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deadman

I've Been Refused Credit.

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I fancied a new mountain bike last week and saw some companies offering 0% finance so thought to keep the money in the bank, pay a 10% deposit and take advantage.

As title. I was refused. Oh keep the stinking bike I'll buy one cash!

Registered with Credit Expert (worried and annoyed).

Logged in.

Credit score = 999.

I have £3000 of (5.9% apr) outstanding debt that will be cleared by the end of the year.

And that's it.

On the electoral roll, green dots across the board and strangely no credit check registered in the last 12 months.

I'm at a loss.

I'm beginning to wonder if I filled in the application wrongly?

Any thoughts?

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I fancied a new mountain bike last week and saw some companies offering 0% finance...

...Any thoughts?

It got you through the door, didn't it? ;)

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The lender probably looked at your record and came to the conclusion that you'd pay the loan off during the 0% period, meaning that they'd make a loss on the deal. Their ideal customer is someone who is always in significant but not unsustainable debt, and therefore is making regular interest payments to lenders.

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The lender probably looked at your record and came to the conclusion that you'd pay the loan off during the 0% period, meaning that they'd make a loss on the deal. Their ideal customer is someone who is always in significant but not unsustainable debt, and therefore is making regular interest payments to lenders.

Really? Is that how they operate?

Jesus there's really no hope for unworthy buggers like me, paying off my debts in full and on time :o

Cheers people. I'm still very bemused though.

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No way the lender would make a "Loss" on the deal!

0% Interest deals in fact carry normal commercial rates of lending: it's just that the retailer ups the price to cover the cost involved.

Always better, normally, to ask what the retailer will take for the goods for cash: particularly now!

On a "Free Interest" deal in any case, the retailer has usually given up their finance commission too.

Can often be better to pay for the goods with a Credit Card cheque: and then do a balance transfer. Right now, for example, HSBC are offering 15 months at zero interest, with a 2.9% transaction fee for any balance T/Fs.

And the other benefit of properly utilised Creidt Cards is this financing isn't Rule of 78: i.e. it isn't Front Loaded, thus the borrower can settle the outstanding balance early, with no penalty.

http://en.wikipedia.org/wiki/Rule_of_78s

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Really? Is that how they operate?

Jesus there's really no hope for unworthy buggers like me, paying off my debts in full and on time :o

Cheers people. I'm still very bemused though.

You should remember that these online credit companies (usually run by either Experian or Equifax) do not update their data with retailers as much as they might say they do. In other words, the credit score you can see on the site and the credit score the retailer receives may be quite different.

I'd suggest you have two options:

1. If you're feeling really peeved, print out the score on the site and show it to the retailer. If there is a discrepancy, get a printout of the retailer's information on you and submit it to the Information Commissioner's Office to make a complaint. They will send you back a form and eventually after some dialogue, you will probably get a decision in your favour (that the credit reference agency did not process your data accurately and therefore illegally) and you can offer to settle with the agency out of court - for the price of the bike maybe!

2. Second option is show the score to the retailer and ask what the problem is. They will almost certainly want to sell you the bike because a sale at 0% is still better than no sale!

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No way the lender would make a "Loss" on the deal!

0% Interest deals in fact carry normal commercial rates of lending: it's just that the retailer ups the price to cover the cost involved.

Always better, normally, to ask what the retailer will take for the goods for cash: particularly now!

On a "Free Interest" deal in any case, the retailer has usually given up their finance commission too.

Can often be better to pay for the goods with a Credit Card cheque: and then do a balance transfer. Right now, for example, HSBC are offering 15 months at zero interest, with a 2.9% transaction fee for any balance T/Fs.

And the other benefit of properly utilised Creidt Cards is this financing isn't Rule of 78: i.e. it isn't Front Loaded, thus the borrower can settle the outstanding balance early, with no penalty.

http://en.wikipedia.org/wiki/Rule_of_78s

It was admittedly at 'RRP' but it wasn't available at anything other than that on any other site.

I don't have any credit cards and really couldn't bring myself to get one. Cleared one a number of years ago and don't want to go back to it.

Cheers though.

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You should remember that these online credit companies (usually run by either Experian or Equifax) do not update their data with retailers as much as they might say they do. In other words, the credit score you can see on the site and the credit score the retailer receives may be quite different.

I'd suggest you have two options:

1. If you're feeling really peeved, print out the score on the site and show it to the retailer. If there is a discrepancy, get a printout of the retailer's information on you and submit it to the Information Commissioner's Office to make a complaint. They will send you back a form and eventually after some dialogue, you will probably get a decision in your favour (that the credit reference agency did not process your data accurately and therefore illegally) and you can offer to settle with the agency out of court - for the price of the bike maybe!

2. Second option is show the score to the retailer and ask what the problem is. They will almost certainly want to sell you the bike because a sale at 0% is still better than no sale!

I'm far too lazy for all that Sid!

I'd rather walk.

All good ideas though. I'd like to stick it to 'em.

If I am to take anything positive from all of this it is that I have learned that I have a '999' rating. Previously I wouldn't have bothered checking.

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My son was refused credit also, about two weeks ago. He's 26 and has no debt (he made last payment on Barclaycard a week before) he's never missed or made a late payment and has had quite a few things on tick over the years. He was refused credit for £1000.

He's still fuming about it and made several phone calls to find out why as he has an excellent credit record.

I can only think it was either because he is a non home owner so has no registered asset they can attach an order to or that he emptied his Barclays account of £6k or so a month before.

Upshot is that he paid cash so saving the extortionate APR rates he was quoted.

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My son was refused credit also, about two weeks ago. He's 26 and has no debt (he made last payment on Barclaycard a week before) he's never missed or made a late payment and has had quite a few things on tick over the years. He was refused credit for £1000.

He's still fuming about it and made several phone calls to find out why as he has an excellent credit record.

I can only think it was either because he is a non home owner so has no registered asset they can attach an order to or that he emptied his Barclays account of £6k or so a month before.

Upshot is that he paid cash so saving the extortionate APR rates he was quoted.

Good on him.

I do have a large savings pot although I rent rather than own a home.

I think it's a sign of the times more than anything. I'm a 100% safe bet for anyone as the records clearly show yet I'm still considered a risk? What the hell is that all about. Who are these people who get credit and what do they have that I don't? A massive mortgage?

With regards to the bike I'm looking for a second hand one now so no 'company' will get my hard-earned cash.

I don't think I'll ever request credit again in my lifetime.

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Indeed. It got me swiftly out of it too!

Question is, what did the next one through the door do? That's an offer that'll get punters in front of salesmen, and just because you're not the type that's easily sold to doesn't mean everyone's like you.

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Guest theboltonfury
Reminds me of when Egg got rid of me. Coz I always paid my balance off in full every month.

Tits

Stupidly, the fool with 50k on cards yet somehow manages to pay the 1k each month interest but then chews on bone marrow for the rest of the month to survive, is a better bet than me, with 20k in the bank.

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Guest Parry
I fancied a new mountain bike last week and saw some companies offering 0% finance so thought to keep the money in the bank, pay a 10% deposit and take advantage.

As title. I was refused. Oh keep the stinking bike I'll buy one cash!

Registered with Credit Expert (worried and annoyed).

Logged in.

Credit score = 999.

I have £3000 of (5.9% apr) outstanding debt that will be cleared by the end of the year.

And that's it.

On the electoral roll, green dots across the board and strangely no credit check registered in the last 12 months.

I'm at a loss.

I'm beginning to wonder if I filled in the application wrongly?

Any thoughts?

Did you use the fvckin' shotgun like I said?

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Stupidly, the fool with 50k on cards yet somehow manages to pay the 1k each month interest but then chews on bone marrow for the rest of the month to survive, is a better bet than me, with 20k in the bank.

Well of course hes better. Hes going to pay them a grand where you are going to pay them nothing. Who would want a customer like you?

To the guy who has no credit card. Id seriously suggest you get one assuming its not like crack cocaine to you. Just spend your regular every month spending on it, and clear it. The ones I use actually give me a % back for doing this. This will build up a credit history for you. I think I have a credit limit of around £30k on mine the last time I added them up. I have never paid any interest, not ever.

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I fancied a new mountain bike last week and saw some companies offering 0% finance so thought to keep the money in the bank, pay a 10% deposit and take advantage.

how much was the mountain bike? you get paid peanuts to keep money in the bank, how can you be ars'd with the hassle for a few extra quid?? even if it was a £1000 mountain bike, you finance 900 of that and get paid interest on the money in the bank...even blagging one of the 5% deals with monthly saving etc (good luck not making a mistake and losing the right to the interest), and paying 20% tax on the interest, you get 4% on £900 = 36 quid...

...and then I come to the conclusion if you need 36 quid that badly you shouldn't be buying a £1000 mountain bike...so if it's a lower price than that, you're making even less ??

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Guest theboltonfury
Well of course hes better. Hes going to pay them a grand where you are going to pay them nothing. Who would want a customer like you?

To the guy who has no credit card. Id seriously suggest you get one assuming its not like crack cocaine to you. Just spend your regular every month spending on it, and clear it. The ones I use actually give me a % back for doing this. This will build up a credit history for you. I think I have a credit limit of around £30k on mine the last time I added them up. I have never paid any interest, not ever.

you are right.

Although, very soon the guy won't be able to make his grand and they'll be left chasing thin air.

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how much was the mountain bike? you get paid peanuts to keep money in the bank, how can you be ars'd with the hassle for a few extra quid?? even if it was a £1000 mountain bike, you finance 900 of that and get paid interest on the money in the bank...even blagging one of the 5% deals with monthly saving etc (good luck not making a mistake and losing the right to the interest), and paying 20% tax on the interest, you get 4% on £900 = 36 quid...

...and then I come to the conclusion if you need 36 quid that badly you shouldn't be buying a £1000 mountain bike...so if it's a lower price than that, you're making even less ??

Bike was £3899. Deposit was £780ish, 18 monthly payments @ £173ish.

Couldn't really be arsed to work out the ifs and buts but that's just me because I'm very lazy.

It took me masses of effort to do the damn credit check!

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Bike was £3899. Deposit was £780ish, 18 monthly payments @ £173ish.

Couldn't really be arsed to work out the ifs and buts but that's just me because I'm very lazy.

It took me masses of effort to do the damn credit check!

£3899 for a bike?

I used to do a bit of mountain biking and now that once you get over £1000 you won't be getting very good value for your cash.

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To the guy who has no credit card. Id seriously suggest you get one assuming its not like crack cocaine to you. Just spend your regular every month spending on it, and clear it. The ones I use actually give me a % back for doing this. This will build up a credit history for you. I think I have a credit limit of around £30k on mine the last time I added them up. I have never paid any interest, not ever.

... Not necessarily. I pay off my credit card every month and my current account hasn't gone overdrawn for years. Lots of savings. Yet I was refused credit earlier this year. After a couple of months investigation it seems that my bank (NatWest) only registers your card or account with Experian if you miss a payment or go overdrawn - and the subsequent lack of credit on my file apparently marked me out as "suspicious". Took me ages to convince NatWest to put my account on file, and I still haven't had any success getting the credit card up there. The whole Experian/Equifax system is a bit too random in my opinion.

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£3899 for a bike?

I used to do a bit of mountain biking and now that once you get over £1000 you won't be getting very good value for your cash.

Stop it. You sound like my dad.

I don't drink (much), I don't smoke, only go out once a month, work hard and I wanted to treat myself as I never do!

I know loads of blokes who would spend double that on a motorcycle anyway so the missus is happy ;)

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If a bike weighs 6KG or something, how can anyone buy one knowing a litre of water weighs 1 KG.

Yep, I don't think school science teachers should buy bikes either.

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