Pulled Out Of 3 Contract Now Can't Get Any Contract?

Simonuk · 14-12-2005, 12:31

I pulled out of my 3 contract some 6 months early as there was a loophole which allowed me to do so. The problem being I have now got declined from O2,Vodafone,T-Mobile and Orange. Any ideas on how I can get a contract? Or why am I being declined? I've never had any problems in the past, did ending my contract early do something to my rating?

Laydee Danielle · 14-12-2005, 12:36

have you actually asked the companys why? Im sure they will be able to give you this information.

Has you financial situation changed since taking out the contract? If so that could be the problem

Misanthrope · 14-12-2005, 12:38

No offence, but if I'm remembering your posts right, aren't you currently unemployed with a load of debt ??

Apologies if I have the wrong poster.

Simonuk · 14-12-2005, 12:53

Quote:

Originally Posted by Laydee Danielle

have you actually asked the companys why? Im sure they will be able to give you this information.

Has you financial situation changed since taking out the contract? If so that could be the problem

Yes I suppose it has changed, I'm unemployed now

Steven L Hunter · 14-12-2005, 13:12

Try Virgin Mobile contracts as well but i doubt they will approve if you never got any of the others or what about BT Mobile or Onetel Mobile??

lee18xx · 14-12-2005, 13:18

T-Mobile is the easiest network to get a contract with - even more so than Virgin.

They may ask for a deposit, but this is usually refunded within six months.

If I remember correctly, Virgin Mobile's credit checks are controlled by The CarphoneWarehouse (therefore they are quite strict) whereas T-Mobile are crying out for customers.

muffin789 · 14-12-2005, 13:51

Any company that declines you for credit (which includes phone contracts) is obliged to tell you why they have declined you under the Data Protection Act.

Before you try getting a contract with any other providers, find out why some have already turned you down, as each new request for credit that isn't approved makes your credit rating even worse.

lalaland · 14-12-2005, 13:55

Quote:

Originally Posted by muffin789

Any company that declines you for credit (which includes phone contracts) is obliged to tell you why they have declined you under the Data Protection Act.

They can say that they have turned you down as a result of internal credit scoring. That's enough to satisfy UK law.

If you want further information you would then have to apply for a copy of your file help at Experian and Equifax. Find out which one the mobile company uses and apply.

Quote:

Originally Posted by muffin789

Before you try getting a contract with any other providers, find out why some have already turned you down, as each new request for credit that isn't approved makes your credit rating even worse.

The reason for this is because they can see you've had several searches recently and now you are applying to them. They know you either got turned down or you are taking on further financial commitment and they may consider it to be beyond your means with their own scoring guidelines.

lalaland · 14-12-2005, 14:01

Quote:

Originally Posted by Simonuk

Yes I suppose it has changed, I'm unemployed now

If you are unemployed then chances are they won't approve you for a contract.

Unemployment will definatly be harming your credit score.

Credit scoring and credit checking are slightly different. Checking is where they will look at your file at Experian or Equifax (I think there's another too, can't remember) and check your history. This is used to take in to account how you've handled debts and loans etc. in the past.

Credit scoring is where the answers you give to certain questions are marked and added up. This is normally done using the companies own policies and you have to reach a set score for them to offer you the credit facilities, in this case a mobile phone contract.

If you cancelled Three correctly and didn't just close your direct debit and ignore the bills etc. then leaving Three won't have caused any damage to your record. If however you did leave Three without their agreement then I would say there's a strong chance that this is the cause for rejection and you will also find it affects other credit applications in your life too.

Other things such as council tax defaults, not paying bills, and generally paying late on credit agreements or going over your credit card limit etc. will also have a negative affect on your credit record and will cause problems like this.

Have you had any of the above problems?

stevejk75 · 14-12-2005, 16:04

I am currently on my second year of my contract with o2,which ends on 08/02/06.On saturday i applied on line with the three network,for a years contract.They approved straight away.I got my new phone yesterday a sony-ericsson k608i.I am also registered disabled and cant work.And also because of this i had a bad credit rating.The point i am trying to make is that i am approved for two contracts running at the same time,the o2 one is going in february.So someone tell me how can you have a bad credit rating say if you want to buy a new tv,which i have just tried to do and got turned down.But had my mastercard credit limit increased.Im baffled.

lalaland · 14-12-2005, 16:14

Quote:

Originally Posted by stevejk75

I am currently on my second year of my contract with o2,which ends on 08/02/06.On saturday i applied on line with the three network,for a years contract.They approved straight away.I got my new phone yesterday a sony-ericsson k608i.I am also registered disabled and cant work.And also because of this i had a bad credit rating.The point i am trying to make is that i am approved for two contracts running at the same time,the o2 one is going in february.So someone tell me how can you have a bad credit rating say if you want to buy a new tv,which i have just tried to do and got turned down.But had my mastercard credit limit increased.Im baffled.

You can't have a bad credit rating for being disabled, that would be highly illegal, I presume you don't score to highly because you aren't in full time employment.

Different companies have their own criteria when carrying out credit scoring. What's right for one isn't always right for another, so while you may score correctly with one company you may still find that another doesn't want to know.

Keep in mind there are credit records and credit scoring, don't confuse the two. Unless you've had a trouble past (ie missed payments, defaults, council tax issues etc.) then you are unlikely to have a bad credit record, but the you may not do to well on credit scoring due to your circumstances such as income.

If you got turned down for the TV then there could have been many reasons, but mobile phone contracts are normally easier to get than finance for a purchase such as a TV. They may have also taken in to consideration your income and current outgoings or visible credit on your record (such as two mobile phone contracts) and decided that in their view you have too many commitments compared to your income for them to offer you a finance agreement.

The best thing to do is to get your credit record from the company that they use, normally experian or equifax but ask and they'll tell you which one, and then take a look to make sure there's nothing out of place on there.

lalaland · 14-12-2005, 16:17

Just as a guide on credit scoring, things such as income, length of time with employer, length of time with bank, length of time in current address, registered on the electoral role etc. all play a part.

The longer you've been with an employer, bank or in your current address the better you score. The more you earn compared to what you have already going out, the better you score.

Different companies have their own requirements, so failing one score doesn't always mean you'll fail another and vice versa.

Credit scoring isn't recorded on your credit file, but a credit search is.

Mr Cable · 14-12-2005, 16:35

Quote:

Originally Posted by Simonuk

I pulled out of my 3 contract some 6 months early as there was a loophole which allowed me to do so. The problem being I have now got declined....

I thought this might have happened to quite a few people.

At the end of the day, you could try to go back to three with a new handset/contract - if they'll have you.

If not, is it possible they could re-activate your old account?

lalaland · 14-12-2005, 16:46

Just one other thing to add, in the early days of Three they were keen to build up their customer base and let through more people than they normally would on the credit checks and scoring. This was to build up a customer base quickly.

Now they are established and their customers are growing quickly they are a little more picky now, so you may find that while they once accepted you, they may not do so now.

Simonuk · 14-12-2005, 17:32

I'll stick with pay as you go. I wouldn't go back to 3 after the problems I've had with there coverage. As suggested earlier I tried BT Mobile before I got my 3 contract and they made a complete hash of delivery, sending it to a town almost 30 miles away,

stevejk75 · 14-12-2005, 18:23

Thanks for the input lalaland very helpful.

14-12-2005, 19:38

Quote:

Originally Posted by Simonuk

I pulled out of my 3 contract some 6 months early as there was a loophole which allowed me to do so. The problem being I have now got declined from O2,Vodafone,T-Mobile and Orange. Any ideas on how I can get a contract? Or why am I being declined? I've never had any problems in the past, did ending my contract early do something to my rating?

Could the fact that you are not earning any money and owe a lot of people a shedload of money that you are currently failing to repay at the original agreed rate have any bearing on why you cannot secure further lines of credit?

(For those who don't know what I'm going on about, have a look at the OP's posts in GD over the past couple of months)

lalaland · 14-12-2005, 23:54

Quote:

Originally Posted by dawson

Could the fact that you are not earning any money and owe a lot of people a shedload of money that you are currently failing to repay at the original agreed rate have any bearing on why you cannot secure further lines of credit?

(For those who don't know what I'm going on about, have a look at the OP's posts in GD over the past couple of months)

If this is true then nail, hitting and on the head come to mind.

If you want specific advice or are having some money or loan worries then visit http://www.moneysavingexpert.co.uk you'll find a lot of people willing to help on their forum and they are spot on too.

flagpole · 15-12-2005, 11:28

i have never known anyone be turned down because they were unemployed.

lalaland · 15-12-2005, 12:00

It's very possible, your score won't be as high if you are unemployed as someone that is employed.

It may be this or it may be this and a combination of other things too.

Vashta Nerada · 15-12-2005, 12:31

Iv had 2 contracts from 3 this year & im unemployed they seem to give phones to just about anyone.

lalaland · 15-12-2005, 13:48

Quote:

Originally Posted by robcole2004

Iv had 2 contracts from 3 this year & im unemployed they seem to give phones to just about anyone.

You obviously pass their requirements, which some people won't do.

Being unemployed will have more than likely lowered your score too, but obviously you have other factors affecting your scoring.

Having said that, not all companies credit score, some just go on a credit report on it's own.

James Clayton · 15-12-2005, 14:21

The companies often change the rules for qualifying / credit scoring depending on how much they want new customers. Sometimes they just need volume of sales for a period.

Credit card companies that charge a higher APR often take more risky applications because they cost in the risk of you going bankrupt or moving address and trying to cover your tracks.

If you are turned down the likelyhood is you shouldn't be having that credit, companies normally stupidly throw money at you, so if they are denying it, then there is good reason. They can see your credit habits and compare them statisticly to those who are most likely to get into trouble. They are actually doing you a favour, believe me they would love to take your money.

If you are not employed and having problems as suggested above, why not consider NOT having a mobile until you find employment, after all it's NOT a necessity. You could always get a £20 pay as you go and use it sparingly.

Remember on a contract you are commiting to spend an absolute minumum £200 over 18 months or whatever.

The trap most people get into is not just overspending, but commiting to more than you can afford, so every month you can't break even anymore. Then every month you are £50 or £100 down or worse , that you can't pay back because you are already commited / stretched. Added to that non payment fees and interest and then you are into a spiral of trouble. It's a fine balance too, so be carefull what you commit to.

It's the monthly commitments (credit) that gets you into trouble not the spending, because it cannot be reversed. You've in effect spent the total amount repayable on the day you sign and you can't change that.

stevejk75 · 15-12-2005, 19:02

I have just cancelled my contract with 3.After 2 days, they are utter bilge.See my other thread 3 have driven me insane.

stonard123 · 15-12-2005, 22:59

Quote:

Originally Posted by lee18xx

T-Mobile is the easiest network to get a contract with - even more so than Virgin.

They may ask for a deposit, but this is usually refunded within six months.

If I remember correctly, Virgin Mobile's credit checks are controlled by The CarphoneWarehouse (therefore they are quite strict) whereas T-Mobile are crying out for customers.

Getting a pass on the Virgin network is the same as T-Mobile (Virgin use the T-Mobile network) Networks (easiest to hardest) to get a pass on are as follows:

Three
Orange
T-Mobile
o2
Vodafone

If you have been declined on the other 4 networks then no matter which company you go for, the result will always be the same, its the networks that decide on what credit score you need not the company that you are trying to buy a deal through.

14-12-2005, 12:31	#1
Simonuk Forum Member Join Date: Apr 2005 Posts: 857	Pulled Out Of 3 Contract Now Can't Get Any Contract? I pulled out of my 3 contract some 6 months early as there was a loophole which allowed me to do so. The problem being I have now got declined from O2,Vodafone,T-Mobile and Orange. Any ideas on how I can get a contract? Or why am I being declined? I've never had any problems in the past, did ending my contract early do something to my rating?

15-12-2005, 14:21	#23
James Clayton Banned User Join Date: Dec 2003 Posts: 799	The companies often change the rules for qualifying / credit scoring depending on how much they want new customers. Sometimes they just need volume of sales for a period. Credit card companies that charge a higher APR often take more risky applications because they cost in the risk of you going bankrupt or moving address and trying to cover your tracks. If you are turned down the likelyhood is you shouldn't be having that credit, companies normally stupidly throw money at you, so if they are denying it, then there is good reason. They can see your credit habits and compare them statisticly to those who are most likely to get into trouble. They are actually doing you a favour, believe me they would love to take your money. If you are not employed and having problems as suggested above, why not consider NOT having a mobile until you find employment, after all it's NOT a necessity. You could always get a £20 pay as you go and use it sparingly. Remember on a contract you are commiting to spend an absolute minumum £200 over 18 months or whatever. The trap most people get into is not just overspending, but commiting to more than you can afford, so every month you can't break even anymore. Then every month you are £50 or £100 down or worse , that you can't pay back because you are already commited / stretched. Added to that non payment fees and interest and then you are into a spiral of trouble. It's a fine balance too, so be carefull what you commit to. It's the monthly commitments (credit) that gets you into trouble not the spending, because it cannot be reversed. You've in effect spent the total amount repayable on the day you sign and you can't change that. Last edited by James Clayton : 15-12-2005 at 14:36.

14-12-2005, 12:36	#2
Laydee Danielle Forum Member Join Date: Feb 2005 Location: Hertfordshire Posts: 108	have you actually asked the companys why? Im sure they will be able to give you this information. Has you financial situation changed since taking out the contract? If so that could be the problem

14-12-2005, 12:38	#3
Misanthrope Forum Member Join Date: Sep 2003 Location: In my happy place Posts: 5,251	No offence, but if I'm remembering your posts right, aren't you currently unemployed with a load of debt ?? Apologies if I have the wrong poster.

14-12-2005, 12:53	#4
Simonuk Forum Member Join Date: Apr 2005 Posts: 857	Quote: Originally Posted by Laydee Danielle have you actually asked the companys why? Im sure they will be able to give you this information. Has you financial situation changed since taking out the contract? If so that could be the problem Yes I suppose it has changed, I'm unemployed now

14-12-2005, 13:12	#5
Steven L Hunter Guest Join Date: Oct 2002 Posts: 10,517	Try Virgin Mobile contracts as well but i doubt they will approve if you never got any of the others or what about BT Mobile or Onetel Mobile??

14-12-2005, 13:18	#6
lee18xx Forum Member Join Date: Jul 2003 Location: UK Posts: 2,794	T-Mobile is the easiest network to get a contract with - even more so than Virgin. They may ask for a deposit, but this is usually refunded within six months. If I remember correctly, Virgin Mobile's credit checks are controlled by The CarphoneWarehouse (therefore they are quite strict) whereas T-Mobile are crying out for customers.

14-12-2005, 13:51	#7
muffin789 Forum Member Join Date: Sep 2005 Location: Devon Posts: 1,608	Any company that declines you for credit (which includes phone contracts) is obliged to tell you why they have declined you under the Data Protection Act. Before you try getting a contract with any other providers, find out why some have already turned you down, as each new request for credit that isn't approved makes your credit rating even worse.

14-12-2005, 13:55	#8
lalaland Forum Member Join Date: Dec 2002 Location: UK Posts: 11,539	Quote: Originally Posted by muffin789 Any company that declines you for credit (which includes phone contracts) is obliged to tell you why they have declined you under the Data Protection Act. They can say that they have turned you down as a result of internal credit scoring. That's enough to satisfy UK law. If you want further information you would then have to apply for a copy of your file help at Experian and Equifax. Find out which one the mobile company uses and apply. Quote: Originally Posted by muffin789 Before you try getting a contract with any other providers, find out why some have already turned you down, as each new request for credit that isn't approved makes your credit rating even worse. The reason for this is because they can see you've had several searches recently and now you are applying to them. They know you either got turned down or you are taking on further financial commitment and they may consider it to be beyond your means with their own scoring guidelines.

14-12-2005, 14:01	#9
lalaland Forum Member Join Date: Dec 2002 Location: UK Posts: 11,539	Quote: Originally Posted by Simonuk Yes I suppose it has changed, I'm unemployed now If you are unemployed then chances are they won't approve you for a contract. Unemployment will definatly be harming your credit score. Credit scoring and credit checking are slightly different. Checking is where they will look at your file at Experian or Equifax (I think there's another too, can't remember) and check your history. This is used to take in to account how you've handled debts and loans etc. in the past. Credit scoring is where the answers you give to certain questions are marked and added up. This is normally done using the companies own policies and you have to reach a set score for them to offer you the credit facilities, in this case a mobile phone contract. If you cancelled Three correctly and didn't just close your direct debit and ignore the bills etc. then leaving Three won't have caused any damage to your record. If however you did leave Three without their agreement then I would say there's a strong chance that this is the cause for rejection and you will also find it affects other credit applications in your life too. Other things such as council tax defaults, not paying bills, and generally paying late on credit agreements or going over your credit card limit etc. will also have a negative affect on your credit record and will cause problems like this. Have you had any of the above problems?

14-12-2005, 16:04	#10
stevejk75 Forum Member Join Date: Aug 2004 Location: Kent. Posts: 805	I am currently on my second year of my contract with o2,which ends on 08/02/06.On saturday i applied on line with the three network,for a years contract.They approved straight away.I got my new phone yesterday a sony-ericsson k608i.I am also registered disabled and cant work.And also because of this i had a bad credit rating.The point i am trying to make is that i am approved for two contracts running at the same time,the o2 one is going in february.So someone tell me how can you have a bad credit rating say if you want to buy a new tv,which i have just tried to do and got turned down.But had my mastercard credit limit increased.Im baffled.

14-12-2005, 16:14	#11
lalaland Forum Member Join Date: Dec 2002 Location: UK Posts: 11,539	Quote: Originally Posted by stevejk75 I am currently on my second year of my contract with o2,which ends on 08/02/06.On saturday i applied on line with the three network,for a years contract.They approved straight away.I got my new phone yesterday a sony-ericsson k608i.I am also registered disabled and cant work.And also because of this i had a bad credit rating.The point i am trying to make is that i am approved for two contracts running at the same time,the o2 one is going in february.So someone tell me how can you have a bad credit rating say if you want to buy a new tv,which i have just tried to do and got turned down.But had my mastercard credit limit increased.Im baffled. You can't have a bad credit rating for being disabled, that would be highly illegal, I presume you don't score to highly because you aren't in full time employment. Different companies have their own criteria when carrying out credit scoring. What's right for one isn't always right for another, so while you may score correctly with one company you may still find that another doesn't want to know. Keep in mind there are credit records and credit scoring, don't confuse the two. Unless you've had a trouble past (ie missed payments, defaults, council tax issues etc.) then you are unlikely to have a bad credit record, but the you may not do to well on credit scoring due to your circumstances such as income. If you got turned down for the TV then there could have been many reasons, but mobile phone contracts are normally easier to get than finance for a purchase such as a TV. They may have also taken in to consideration your income and current outgoings or visible credit on your record (such as two mobile phone contracts) and decided that in their view you have too many commitments compared to your income for them to offer you a finance agreement. The best thing to do is to get your credit record from the company that they use, normally experian or equifax but ask and they'll tell you which one, and then take a look to make sure there's nothing out of place on there.

14-12-2005, 16:17	#12
lalaland Forum Member Join Date: Dec 2002 Location: UK Posts: 11,539	Just as a guide on credit scoring, things such as income, length of time with employer, length of time with bank, length of time in current address, registered on the electoral role etc. all play a part. The longer you've been with an employer, bank or in your current address the better you score. The more you earn compared to what you have already going out, the better you score. Different companies have their own requirements, so failing one score doesn't always mean you'll fail another and vice versa. Credit scoring isn't recorded on your credit file, but a credit search is.

14-12-2005, 16:35	#13
Mr Cable Forum Member Join Date: Apr 2001 Location: Manchester, UK Posts: 2,868	Quote: Originally Posted by Simonuk I pulled out of my 3 contract some 6 months early as there was a loophole which allowed me to do so. The problem being I have now got declined.... I thought this might have happened to quite a few people. At the end of the day, you could try to go back to three with a new handset/contract - if they'll have you. If not, is it possible they could re-activate your old account?

14-12-2005, 16:46	#14
lalaland Forum Member Join Date: Dec 2002 Location: UK Posts: 11,539	Just one other thing to add, in the early days of Three they were keen to build up their customer base and let through more people than they normally would on the credit checks and scoring. This was to build up a customer base quickly. Now they are established and their customers are growing quickly they are a little more picky now, so you may find that while they once accepted you, they may not do so now.

14-12-2005, 17:32	#15
Simonuk Forum Member Join Date: Apr 2005 Posts: 857	I'll stick with pay as you go. I wouldn't go back to 3 after the problems I've had with there coverage. As suggested earlier I tried BT Mobile before I got my 3 contract and they made a complete hash of delivery, sending it to a town almost 30 miles away,

14-12-2005, 18:23	#16
stevejk75 Forum Member Join Date: Aug 2004 Location: Kent. Posts: 805	Thanks for the input lalaland very helpful.

14-12-2005, 19:38	#17
dawson Posts: n/a	Quote: Originally Posted by Simonuk I pulled out of my 3 contract some 6 months early as there was a loophole which allowed me to do so. The problem being I have now got declined from O2,Vodafone,T-Mobile and Orange. Any ideas on how I can get a contract? Or why am I being declined? I've never had any problems in the past, did ending my contract early do something to my rating? Could the fact that you are not earning any money and owe a lot of people a shedload of money that you are currently failing to repay at the original agreed rate have any bearing on why you cannot secure further lines of credit? (For those who don't know what I'm going on about, have a look at the OP's posts in GD over the past couple of months)

14-12-2005, 23:54	#18
lalaland Forum Member Join Date: Dec 2002 Location: UK Posts: 11,539	Quote: Originally Posted by dawson Could the fact that you are not earning any money and owe a lot of people a shedload of money that you are currently failing to repay at the original agreed rate have any bearing on why you cannot secure further lines of credit? (For those who don't know what I'm going on about, have a look at the OP's posts in GD over the past couple of months) If this is true then nail, hitting and on the head come to mind. If you want specific advice or are having some money or loan worries then visit http://www.moneysavingexpert.co.uk you'll find a lot of people willing to help on their forum and they are spot on too.

15-12-2005, 11:28	#19
flagpole Inactive Member Join Date: Jan 2003 Posts: 43,524	i have never known anyone be turned down because they were unemployed.

15-12-2005, 12:00	#20
lalaland Forum Member Join Date: Dec 2002 Location: UK Posts: 11,539	It's very possible, your score won't be as high if you are unemployed as someone that is employed. It may be this or it may be this and a combination of other things too.

15-12-2005, 12:31	#21
Vashta Nerada Forum Member Join Date: May 2004 Location: Barry, South Wales Posts: 4,382	Iv had 2 contracts from 3 this year & im unemployed they seem to give phones to just about anyone.

DS Forums

Pulled Out Of 3 Contract Now Can't Get Any Contract?

15-12-2005, 13:48	#22
lalaland Forum Member Join Date: Dec 2002 Location: UK Posts: 11,539	Quote: Originally Posted by robcole2004 Iv had 2 contracts from 3 this year & im unemployed they seem to give phones to just about anyone. You obviously pass their requirements, which some people won't do. Being unemployed will have more than likely lowered your score too, but obviously you have other factors affecting your scoring. Having said that, not all companies credit score, some just go on a credit report on it's own.

15-12-2005, 19:02	#24
stevejk75 Forum Member Join Date: Aug 2004 Location: Kent. Posts: 805	I have just cancelled my contract with 3.After 2 days, they are utter bilge.See my other thread 3 have driven me insane.

15-12-2005, 22:59	#25
stonard123 Forum Member Join Date: Dec 2004 Posts: 100	Quote: Originally Posted by lee18xx T-Mobile is the easiest network to get a contract with - even more so than Virgin. They may ask for a deposit, but this is usually refunded within six months. If I remember correctly, Virgin Mobile's credit checks are controlled by The CarphoneWarehouse (therefore they are quite strict) whereas T-Mobile are crying out for customers. Getting a pass on the Virgin network is the same as T-Mobile (Virgin use the T-Mobile network) Networks (easiest to hardest) to get a pass on are as follows: Three Orange T-Mobile o2 Vodafone If you have been declined on the other 4 networks then no matter which company you go for, the result will always be the same, its the networks that decide on what credit score you need not the company that you are trying to buy a deal through.