No bad credit but still declined?

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

tardtasticx

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#114088 7-Feb-2013 19:53

So today after days and weeks of research, me and my best friend decided we should get MacBooks for uni. We shopped around, found Dick Smith could get us 18months interest free with Q-Card.

Friend applied, got approved for $1000 so paid the rest with overdraft (tertiary with ASB). He has no job, no savings and maxed credit card as well as outstanding phone bills. So I was sure I'd have no problem getting the full amount considering I work full time, have a credit card thats completely paid off, and savings. Ive paid every bill on time, and the one time I missed a payment I paid the credit card off because I forgot about it. Also in contract with telecom and deffered payment on my iPhone 5.

So anyway, I applied and was declined. The qcard people were no help at all, they actually hung up on me after asking multiple times for any explanation other than "you dont meet our criteria". The CSR at DSE said it might be because of the amount of credit I've applied for, and he showed the credit report they sent him.

Vodafone - Pay Monthly, ended with all bills paid on time
2Degrees - Pay Monthy, ended with all bills paid on time
Telecom - Contract, still in term and all bills paid on time
ASB - Overdraft application, approved and accepted.
ASB - Extended my tertiary overdraft which was already pre approved for this amount.
ASB - Credit card application, approved and accepted, all bills paid on time and is currently paid off.
ANZ - Credit transfer application, approved but turned it down.
Kiwi bank - They done two for some reason for same as ANZ but declined me because of some bull about me not having an account there.

So now I dont know what to do. I cant get any credit from even damn q-card. Everyone has a q-card. I have no debts at all, have a solid income and approved for living allowance while studying this year, I don't know what I can do. Why would they decline me based on me applying for credit? How can I fix this up?

-Sam

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#757085 7-Feb-2013 20:01

The Veda scoring system will allocate a score between 1000 and 0. This is based on the history of the credit file, what's on it and the amount of checks and what type of credit been applied for.

From your post, it seems you have applied for a number of different things in a short space of time. This will affect the Veda score.

The only fix is not to apply for credit as often.

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macuser

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#757087 7-Feb-2013 20:02

Well, I mean even with all the information you gave me - At the end of the day I'm not sure I would lend any money to a chicken.

Kyanar

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#757094 7-Feb-2013 20:17

The biggest problem is that now there is positive reporting since April last year, the absence of credit data is considered a bad thing - so not having a positive history means you're as much of a risk as someone with a bad history.

The problem with that is that no-one reports positive data yet - so everyone's a liability!

Also, try GEM Visa. GE approves EEEEEEEVERYONE!

johnr

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#757095 7-Feb-2013 20:19

GE would approve a chicken

Regs

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Snowflake

#757099 7-Feb-2013 20:26

there are other ways to finance a purchase - you dont *have* to have a "Q" card (i dont have one!). The Q card, by the way, is run by Fisher & Paykel Finance.

Harvey Norman, Bond & Bond, Noel Leeming all use GE, so you could try one of them http://www.gecreditline.co.nz/

Some credit cards will offer you interest free terms for large purchases too, but you need to be careful with those as repayments usually pay off the interest free part before other purchases!

you could also try getting a personal bank loan (or an extended interest free student overdraft?) and then buy your laptop from somewhere else that sells it cheaper for cash. that way you might not be worse off even with interest attached.

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sidders80

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#757108 7-Feb-2013 21:08

I work for a bank and as someone has already pointed out above that too many credit hits in a short space of time can lead to a decline. When the bank or a finance company credit hits are recorded against you it shows you as someone looking for credit and also someone who is not getting approved hence shopping at different banks. Avoid credit check for a while if you can.

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rayonline

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#757116 7-Feb-2013 21:24

Don't apply so often and of all the current credit you have access to, that can be a risk too. Credit card limits or whatever limits are a risk even if you don't yet access them, b/c you certainly have the potential to access those. May depend on the provider too and how the staff were organised. One time I applied for a student VISA got declined, well actually they took a while I contacted my bank branch and they push thru a priority, I got the VISA approved on the same day I got the other declined notice. I was declined even thou, I never took any loans out or HPs, I had a $500 overdraft uni bank account.

Technofreak

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#757143 7-Feb-2013 22:02

If they're offering 18 months free there has to be a hook somewhere. See what deals you can do for cash there or elsewhere and use your other credit options.

As Regs mentioned you might actually be better off with another deal where you pay up front.

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minigopher17

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#757154 7-Feb-2013 22:24

Also, try GEM Visa. GE approves EEEEEEEVERYONE!

I must be one of those very few who have been declined by GE. I feel privileged and special :P

Dunnersfella

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#757157 7-Feb-2013 22:37

You won't get 'deals for cash' on Apple laptops.
Sadly, there's just not that sort of margin to get discounts on Apple gear.
Having said that, it's also illegal for them to offer an interest free price, and a cash price.

As you get older, getting credit will be easier. Some goes if you live in the same place / work at the same place for more than 3 years. Oh yeah, assets help - lots of assets.

ubergeeknz

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Vocus

#757159 7-Feb-2013 22:38

Dunnersfella: Having said that, it's also illegal for them to offer an interest free price, and a cash price.

Under which law?

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Kyanar

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#757160 7-Feb-2013 22:39

ubergeeknz:
Dunnersfella: Having said that, it's also illegal for them to offer an interest free price, and a cash price.

Under which law?

Fair Trading Act off the top of my head. See http://www.consumer.org.nz/reports/fair-trading-act/common-problems for all the info. I'd link it, but GZ's link popup is broken.

ubergeeknz

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Vocus

#757163 7-Feb-2013 22:44

I see, although it seems the intention is that there would be no "hidden costs". I wonder what the stance would be on a cheaper price for interest free... I know that in the UK it's now become commonplace for things to cost a lot more when paying cash (as insane as that sounds) - because the finance companies want to hook you in to a line of revolving credit...

surfisup1000

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#757164 7-Feb-2013 22:45

ubergeeknz:
Dunnersfella: Having said that, it's also illegal for them to offer an interest free price, and a cash price.

Under which law?

It is true, they cannot do this.

It is because retailers were hiking the price on the interest free offers so in fact the higher price is actually the concealed interest cost .

mattwnz

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#757181 8-Feb-2013 00:17

surfisup1000:
ubergeeknz:
Dunnersfella: Having said that, it's also illegal for them to offer an interest free price, and a cash price.

Under which law?

It is true, they cannot do this.

It is because retailers were hiking the price on the interest free offers so in fact the higher price is actually the concealed interest cost .

Fair enough too. Retailers do often give 10% off apple laptops but it probably isn't the best time of the year for specials.
Maybe also look at apples online store for their refurbs, which can be as good as new ones, as sometimes they are just repackaged new ones that have been returned, and legally they cannot sell as new.

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