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If I take out a phone contract with O2, say, does my credit score reduce? I suppose I am asking if they do a hard or soft credit check.
Does taking out a phone contract reduce your credit score?
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Caporegime
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Yes. They do the hard check and if you take out a contract it reduces a bit more.
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I ask because when I was declined by Vodafone not even a soft search showed on my credit file. Absolutely nothing showed up. Very odd.
![[TW]Fox](/data/man-of-honor/2009.png){kind=avatar}
You don't have a credit score, you have a credit file, information on which various organisations (Such as lenders or reference agencies) can use to generate internal scores using algorithms that suit whatever purpose they are looking on your file for.
A mobile phone contract is unlikely to adversely affect your credit file, if anything it probably enhances it. It isn't a significant amount of money but it does demonstrate you can pay regular bills on time and develops your credit history.
Multiple applications in a short space of time, however, might be more problematic because of the potential story it tells.
A mobile phone contract is unlikely to adversely affect your credit file, if anything it probably enhances it. It isn't a significant amount of money but it does demonstrate you can pay regular bills on time and develops your credit history.
Multiple applications in a short space of time, however, might be more problematic because of the potential story it tells.
Not odd at all, there are multiple credit reference agencies - your Vodafone search might have been with one of the others.
Soldato
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[TW]Fox;28979209 said:
My thinking as well, surely it would enhance your credit file.
Missing a bill will kill it though as I found out with O2. Deciding to charge me £760 one month which I refused to pay obviously. Took 6 months to get it removed from my file after they admitted fault. Still appears on one of the agencies despite repeated attempts to expunge it.
You don't have a credit score. You have a credit file.
You can check it with any of the credit reference agencies. Most charge, but Noddle.co.uk will show you it free.
They will all attempt to sell you a 'score' product but it's just an estimate based on the information in your file. Every lender has it's own private method of scoring depending on the product its offering and what it's lending criteria is.
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Essentially I'm using O2 Refresh so I'm going to pay off the handset loan cost right away and then cancel the airtime as per their terms and conditions.
I assume my credit file isn't going to change as essentially I'm never using the credit.
I assume my credit file isn't going to change as essentially I'm never using the credit.
I've no idea what the numbers involved are but this seems an odd way of getting a handset. Surely there is a cheaper and less hassle way?
You are using the credit, when you apply they've no idea you will settle the agreement once you get it. Therefore they will check your credit file and create a credit account.
Your credit file shows how much debt you have, how often you pay it, how much you pay, and how well you can keep up with your debts.
It's a tool for companies use it to see how trustworthy you are, nothing more. So as far as they are concerned you will always have a bad credit file if you never use it.
But that isn't always a bad thing, living a life of debt is worse than having a bad credit file.
So if you can manage life without credit at all, then good for you.
Poppycock.
Multiple searches in a short space of time can make a difference to how lenders asses a credit application. Lenders do expect to see searches on files and it is not an issue unless you are making multiple applications regularly.
Having a mobile phone contract is not a cause for concern for anyone assessing you for credit. In fact as long as it is always paid on time then it demonstrates your ability to pay and on time, so will be favorable.
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[TW]Fox;28979273 said:
It's the cheapest way to get an S6. You can get one for £259.99 this way rather than £359 from Argos so a £100 saving.
Surely you also have to buy out of the airtime contract to cancel it, adding more cost.
[TW]Fox;28979710 said:
Guess you're doing the S6 Refresh deal going around HUKD right now, I have done a similar thing with my Note 3 a year ago and can't say I noticed my credit score dropping, I had Check My File at the time and numbers seemed to have stayed the same.
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That's it yes. Only have to pay off the device plan when you cancel an O2 Refresh plan and then if you cancel within 14 days you don't even have to pay a month's line rental.
So it's £10 * 24 months = £240. £240 + £19.99 upfront = £259.99.
Galaxy S6?
EDIT: DOh, I've just seen the other message posted before me. Don't you have to pay 1 month of airtime too for it?
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Just hopped onto Checkmyfile and my credit score isn't great (only had a credit card for two months and don't have a bank overdraft); still got accepted for this phone though so I guess the requirements aren't too high.
How long does it take for a credit score to improve? How long until I can get a credit card that doesn't have a 99% APR rate or something ridiculous like that?
How long does it take for a credit score to improve? How long until I can get a credit card that doesn't have a 99% APR rate or something ridiculous like that?