Phone shows as a "loan" in my credit file

[medialook]

Hi there. I have filled a trigger and upgraded to a new iPhone. I've been with Vodafone several years already but for the first time phone shows as a loan in my credit file. This is very disappointing as  my credit file dropped - if I was aware about the change I would have buy sim only and buy device for cash. Can this be removed for my credit file? 

 

[medialook]

The " loan" in my credit file shown up after 14days period. Will contact customer services to see what they can do about it. 

[hrym]

It may be possible to pay off the device part of the contract and I assume the loan would then disappear.   If you do that, the Airtime part drops back to rolling 30 day as well.

[nolimit966]

I've got the same problem. The bad thing is my mortgage which is currently being processed could now be knocked back unless this loan is fully repaid before my mortgage starts as I said I don't have any loans but this comes up as a loan on my credit file. They should explain this clearer when buying the device in store as I could of chosen to go with a different network. 

[Pbstripey]

I have a business account and the same happened to me.  I have 5 phones on this account and renew regularly - I have never had a separate credit account appear before.

I was not made aware at any point that this would appear as a personal loan and it has significantly impacted my credit rating.  

as far as I’m concerned this is clearly MIS selling as I would absolutely never have upgraded if I knew this was a loan.

like the previous this turned up on my credit file today Saturday 30 April and is dated 9th March!!!   So the 14 day cool off is irrelevant.  

bottom line …at no point did the store staff say - this is a personal loan application or you will see a new account in your credit file ….clearly mis-sold 

[simax]

Even if you pay the device loan off, it’ll stay on your credit file for 6 years, it’ll just show as “settled” instead of being an open account.

It is clearly stated when upgrading or signing up and it also states this when agreeing to the terms and conditions that it’s a handset loan.

I seriously doubt a mobile phone handset loan would throw a mortgage application out…. Seems a little extreme…

[angelafoxymoore]

I've just noticed this on my credit report too and like you my credit rating has dropped. I'm in utter shock. I wasn't aware that a mobile contract would show as a personal loan on a credit report. If I had I would have stayed with sim only.

[Mark]

I'm sorry for any confusion @angelafoxymoore, when you take out a new connection or upgrade with us, we usually perform a credit check and a new file would be created. As you now purchase your phone separately via a loan, a separate file for this would be added to your profile. You can find more information about our EVO plans here.

[hrym]

Bear in mind that having active credit agreements can actually improve your status as a new lender will be able to see that they're being managed effectively.  You'd only have a problem if the total amounts outstanding (and therefore payments due) became too much of a percentage of your income or there were a lot of recent ones that suggest a drop in your circumstances..   The "score" figures given by credit monitoring apps/sites are fairly meaningless.

Conversely, having no credit agreements can make it harder to get one as there's no history to go on.

[Dan10009754]

Incorrect the loan is provided by Vodafone Limited not pay pal