No bad credit but still declined?

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Forums › Finance and wealth management › No bad credit but still declined?

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#757311 8-Feb-2013 13:33

Technofreak: If they're offering 18 months free there has to be a hook somewhere.

The hook is most people are complacent and go well over the 18 months, when they hit you real hard.

I just signed up for a Q card (which got approved ridiculously quickly I might add) and am paying well above the minimum so I finish early.

QED.

eXDee

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#757378 8-Feb-2013 15:49

QCard has an ongoing fee. From memory Dick smith offered finance now before they jumped on board with qcard, and i believe its still available from what i can see on their website. I've never seen a place offer less than 12 months interest free so perhaps try asking for that?

Finance now doesn't have any ongoing costs once the finance is completed, ie no card membership etc.

mattwnz

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#757387 8-Feb-2013 16:17

To be fair, I think they are doing the OP a favour not giving credit, based on all the other credit they have signed up to recently, as I can see that they may think it is quite high risk, and it gives them a bit of a wake up call.
Personally when I was at uni a decade ago, I used savings to pay for stuff or went without. Laptops back them were pretty rare and expensive, but I guess these days everyone has them, but they are pretty cheap too. Never got a loan for that sort of thing. I think loans are best used for assets that appreciate in value, like homes, and not consumables. If you are brought up that way, you are less likely to run into problems further down the track.

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#757389 8-Feb-2013 16:24

Did you ask the finance company for a smaller loan? If you have savings that would be a better idea anyway.

macuser

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#757422 8-Feb-2013 17:26

Course related costs...every year you get $1000 to buy course materials (pay it back from your loan)...use it to buy a cheap Dell online?

Kopkiwi

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#759060 10-Feb-2013 17:06

Yeah as someone who works in Finance and deals with Veda and scoring systems, there is nothing in what you've noted that would lead to a decline from the Veda report point of it. There is only 4 inquiries to finance companies, which NO bank is going to care about. The rest are just for phone etc, which isn't an issue.

There has to be some other piece of information you're missing out? Missuse of accounts, going over your OD limit?

If a finance company says you don't meet their criteria generally they mean you don't meet their servicing requirements.

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#759678 11-Feb-2013 18:09

The interest free is factored into the price...
Plus booking fee...

Interest fee is a convenience. Might be worth comparing the price on pricespy to see how cheap it's sold by others.

But you can be declined for anything really. I worked for a finance company for five years and would decline customers for all kinds of reasons. Lying about length of time at address or job, income. Multiple enquiries in a short space of time, low income, adverse credit, no credit match. On and on and on.
I'm fairly sure they don't have to tell you why you've been declined other than that you don't meet their criteria.

I'm trying to remember the retention rate GE would be charged for 5 years interest free. Pretty sure it was around 20%.

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#759684 11-Feb-2013 18:18

While they might not be able to change more for an 'interest free' purchase (I'm not sure this is true, anyway) - you can often negotiate a 'discount' for cash. It's kind of a technicality.

A lot of online retailers used to use a similar tactic for credit card 'surcharges' back when they weren't allowed. Instead having prices that included a 'x% discount for cash'.

I purchased a laptop from Harvey Normal a couple of years ago during a big interest free promotion of theirs. I paid cash - and was able to negotiate a significant discount from the sticker price. I enquired if they were able to do that price on interest free and they said no way.

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mudguard

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#759697 11-Feb-2013 19:08

and was able to negotiate a significant discount from the sticker price. I enquired if they were able to do that price on interest free and they said no way.

If they agree on a price. You can then put that on interest free. My old boss used to do it all the time.

How much is that fridge? $1500 over 24 months interest free.
How much if I pay cash? $1300.
Great, I'll take it on interest free terms for $1300.
You cannot offer two prices.
If a retailer does it the other way it's called hydraulicing.

tardtasticx

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#759707 11-Feb-2013 19:44

Kopkiwi: Yeah as someone who works in Finance and deals with Veda and scoring systems, there is nothing in what you've noted that would lead to a decline from the Veda report point of it. There is only 4 inquiries to finance companies, which NO bank is going to care about. The rest are just for phone etc, which isn't an issue.

There has to be some other piece of information you're missing out? Missuse of accounts, going over your OD limit?

If a finance company says you don't meet their criteria generally they mean you don't meet their servicing requirements.

Thats what I thought.

I had my overdraft renewed the other week, i have a tertiary account with ASB and it comes with an Interest free overdraft for a year which was due to expire, when they done they they also doubled the limit of said overdraft. I asked the manager of the branch I went to about my credit report and showed her the printout DSE gave me. She said "Theres nothing wrong with that, people do credit checks all the time, and we can see all your funds and know you've never missed payments or gone over limits so your fine, plus it doesnt show you leaving bad debt so theres nothing to worry about, itd be something else". They accepted everything no problem which is great.

Thats the thing, theres nothing I'm missing out. I've never had another credit card, the only one I have is with ASB and thats been maxed out a few times and has only gone over the limit because of interest when I was struggling during study but I always made the min payment and paid the whole thing off in one go. Its currently in use but no where near the limit and they would have shut it off it was a problem, or atleast contacted me. The only time they did was when I was two days away from the due date, and that was only a txt.

All other cell providers I've been with never had a problem. Never been contacted about a payment ever and left with everything paid off completely.

ASB also closed off my other bank accounts when I done the overdraft (old dorment accounts with Westpac and Kiwibank, westpac from when parents moved us there as kids and switched to ASB when started study but forgot about it).

What else could there possibly be that they could decline me on? I'm earning enough, no bad debt, current address is just over a year but previous was 8 years and I live with my parents who earn enough money to almost prevent me getting a student loan apparently. Studylink lent me over 15K last year but I couldnt get 2K for a laptop?

Anyway, I ended up getting it using my own money which I wasnt happy about but its forcing me to budget for the next week or so until pay day comes round. Old laptop is on trademe tonight which will pay for most of the new MacBook so I'm not stressing much.

Any advice anyway? Can I contact anyone about what to do? I'd rather get this sorted if its anything I can fix.

-Sam

graemeh

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#759791 11-Feb-2013 22:08

As kopkiwi says, it is probably servicing requirements.

Remember they will assume all your credit is maxed out in doing their calculations. They probably also assume you are paying interest on the debts too.

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richms

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#759803 11-Feb-2013 22:29

There is nothing you can do about it. You asked them to do something for you, they said no. End of story.

You dont have any right to credit, there is no discrimination by them declining you.

Richard rich.ms

tardtasticx

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#759805 11-Feb-2013 22:33

richms: There is nothing you can do about it. You asked them to do something for you, they said no. End of story.

You dont have any right to credit, there is no discrimination by them declining you.

No no no no you seem to have misunderstood me. i want to find out whats wrong with my credit and how I can fix it so I can avoid future problems. I dont want their credit anymore, I simply used my own money, but theres obviously something else behind it.

Like I've said. I earn way more than my friend who was approved (hes unemployed i work full time)
Ive never missed any payments and there was nothing showing me in a bad light (ie. defaulting or going bankrupt etc)

richms

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#759809 11-Feb-2013 22:39

There is nothing wrong with it. You sound like one of those woman that assumes that there is something wrong with them when turned down for a date.

They will have a risk profile they are allowed to lend to, based on income, debt, servicing that debt, age bracket, where you fit on income in that age bracket etc. If you dont meet the criterias they have made they are _NOT ALLOWED_ to lend to you. Otherwise they would just become another hannover finance type thing giving money away to anything and then going broke.

The rules are there to protect their investors from too much risk in certain categories. It is really really really complicated how they will assess people into certain pools of risk, and if that pool is out of funding, declined.

Richard rich.ms

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#759811 11-Feb-2013 22:47

richms: There is nothing wrong with it. You sound like one of those woman that assumes that there is something wrong with them when turned down for a date.

They will have a risk profile they are allowed to lend to, based on income, debt, servicing that debt, age bracket, where you fit on income in that age bracket etc. If you dont meet the criterias they have made they are _NOT ALLOWED_ to lend to you. Otherwise they would just become another hannover finance type thing giving money away to anything and then going broke.

The rules are there to protect their investors from too much risk in certain categories. It is really really really complicated how they will assess people into certain pools of risk, and if that pool is out of funding, declined.

Not really a similar comparison but i see what you mean.

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