Rejected finance - why?

[CucumberCool]

Denied finance with klarna! It was for £399 phone (17.99 a month). Interest free.

My credit rating according to Experian and credit karma is 'excellent'.

I earn just shy of 26,000£.

I have a accounts with 3 clothes shops/catalogues, no money oweing...

Why was denied? I have no outstanding debt.

As I big purchase I wanted to boost my credit rating at the same time. Im thinking of using my excellent credit rating to get a credit card and pay for it that way.

I have enough savings to buy with credit card then pay of fully a month later.

Is this a good idea?

I don't want to go down the traditional phone contract route as you end up paying so much more for the phone than it would ever be worth.

I think a credit card is definitely my best bet then, looking at your responses.

I keep reading on the credit rating websites that actually having more credit available is a good thing and boosts your score. Hence the clothes shops credit accounts...

I hadn't realised klarna worked as you guys have described. I'm almost glad it didn't work now!

Thanks for all the advice!

@KILM ah, that's interesting. Thanks for letting me know. I'm no where near actually speaking to a mortgage advisor but good to know for future.

Look at MSE credit club and also MSE credit card checker for those you are most likely to be approved on.

I didn't have good credit at the time and I got accepted years ago! However I wouldn't recommend it! It's just too easy to use and I would just recommend using cash or credit card!

@locomocol same as me I love klarna for the try before I pay and returns are so easy

klarna will accept you you have to keep applying everyday (sounds mad ) but apply everyday and I bet before 2 week are up they have accepted you
I got told to do this with the argos card by a member of staff as I kept getting refund and now I have one

Kept getting refused not refunded lol

That was really bad advice for applying for an Argos card. The more searches on your credit recovered the worse it looks.

If you want to look at getting a mortgage these are things you need to focus on
Make sure you are registered on the voters roll at your address
Ensure that there are no missed or late payments on accounts
Have a well conducted bank account where there are no excess charges or constant overdraft usage

Then providing you can prove your income, you pass the affordability checks and the property is deemed suitable you will be fine. Credit score is a make believe concept. The bank will do a credit check on you but as long as you have something on there and it's well conducted it will be fine
Current account, mobile telephone accounts, car insurance etc might all be on there

Not sure why everyone is saying Klarna is for those with bad credit / lower incomes etc. You don’t have to use the whole credit / monthly payment option - I just order stuff and pay for what I want to keep. It works really well as I can order ££££ from asos or wherever and don’t actually see the money leave my account and then just keep the £20/30 worth that actually fit me.

I wouldn’t buy a phone or a big purchase like that monthly on it. I’d buy that either on a proper contract or using a 0 credit card.