I don't understand credit ratings....

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I don't understand credit ratings....

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Minamoo

Joined: 05 Feb 2008
Posts: 1231

Posted: Fri Dec 09, 11 3:52 pm Post subject: I don't understand credit ratings....

I just tried to apply for financing to buy a laptop so that I can pay for it in monthly installments instead of all at once. It was 0% so I thought it would be a sensible thing to do. But then they declined me credit. Given that I have no overdraft (actually I do have a free overdraft...I've just not used it), pay off my cards every month, have huge maximum limits on my 2 store cards and credit card that I have not used any of/am well below the limit on. And DH and I own our house and I have a healthy account history and have never been in debt (other than the usual student overdraft and credit card splurges/emergencies).I don't understand why this has happened.

The only thing I can think of is one booboo involving T-mobile that was sorted out in July 2010. I had opened an account in 2003 and been paying everything fine since. I then moved house and thought i'd cancelled the contract when I went to another provider but all i cancelled was the direct debit. 2010 was when I got a random phone call from a debt collection agency guy who claimed i'd defaulted etc etc. I paid the balance off there and then and he said that he'd remove this from my credit report and it shouldn't affect future applications.

I just checked my credit report on experian though and it's 999. So apparently it can't get any better than that. So why would I have been declined? I phoned the experian people and they said that one thing that might make the situation clearer is if I update my addresses for the last 6 years. Which I've now done and the changes will be updated overnight.

Any ideas on what I could do now?

NorthernMonkeyGirl

Joined: 10 Apr 2011
Posts: 4630
Location: Peeping over your shoulder

Posted: Fri Dec 09, 11 4:23 pm Post subject:
Ahhh I bet your problem is you're TOO good. You don't make them any money if you pay off all your bills and never spiral into debt with late fees and interest and compound fees....

alice

Joined: 18 Feb 2006
Posts: 2820

Posted: Fri Dec 09, 11 4:28 pm Post subject:

NorthernMonkeyGirl wrote:

Ahhh I bet your problem is you're TOO good. You don't make them any money if you pay off all your bills and never spiral into debt with late fees and interest and compound fees....

That's how I understand it too.
As far as a lender is concerned a good credit risk is someone who borrows lots, borrows often, takes forever to pay it back but never actually defaults.

Minamoo

Joined: 05 Feb 2008
Posts: 1231

Posted: Fri Dec 09, 11 4:29 pm Post subject:

NorthernMonkeyGirl wrote:

Ahhh I bet your problem is you're TOO good. You don't make them any money if you pay off all your bills and never spiral into debt with late fees and interest and compound fees....

Lol! That's what I get for being a goody two shoes.

vegplot

Joined: 19 Apr 2007
Posts: 21301
Location: Bethesda, Gwynedd

Posted: Fri Dec 09, 11 5:28 pm Post subject:
I didn't have a credit rating for years as I didn't have an overdraft, loan, or credit card, or mortgage. I was turned down for a store card trying to get 10% of something.

Hairyloon

Joined: 20 Nov 2008
Posts: 15425
Location: Today I are mostly being in Yorkshire.

Posted: Sat Dec 10, 11 2:39 am Post subject: Re: I don't understand credit ratings....

Minamoo wrote:

I just tried to apply for financing to buy a laptop so that I can pay for it in monthly installments instead of all at once...

You've seen this?
Easy pay credit terms are not beyond the realms of possibility (but no, you can't pay me in eggs

Nick

Joined: 02 Nov 2004
Posts: 34535
Location: Hereford

Posted: Sat Dec 10, 11 3:14 am Post subject:
Its simple. You've never borrowed money and paid it back making them a profit. Why should they lend you some now?

Minamoo

Joined: 05 Feb 2008
Posts: 1231

Posted: Sat Dec 10, 11 2:40 pm Post subject: Re: I don't understand credit ratings....

Hairyloon wrote:

Minamoo wrote:

I just tried to apply for financing to buy a laptop so that I can pay for it in monthly installments instead of all at once...

You've seen this?
Easy pay credit terms are not beyond the realms of possibility (but no, you can't pay me in eggs

Thanks for the link. Unfortunately what I need is more powerful and lighter than that cos of Joni work. I use some fairly CPU intensive programs at the same time.

It really sucks that even though I've got no debt , I'm seen as not being debt worthy. Makes absolutely no sense but that's capitalism for you!

Hairyloon

Joined: 20 Nov 2008
Posts: 15425
Location: Today I are mostly being in Yorkshire.

Posted: Sat Dec 10, 11 3:00 pm Post subject: Re: I don't understand credit ratings....

Minamoo wrote:

Thanks for the link. Unfortunately what I need is more powerful and lighter than that cos of Joni work.

Joni work?

Paul Sill

Joined: 16 Jan 2009
Posts: 118

Posted: Sat Dec 10, 11 3:54 pm Post subject:
Have you tried a company like Zopa?

Treacodactyl
Downsizer Moderator

Joined: 28 Oct 2004
Posts: 25795
Location: Jumping on the bandwagon of opportunism

Posted: Sat Dec 10, 11 4:14 pm Post subject: Re: I don't understand credit ratings....

Minamoo wrote:

Any ideas on what I could do now?

Did the shop do the check properly, did they spell your name correctly and get your current address and postcode correct? It could be a case of user error.

I'm not sure if these 0% deals are there to make anyone any money so I doubt you were turned down because you were likely to pay it off. If there's a horrendous penalty in the small print for missing a payment you probably don't want the deal anyway.

Perhaps the shop has run out of money for the 0% deal, so they are advertising it but not actually making any agreements?

Minamoo

Joined: 05 Feb 2008
Posts: 1231

Posted: Sun Dec 11, 11 12:49 am Post subject: Re: I don't understand credit ratings....

[quote="Treacodactyl:1195043"]

Minamoo wrote:

Any ideas on what I could do now?

Did the shop do the check properly, did they spell your name correctly and get your current address and postcode correct? It could be a case of user error.[quote]

That could well be the case. They had only 5 options for employment category; employed, self-employed, houseperson, retired or unemployed. I am a student so I put that I'm employed by the university as a phd researcher. So they could have checked payroll, not found me, and decided not to give it to me. Or it could be that I wrote that I had only one credit card, forgetting about the two store cards I have which are also credit cards.

Quote:

Perhaps the shop has run out of money for the 0% deal, so they are advertising it but not actually making any agreements?

Maybe but it seems highly unethical and it's a big company who I want to buy it from.....That having being said, the big companies can be the worst at screwing the little guys over. Like my delightful experience with Movember.

12Bore

Joined: 15 Jun 2008
Posts: 9089
Location: Paddling in the Mersey

Posted: Sun Dec 11, 11 8:47 pm Post subject: Re: I don't understand credit ratings....

[quote="Minamoo:1195118"][quote="Treacodactyl:1195043"]

Minamoo wrote:

Any ideas on what I could do now?

Did the shop do the check properly, did they spell your name correctly and get your current address and postcode correct? It could be a case of user error.

Quote:

That could well be the case. They had only 5 options for employment category; employed, self-employed, houseperson, retired or unemployed. I am a student so I put that I'm employed by the university as a phd researcher. So they could have checked payroll, not found me, and decided not to give it to me. Or it could be that I wrote that I had only one credit card, forgetting about the two store cards I have which are also credit cards.

Quote:

Perhaps the shop has run out of money for the 0% deal, so they are advertising it but not actually making any agreements?

It was almost certainly the student job description, most retail finance companies will not accept or even process applications from students, in fact, I don't think that they are allowed to, certainly non of the companies I've dealt with in 30 years of retailing would accept applications from students. Try again, but describe yourself as a researcher.

Minamoo

Joined: 05 Feb 2008
Posts: 1231

Posted: Mon Dec 12, 11 9:39 am Post subject:
Ah well...it's ok. I asked Dh to buy it for me on the financing thing and I'll pay him back every month. Seemed easiest.

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