Surfdayssun · 15/01/2021 15:57
Has anyone used a Nextpay account. I’m looking to buy a sofa and although we have the money to buy upfront, I quite like the idea of paying it off per month with no added interest (as long as you make every single payment) and not loosing the lump sum in one go. However when I clicked apply, it said they wouldn’t offer me one? I have a good credit score, no credit card debt etc, the only thing we have is a mortgage which we have been paying for just over 5 years and never missed a payment. Have I missed something in the way people are accepted?
RickiTarr · 15/01/2021 16:14
It could be that you don’t have enough credit for their algorithm to calculate your risk by. If you only have two or three entries on your credit file, that’s known as a “thin” file and that can cause you as many problems as adverse data.
Have a look at your Experian and or Equifax file on a free trial and see what is on there. Check all the info on there is correct.
Make sure your bank account is being reported to the credit agency, that you are on the Electoral Roll.
If all of that is okay, look at ways to build history without wasting money. A SIM only contract is a good way to improve your credit.
tubbycustardtummyache · 15/01/2021 16:16
A similar thing happened to me years ago. It was because I wasn’t on the electoral roll. No problems after I put myself on it!
Skullcup · 15/01/2021 16:18
No idea sorry. I've had mine for ages, before I lived in my current home and had kids.
Do check your credit file on things like Experian, Clear Score etc. Most have a free period to allow you access to everything.
Make sure you are on the electoral register at your home address. That's usually where people come unstuck for no reason.
MogHog · 15/01/2021 17:35
You have to pay the full balance on the account each month to avoid any interest charges on Nextpay. So if you purchased a £800 sofa you would need to pay the balance in full that month before the next statement to avoid paying any interest.
They do offer IFC but that needs to be taken out in store.
shinynewapple2021 · 15/01/2021 18:09
I have Nextpay on my clothing account, I've had it for years and years . It may be that you would more likely get it for bigger amounts like a sofa if they saw you paid off some jeans. I pay a lot of interest overall though, I'm not sure that it's any better than a credit card .
Surfdayssun · 17/01/2021 11:05
@MogHog oh I think I have totally miss understood this. When it said you have to pay the minimum each month which is either £5 or 5% of what you purchased, I was thinking that’s all you had to pay to avoid the interest. Is that not how it works? If so what is the £5/5% for? Not that I only wanted to pay off that much we would be paying off more but what are they actually offering then because if you have to pay the amount in full the same month then I might as well just purchase it in one go from my bank?
gingajewel · 17/01/2021 13:21
The £5/5% is the least you can pay off your account every month, I believe it’s whatever is the lowest one, however you do get interest added every month if you don’t pay off the full balance.
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