www.iva.co.uk

Hi All,
I have been with o2 for years now and whilst I was in my IVA (which ended last nov) I took another contract out for my partner, no issues. Im due to upgrade on 2nd May but was in phones 4 u at the weekend and they was going to buy out my contract, so I could start a new one with o2 and get a new handset. However, they did a credit check and of course I failed it! I felt majorly embarassed but I didn't think they were going to credit check me - I thought o2 would just check to see that my account was up to date etc (Ive never missed a payment with them) So will have to wait to upgrade now.
Has this happened to anyone else?
Many Thanks
Sam

If you go through O2 then there shouldn't be a problem as they only check that your account is up to date.

I think the problem is that you went through a third party and as they were going to buy out your contract then they would have done the credit check.

Hi Jan,
Thanks for your reply. It was referred to o2 and they declined it also, maybe they did a new credit check, Im not sure? My partner upgraded his handset through phones 4 u in december (which is in my name) maybe an upgrade is seen differently to a new contract.
Either way, if Id have known they were going to credit check me Id never have gone in the shop. I cant wait till my credit rating is good again, its so embarrasing, you almost feel like a criminal when your declined!

If you were starting a new contract they probably would do a credit check unfortunately even though you are an existing customer. Probably best to wait and upgrade your existing contract.

Phones 4 u were buying you out of your contract so you could start a new contract with them. Which basically means you opening a new credit account with O2 which will get declined due to an IVA.
What you should do is call O2 and ask how much it will cost for you to upgrade early. What ever the cost you will have to pay (which would be the amount phones4u would have paid). That way its basically an upgrade. Its what I did so I could get the Iphone4S. But with upgrading early, you can only do this with O2. If you try to do it via a 3rd party like Phones4u and carphone warehouse you will again be declined (happened to me at carphone warehouse).

Is it worth paying any extra to upgrade early though? If your upgrade date is 2nd May I'd be inclined to wait as it's only a couple of weeks away.

On the subject of Phones4U I was able to upgrade with them while I was in my IVA. However I was staying with the same network and my upgrade was due.

i have recently upgraded online with o2, without any problem, decided to do it online as i felt if i were turned down the embarrassment factor wouldnt be so bad as it would face to face, ( yes i'm a coward) but again been with them for a very long time, online upgrade was easy to do and the phone arrived the very next day.

I think I'd wait as well. I'm able to upgrade a month before I'm due and I've never had any problems. I tend to find the particular phone I want online and then do it over the phone.

Thanks for the comments folks - yes I'm gonna wait now till May!! Roll on the day when my credit rating is good again, it really did get me down...so good with money now too, oh well!! x

I thought that once you were out of your iva then the info is no longer shown on your credit file, this should mean you show that you have no debts / loans / credit cards / overdraft etc and must therefore be low risk....

That can be another problem nickjohn. Having no credit history can be as bad as having a poor credit history.

Agree with Skippy - it's like starting out all over again.

I was recently approached by a company offering a credit card for people in an iva, you get a £100 limit and must clear balance each month.. They say it is to show regular payments on your history and help keep up your credit rating..

If you are in an IVA then you cannot take out further credit without letting your IP know.

How would you fund the payments for this card?

You can build up your credit rating by keeping up bank accounts, mobile phone accounts. Once your IVA is finished you can apply for a card such as Vanquis.

font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by kallis3

If you are in an IVA then you cannot take out further credit without letting your IP know.

How would you fund the payments for this card?

You can build up your credit rating by keeping up bank accounts, mobile phone accounts. Once your IVA is finished you can apply for a card such as Vanquis.

I would assume that as the limit was only for £100 it would be used for paying for things like fuel / food etc. the things you pay for with cash at the moment, it is not like getting an additional line of credit.. Having a mobile phone can be more dangerous as it is very easy to incur a high monthly bill and have no resources to pay it..
Personally I would never have a credit card ever again I believe they are the work of the devil lol..