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65 & unable to get credit
I'm 65 years old & recently tried to purchase an Apple Iphone on their 0% finance scheme, but my application was refused (& has been subsequently refused after trying again through John Lewis, was told I don't meet their internal lending criteria, but no further explanation) I am married, retired, mortgage free, living on my Barclays pension, our joint monthly income is good. Having checked my credit score with Experian, it tells me it is good. I don't own a credit card & have no other debt. I could afford to purchase the phone outright if so needed, but I wanted to spread the payments as it would avoid a large cash outlay. Can anyone advise as to why this is happening, as I have to admit, when they declined my application in store & recently online, it left me feeling quite worthless & very upset 😔
Comments
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Credit score means nothing to lenders, they never see it. It is credit history & affordability that count.
Life in the slow lane1 -
Not having a credit card is a distinct disadvantage when applying for other sorts of credit as is one of the best ways to build up a good credit history and with no other dept your credit history is likely to be blank and the reason you have been refused.
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Do you qualify for 0% Purchase credit card?
That might be an option.
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The credit score can be ignored, it's usefulness you have already had demonstrated.
Do you have any credit agreements, like PAYM mobile phone contracts in your name?
Are you paying for your utilities by monthly direct debits, again in your name?
Been at current address for a year or more? On electoral register?
If none of these, likely to be the absence of a credit history. Lenders like to see that an individual can make regular repayments to service a debt (they like it when another lender is already lending).
If you want to build such a history then get yourself a credit card - there are cards that are designed for those with little or no credit history or maybe try the no-commitment credit card eligibility tests on the MSE site
or consider applying at your own bank.
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I have a pay monthly SIM only, some utilities in my name, been at current address 24 years & definitely on electoral register. I have considered a credit card, 0% on purchases, but not sure. It just really upset me in a funny way, felt awful when I left the store, little tearful (perhaps some people might think that's a bit of an over-reaction) Hey ho, onwards & upwards 😊
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The finance world is littered with 'unaffordable lending' claims now.
Flip your finance request around, and they would have provided finance to someone who doesn't work, and won't work again.
They do provide finance to people who don't work of course, but the risk is leveraged, so the algorithm will be more cautious.
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Can well understand your reaction, no-one like to 'fail' at any test and this kind of 'worthiness' examination can be quite affecting. Could be that the checks around mobile phones can be rather strict, you'd probably have a better result borrowing xx times more for a washing machine or sofa!
Please don't take it personally, computers innit!
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Like @flaneurs_lobster says, really don't take it personally!
Arguably those in positions such as yours end up being seemingly punished for having kept your financial life simple and straightforward, and having resisted the urge to swim in the murky lake of consumer credit - lenders are looking for past evidence that you've stayed afloat in said lake, but plenty have struggled and some have sunk - there are those who might say it's a wiser choice not to have jumped in at all!1 -
was told I don't meet their internal lending criteria, but no further explanation)
That happens to a lot of people, regardless of age or status. Companies have target markets and because you are not in that cirterion is not a negative reflection on you.
Having checked my credit score with Experian, it tells me it is good.
Well unless Experian are lending you the money, their opinion is irrelevant.
I could afford to purchase the phone outright if so needed
Then consider doing that. Problem solved!
Can anyone advise as to why this is happening, as I have to admit, when they declined my application in store & recently online, it left me feeling quite worthless & very upset 😔
Nobody can tell you the reason for the decline as lenders do not publish their lending criterion (So that applicants cannot manipulate it) - although if you have a thin history of borrowing (ie managing debt) that might explain it.
And there is really no reason to let it get you down. It is not the end of the world. In fact, it is really insignificant and, as previously stated, not a reflection on you.
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How is consumer credit "a murky lake"?
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