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(UK) iPhone Activation Credit Checks

D

Devil's Refugee

macrumors 6502
Original poster
May 14, 2007
316
0
Is anyone slightly concerned that they are buying a device before they've been credit checked for the actual O2 tariff ?

I've never had a credit problem before, but I've moved house 3 times in the last 5 years and knowing how the credit scoring system works I'm expecting some half-assed message about having to provide evidence of my current address. Again, it's not a problem to do this but I don't want to fork out a wad of cash for something I might have to wait to use (or even be refused!) whilst the slow gears of customer service start moving......

I find the back-to-front process a bit bizarre to be honest. You don't walk into a car showroom and drive off with the car before getting finance for it (must as I'd like to though lol)
 
It's for exactly this reason I expect there to be a 'hidden' payg option in the same way there is on AT&T in the US.

I suspect it will only be available for those that actually fail the credit check, because they obviously want people on contracts if they are able to get them.

It must surely hurt their sales though - especially in a country that has significantly more PAYG users than contract users (through choice in many cases).
 
1. You're buying the phone, but under no obligation to keep it if you fail the credit check.

2. UK Laws state that you have 14 days (even after signing a contract) to return a mobile phone if unhappy with it - for a full refund, no questions asked. I've done this a few times - a company cannot refuse a full refund.

3. It's pretty much impossible to fail a credit check for a mobile phone here. You can have several defaults, five addresses in the last two years, and arrears all over the place, and they'll still sign you up.
 
o2 use equifax for their credit checks, so if you're worried you can always go to the equifax website and run your own check (for a small cost I think). Might save you having to return a phone after getting all excited!
 
bigandy said:
3. It's pretty much impossible to fail a credit check for a mobile phone here. You can have several defaults, five addresses in the last two years, and arrears all over the place, and they'll still sign you up.
Click to expand...

I think I almost failed once, and it was o2's fault. On a previous contract they had not passed on the correct data to equifax, and I was marked down as being in default, but for the sum of £0.00! This, however, meant I was still a defaulter!

When I returned to the UK after a year away and tried to take out a new contract online, the credit check took days and days. I then got a copy of my credit file and had to request a correction. But seeing it was o2 doing the check they might have had the decency to correct it while they were at it.
 
Devil's Refugee said:
Is anyone slightly concerned that they are buying a device before they've been credit checked for the actual O2 tariff ?

I've never had a credit problem before, but I've moved house 3 times in the last 5 years and knowing how the credit scoring system works I'm expecting some half-assed message about having to provide evidence of my current address. Again, it's not a problem to do this but I don't want to fork out a wad of cash for something I might have to wait to use (or even be refused!) whilst the slow gears of customer service start moving......

I find the back-to-front process a bit bizarre to be honest. You don't walk into a car showroom and drive off with the car before getting finance for it (must as I'd like to though lol)
Click to expand...

Well this is different, normally they're subsidising a handset for you, here you're already paying for the handset in store. The 'credit' is therefore just for calls etc that you make, for which they won't make as big of a loss.

Personally I love the idea of DIY activations rather than fannying around in a store - and since they're not subsidising the handset I wouldn't worry about the credit score, it'll be much lower than on a normal contract. I'm like you - moved around a bit and personally I've just emerged from being a student so my rating isn't great, but I've not had problems with phone contracts.

-Leemo
 
Just popped in to local 02 store (Birmingham Bullring) and asked about the situation if you did fail the credit score. Their answer was basically "hard luck" and said they would not be offering a PAYG option for it.

As for time the iPhone goes on sale. A very sad (but no doubt thought up by the marketing department) 6:02 pm.
 
scotthayes said:
As for time the iPhone goes on sale. A very sad (but no doubt thought up by the marketing department) 6:02 pm.
Click to expand...

You are kidding?

Jesus. You can just imagine the meeting they had to cook that one up can't you!

Well at least I can go and get in line after I finish work at 2!

-Leemo
 
perhaps you could do the credit check in an o2 store before you buy the phone? maybe there is that option.
 
Leemo said:
You are kidding?

Jesus. You can just imagine the meeting they had to cook that one up can't you!

Well at least I can go and get in line after I finish work at 2!

-Leemo
Click to expand...


I had to stop my laughing when he told me. but some how don't see to many people queueing for them.
 
Leemo said:
Well this is different, normally they're subsidising a handset for you, here you're already paying for the handset in store. The 'credit' is therefore just for calls etc that you make, for which they won't make as big of a loss.

Personally I love the idea of DIY activations rather than fannying around in a store - and since they're not subsidising the handset I wouldn't worry about the credit score, it'll be much lower than on a normal contract. I'm like you - moved around a bit and personally I've just emerged from being a student so my rating isn't great, but I've not had problems with phone contracts.

-Leemo
Click to expand...

so how would that work?
how can they change the way the credit score comes out?
 
redgaz26 said:
so how would that work?
how can they change the way the credit score comes out?
Click to expand...


Well they have set levels of credit score that are required for different things. For example a simplicity tariff at the moment has a much lower credit requirement than a full blown contract, for obvious reasons. The same will be true of the iPhone.

With regards to 'no queues' - whilst I was still working at O2 the other week I had tons of enquiries about the iPhone even though I only worked part-time. Many mentioned coming down on the launch day to get one. My store was also one of the smaller stores which has a larger store just down the road. I can only imagine what stores in more prominent positions have had interest wise.

-Leemo
 
Leemo said:
Well they have set levels of credit score that are required for different things. For example a simplicity tariff at the moment has a much lower credit requirement than a full blown contract, for obvious reasons. The same will be true of the iPhone.

With regards to 'no queues' - whilst I was still working at O2 the other week I had tons of enquiries about the iPhone even though I only worked part-time. Many mentioned coming down on the launch day to get one. My store was also one of the smaller stores which has a larger store just down the road. I can only imagine what stores in more prominent positions have had interest wise.

-Leemo
Click to expand...


if you think about it why even have a credit check for something that you have just paid £269 for? I would quite happily pay my £35 in advance every month, when you run out of mins and texts that's you finished till the next month, is that how prepay works in the US?
while you were working for 02 did you find out anything about payg and how it would work, i've read elsewhere you would require a different sim.
 
redgaz26 said:
if you think about it why even have a credit check for something that you have just paid £269 for? I would quite happily pay my £35 in advance every month, when you run out of mins and texts that's you finished till the next month, is that how prepay works in the US?
while you were working for 02 did you find out anything about payg and how it would work, i've read elsewhere you would require a different sim.
Click to expand...

It's a credit check because of course you're using first then paying, they no longer offer the option of paying in advance. I know that's daft - it's just they're no longer allowed (by law) to have set 'limits' on a phone account.

Prepay-wise there's nothing confirmed at the moment, they were still discussing ideas around it whilst I was there. It would involve you using the simcard that comes with the phone. They mentioned it wouldn't be PAYG in the traditional sense as we're used to - and may require that you have a set charge for browsing etc. We should hopefully know more in the weeks leading up to the launch.

-Leemo
 
Leemo said:
Prepay-wise there's nothing confirmed at the moment, they were still discussing ideas around it whilst I was there. It would involve you using the simcard that comes with the phone. They mentioned it wouldn't be PAYG in the traditional sense as we're used to - and may require that you have a set charge for browsing etc. We should hopefully know more in the weeks leading up to the launch.

-Leemo
Click to expand...

It's only one month to go... They should finalised payg option and prepare for the activation system by now I guess?
 
metoo6000 said:
It's only one month to go... They should finalised payg option and prepare for the activation system by now I guess?
Click to expand...


4 weeks on Friday!!!!!!!!!! at last we are getting there!!!!!!!!!!
maybe they won't advertise payg?
will only happen if credit check is failed
 
Sobe said:
Don't pay your credit card bills on time, ignore your student loan bills, go into bankruptcy, etc.

There are lots of ways but that should give you a good head start :p:p
Click to expand...

The US trick is to input a false NI (or equivalent) number. I think the question is: is there a UK equivalent to that technique?
 
I guess the PAYG option in the UK will be PrePay. So you have to top up say a minimum of £15 or £20 at a time. I suspect there will be a minimum you can have as a balance.
 
emotion said:
The US trick is to input a false NI (or equivalent) number. I think the question is: is there a UK equivalent to that technique?
Click to expand...

not really, but there's nothing stopping you from putting in a person with bad credit.

thing is, here, even with bad credit, you could probably get a phone on contract.

and, taking it one step further, putting in a false name and address... you'd probably still get a contract phone.

with all stores NOT accepting cash for the phone, i reckon one of the only ways you'll get one sans contract is by getting a 15 year old with an Electron card to buy it and try getting it activated. but, yes, they'd probably get a contract.

as i mentioned earlier, i don't show up on any registers / credit files (not from anything i've intentionally done btw) yet i can still get credit on anything.
 
well I am hoping for a Prepay option, as last year I had no end of trouble with o2 - Vodafone however said, yeah not problem... so I doubt I will get credit aprroved with o2 this year.....

What would happen then? would I just be left with the iPhone not working?
 
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