because you didnt accept their offer. 

I've had poor experience with Barclays via Apple too. Amusingly I'd logged into Barclays to double check account details for the anticipated DD before applying and saw they had a "you've been preapproved for a personal loan of up to £50,000", then applied for credit via Apple and got a decline. Clearly the two parts of Barclays have materially different criteria from each other!

ZimDee

Thank you for your responses, they have . I have a couple of credit cards that I use for day to day spend and trips abroad but these are paid off every month. I just wanted to loan as it’s interest free and would rather keep the money to earn a bit of interest. 

flaneurs_lobster

MyRealNameToo said:

I've had poor experience with Barclays via Apple too. Amusingly I'd logged into Barclays to double check account details for the anticipated DD before applying and saw they had a "you've been preapproved for a personal loan of up to £50,000", then applied for credit via Apple and got a decline. Clearly the two parts of Barclays have materially different criteria from each other!

I too was turned down for a similar interest-free device loan device despite having an authorised overdraft limit at Barclays that would have covered the amount of the loan twice over and then some.

Isthisforreal99

ZimDee said:

Thank you for your responses, they have . I have a couple of credit cards that I use for day to day spend and trips abroad but these are paid off every month. I just wanted to loan as it’s interest free and would rather keep the money to earn a bit of interest. 

Just to be clear, you are paid off in full after the statement has been generated.....and not before?

Brie

ZimDee said:

Thank you for your responses, they have . I have a couple of credit cards that I use for day to day spend and trips abroad but these are paid off every month. I just wanted to loan as it’s interest free and would rather keep the money to earn a bit of interest. 

It's not just the debt on credit cards that may be taken into account.  It can be how high the credit limits are, whether you have an overdraft.  Doesn't matter if you aren't using that credit - they have to assume you might go on a spending spree and max everything out.  Add to that any other credit you might have - car or house insurance paid monthly, car finance, mortgage etc.  And then compare that to income. 

For instance our household have credit cards etc including a flexi mortgage which means we have well over £100k credit available.  But our income is a small fraction of that so nobody is going to be rushing to lend us money.  Doesn't matter that there's tons of savings as well - most of that is invisible to lenders.  

born_again

ZimDee said:

Thank you for your responses, they have . I have a couple of credit cards that I use for day to day spend and trips abroad but these are paid off every month. I just wanted to loan as it’s interest free and would rather keep the money to earn a bit of interest. 

If you pay them off or not. It is available credit & will affect your affordability.