The Student Room Group

Phone financing

So I've had my phone for 3 years now and the phone is noticeably/significantly slower for the last month or so and have basically ran out of space. Wanting a new phone, so I try to finance a Samsung Galaxy S22 on Samsung's official website with Samsung finance as well as klarna 24 month and PayPal credit but all declined.

I have no outstanding debt other than my student loan, in which I'm still studying and my credit history is good. Obviously not amazingly high score because of my age but still decent.

I'm working part time and sometimes even cover others multiple times a week.

I'm not sure why I've been declined finance from all three finance options that Samsung website offers. The monthly payment would be about £33 which I can definitely afford.

Any help would be much appreciated.
(edited 1 year ago)
Hi

I have also been having a very similar issue to you. I have tried to finance a Samsung Galaxy S22 and i get declined by all the finance options mentioned on the Samsung website. I also don't have financial debt outstanding so i'm quite puzzled as to why i keep getting declined.

Sorry, I know this isn't a solution to your problem but I hope this helps get someone to pick up on this issue we are having.
(edited 1 year ago)
Hi, i have been having the same issue as you. I am also trying to finance a galaxy S22 but have been declined from all the finance options.
Original post by HKhalid95
Hi

I have also been having a very similar issue to you. I have tried to finance a Samsung Galaxy S22 and i get declined by all the finance options mentioned on the Samsung website. I also don't have financial debt outstanding so i'm quite puzzled as to why i keep getting declined.

Sorry, I know this isn't a solution to your problem but I hope this helps get someone to pick up on this issue we are having.


Original post by cos123
So I've had my phone for 3 years now and the phone is noticeably/significantly slower for the last month or so and have basically ran out of space. Wanting a new phone, so I try to finance a Samsung Galaxy S22 on Samsung's official website with Samsung finance as well as klarna 24 month and PayPal credit but all declined.

I have no outstanding debt other than my student loan, in which I'm still studying and my credit history is good. Obviously not amazingly high score because of my age but still decent.

I'm working part time and sometimes even cover others multiple times a week.

I'm not sure why I've been declined finance from all three finance options that Samsung website offers. The monthly payment would be about £33 which I can definitely afford.

Any help would be much appreciated.

You are being declined for finance because your credit score isn't high enough - ironically, this is caused through having a 'thin' credit file without any pre-existing credit agreements to show that you can handle credit properly in terms of managing repayments. In other words, you're not being granted credit because you don't have a history of any successful credit management.

Although this seems a vicious circle (i.e how can you build a credit history which will enable you to get credit when you need the history in the first place), there are things you can do. If you have an existing banking relationship, try asking for a small overdraft but don't actually use it (again, counter intuitive, but overdrafts charge a whopping 35-39% APR in interest). Alternatively, you can try getting a 'starter' or 'credit building' credit card - do a search online for them. Barclaycard Initial is an example - they typically have low credit limits and high interest rates to reflect the credit risk. Only use them for spending you would have done with your bank card (petrol is a good example) and set up a direct debit for the full outstanding balance every month. That way you'll never miss a payment, never pay any interest and never build up an unaffordable debt which you could struggle to repay, so long as you use the card with restraint. This way, you will slowly build up a credit history which will allow you to access other credit products like this phone financing which you are trying to get. It goes without saying that both the overdraft and a credit card would require some sort of income, be that from employment or student finance (where specific student credit cards exist). No provable income = no lending facilities, for obvious reasons.

The other, old-fashioned option, is to save up for it and avoid credit altogether which, for something like a mobile phone, is much the preferred option.
@Chronoscope - do you think this should be in money and finance rather than mobile phones?
Reply 5
I have a overdraft but don't use it. What is the typical credit score needed for a phone contract? Can't seem to find online, maybe there isn't a minimum?
Reply 6
Original post by cos123
I have a overdraft but don't use it. What is the typical credit score needed for a phone contract? Can't seem to find online, maybe there isn't a minimum?


Original post by Reality Check
You are being declined for finance because your credit score isn't high enough - ironically, this is caused through having a 'thin' credit file without any pre-existing credit agreements to show that you can handle credit properly in terms of managing repayments. In other words, you're not being granted credit because you don't have a history of any successful credit management.

Although this seems a vicious circle (i.e how can you build a credit history which will enable you to get credit when you need the history in the first place), there are things you can do. If you have an existing banking relationship, try asking for a small overdraft but don't actually use it (again, counter intuitive, but overdrafts charge a whopping 35-39% APR in interest). Alternatively, you can try getting a 'starter' or 'credit building' credit card - do a search online for them. Barclaycard Initial is an example - they typically have low credit limits and high interest rates to reflect the credit risk. Only use them for spending you would have done with your bank card (petrol is a good example) and set up a direct debit for the full outstanding balance every month. That way you'll never miss a payment, never pay any interest and never build up an unaffordable debt which you could struggle to repay, so long as you use the card with restraint. This way, you will slowly build up a credit history which will allow you to access other credit products like this phone financing which you are trying to get. It goes without saying that both the overdraft and a credit card would require some sort of income, be that from employment or student finance (where specific student credit cards exist). No provable income = no lending facilities, for obvious reasons.

The other, old-fashioned option, is to save up for it and avoid credit altogether which, for something like a mobile phone, is much the preferred option.

I have a overdraft but don't use it and I also do work part time. What is the typical credit score needed for a phone contract? Can't seem to find online, maybe there isn't a minimum?
Original post by Reality Check
@Chronoscope - do you think this should be in money and finance rather than mobile phones?

Moved to Money + finance :smile:
Original post by cos123
So I've had my phone for 3 years now and the phone is noticeably/significantly slower for the last month or so and have basically ran out of space. Wanting a new phone, so I try to finance a Samsung Galaxy S22 on Samsung's official website with Samsung finance as well as klarna 24 month and PayPal credit but all declined.

I have no outstanding debt other than my student loan, in which I'm still studying and my credit history is good. Obviously not amazingly high score because of my age but still decent.

I'm working part time and sometimes even cover others multiple times a week.

I'm not sure why I've been declined finance from all three finance options that Samsung website offers. The monthly payment would be about £33 which I can definitely afford.

Any help would be much appreciated.

Credit score most likely, or perhaps an inability to verify your identity.
Original post by cos123
I have a overdraft but don't use it. What is the typical credit score needed for a phone contract? Can't seem to find online, maybe there isn't a minimum?

There probably is, but I suspect it's really low. Do you have much of a credit history at all? Have you tried looking at your credit score?

The only other suggestion I can offer is to look at a budget phone. IIRC Samsung does have some decent budget options. Likewise, Xiaomi/Redmi have some solid options as well that, again, IIRC, are rather feature-packed for their price range. You're really better off getting a sim-only deal and buying a phone outright because ultimately, you'll end up paying a few hundred less for the phone, it's just that initial hit to the funds that sucks.
Reply 9
Original post by TheMcSame
Credit score most likely, or perhaps an inability to verify your identity.

There probably is, but I suspect it's really low. Do you have much of a credit history at all? Have you tried looking at your credit score?

The only other suggestion I can offer is to look at a budget phone. IIRC Samsung does have some decent budget options. Likewise, Xiaomi/Redmi have some solid options as well that, again, IIRC, are rather feature-packed for their price range. You're really better off getting a sim-only deal and buying a phone outright because ultimately, you'll end up paying a few hundred less for the phone, it's just that initial hit to the funds that sucks.

The phone I was going to get was S22, and Samsung offers 0% finance with Samsung finance option.

I've checked my credit score and yes it is low but I wouldn't say terrible for my age. (low 400s)
If you’ve tried twice; I’m assuming they’ve ran hard credit checks? Then I wouldn’t be looking again for at least 6 months as you’ll look desperate for credit and the 3 rejections will make lenders thing something may be up
Original post by cos123
The phone I was going to get was S22, and Samsung offers 0% finance with Samsung finance option.

I've checked my credit score and yes it is low but I wouldn't say terrible for my age. (low 400s)

Most lenders aren't too keen on part time/limited earnings and don't generally count student funds as income.

Exact credit score requirements will vary... but it's not a figure they'll publicly discuss and it will depend what credit agency gave you this score (Equifax or Experian) but basically 400 is Poor/Very Poor accordingly, the worst category. With this many/most lenders with be a hard 'No'.

(Equifax used to give ratings up to 700, so 400 was above average.. now that they use 0-1000, its considerably worse)
(edited 1 year ago)
Original post by StriderHort
Most lenders aren't too keen on part time/limited earnings and don't generally count student funds as income.

Exact credit score requirements will vary... but it's not a figure they'll publicly discuss and it will depend what credit agency gave you this score (Equifax or Experian) but basically 400 is Poor/Very Poor accordingly, the worst category. With this many/most lenders with be a hard 'No'.

(Equifax used to give ratings up to 700, so 400 was above average.. now that they use 0-1000, its considerably worse)


I’d say OP’s mistake here was trying to get but now pay later credit with Samsung or Klarna and not a mobile contract from Thee/EE/Vodafone. I think (even though really it’s the same, buy now pay later in a sense) they have lower thresholds and criteria. The first thing many people do in their first part time job is a brand new phone from my experience
Gentle reminder that credit scores are mythical made up numbers and cannot possibly represent everybody's lending criteria.

It's your credit history (amongst other factors) that determine your eligibility.
Original post by IWMTom
Gentle reminder that credit scores are mythical made up numbers and cannot possibly represent everybody's lending criteria.

It's your credit history (amongst other factors) that determine your eligibility.

Yeah I know what you mean, but it was the score they asked about, they don't mention having any credit history to comment on.
Original post by StriderHort
Yeah I know what you mean, but it was the score they asked about, they don't mention having any credit history to comment on.

Then we should be educating on that rather than letting them keep believe their number is relevant!
Original post by IWMTom
Then we should be educating on that rather than letting them keep believe their number is relevant!

... ... I just don't feel like being that helpful :argh:
Original post by cos123
The phone I was going to get was S22, and Samsung offers 0% finance with Samsung finance option.

I've checked my credit score and yes it is low but I wouldn't say terrible for my age. (low 400s)

Okay, and what about history? Are you on the electoral register?
Reply 18
Original post by gandalfslipper
I’d say OP’s mistake here was trying to get but now pay later credit with Samsung or Klarna and not a mobile contract from Thee/EE/Vodafone. I think (even though really it’s the same, buy now pay later in a sense) they have lower thresholds and criteria. The first thing many people do in their first part time job is a brand new phone from my experience

Samsung finance is a contact. Its just through them and not a mobile service provider.

Original post by TheMcSame
Okay, and what about history? Are you on the electoral register?

Yes I am
Original post by cos123
Yes I am


I know what it’s a financial contract, my point was contracts with phone providers are generally a little more lenient.

In any event don’t apply for more credit in the next few months. Download free copies of your reports from Money Saving Expert Credit Club (Experian) Credit Karma (Transunion) & Clearscore (Equifax) and go through your report in detail just to check there’s nothing amiss on there.

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