Page 1 of Renewing Mobile Phone Contracts....affects Credit Rating ?

Is this a windup ?

I`m on month 11 of my 12 month contract with a mobile operator. I intend to cancel (giving the usual months notice) and get another phone on another 12 months contract, perhaps with the same operator or another operator (depending upon the deal). I normally do this via 3rd party sites such as e2save, CPW, etc.

The operator tried to convince me to `upgrade` but I told her that she would be unable to match the price that I have enjoyed for the last 11 months because the phone was on a special clearance deal last year. £2.99 effective per month, for 200 mins talk across anynetwork (for 12 months). So, there was no way they could get me to `upgrade` unless they matched the price.

I told her that for the last 5 years, my mobile phones were always clearance phones on 12 months contract with very special deals and on each occassion I have cancelled the contract at the end of the 12 months and bought another phone (on another 12 months contract) because this method tends to be cheaper than upgrading. (How cheap is 12 months for £0per month ,via cashback, for example)

She said, if I were to do this then I would loose the browny points accumulated on this phone.

Anyway, the operator then dropped a bombshell and stated that each time I terminate a mobile phone contract and get another mobile on another 12 month contract (either with the same operator or not), I am inviting a credit check each time which will go against my credit rating because a credit check is being made.

Is this true ?

I have 2 phones on 12 months contract (one for me and one for the missus), and every year I terminate the contracts @ months 12 , and get 2 more for the next 12 months.

So, according to her, every year this means that at least 2 credit checks are being done on me for 2 mobile phone contracts.

How does this count against me, if I have been paying by direct debit each time and on time ?. I`ve never had a mobile contract refused but I am concerned that if I were to take out a loan then the companies may not like me terminating contracts every year. But, I thought this is what people did with mobile phones.


>:( >:( >:(

This item was edited on Monday, 12th November 2007, 16:20

Quote:
I am inviting a credit check each time which will go against my credit rating because a credit check is being made.


Well, yes, obviously. How did you take out 10 seperate contracts and not realise that?

I wouldnt let her panic you as II doubt it will adversely effect your rating, if you arent going crazy else where, but you are getting checked with each contract.

Yup, I was having trouble getting a loan, so I did a paid for an Equifax profile thing and basically because I had took a new phone contract out, rented a house and got one credit card I was seen as high risk.



My DVD collection

This item was edited on Monday, 12th November 2007, 16:31

i`ve had upto 4 contracts running at one time, & have paid them of early, or depending on the cost let them run out & cancel, never had a problem.

A credit check is not always a bad thing, builds up your credit rating as long as you don`t get into arrears\incur bad debts.

Going to have to "start" from scratch next year, that worries me far more.




I consider myself an optimist, albeit an optimist with cynical tendencies and a dark side that Lucifer himself would find a little creepy. (Perhaps you've noticed.) You don't normally associate cynicism with an upbeat pov. But I have exactly that combination and will defend it.

I hate answering the phone at work - It disturbs my sleep.

She`s talking A-B-S-O-L-U-T-E B-A-L-O-N-E-Y!!!

If she knew anything about credit scoring, and also the FSA`s policy on mentioning a customers credit policy - then you would have not been posting about this, no doubt...

Firstly, although eveyone here is correct in saying - yes - you will be searched through either Experian or Equifax - what she failed to mention, is that 3 months after the search has been done, all of the credit points are restored, as you`ve paid all your bills - thus proving you are trustworthy and NOT a risk to anyone else. This will then continue til the end of the year.

Mobile contracts demand a far less severe search on your file - it`ll even allow for old defaults if it shows that you`ve been good for the last 2 years! :)

Don`t worry, everything will be fine - the fact you an get a mobile contract means you`re credit worthy. Ignore chumps like e2save and cpw, their call centre people are lousy to say the least! I know, i used to work for them!...

Cheers

Dave

ytseW[at]reweiveR/DaveKDneon.gif">ytseW[at]reweiveR/DaveKDneon.gif" class="forumImage" />