Damo90
Level 1: Cadet

New credit check system?

I have been a Telstra customer for around 17 years, I have had contracts with Telstra for around 14 years and never had an issue. Currently I have NBN, an Ipad, my current plan and my wifes plan on our family account and there is no issue. But last night I decided to upgrade to a new phone, with the same medium plan im currently on, yet was declined due to a credit check! I currently pay $444 a month and would have saved $3 a month if I had converted to the new plan, yet apparently Telstra is now saying I would be a risk in paying it. From the $65 plan im on, the most they will offer me new is $41. What the hell is going on in their system? I direct debit each month and have not missed any payments and my credit score (checked last night after this rejection) is over 750. Can someone explain why Telstra is happy to have me pay $444 a month but thinks id be a risk paying $441? Very disappointed and likely to shut all accounts and move to optus unless this is fixed

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11 REPLIES 11
Jupiter
Level 25: The Singularity
Level 25: The Singularity

Re: New credit check system?

Without being able to see what comes up on the credit check (credit score doesn't really mean much - it's largely a marketing gimmick), it would be impossible to say why it rejected you.

Never be afraid to back yourself when trying new things, just always make sure you have 3 escape routes if things go wrong.
Damo90
Level 1: Cadet

Re: New credit check system?

I ran credit checks last night via the companies Telstra uses (I thought maybe someone had used my identity and taken out a credit card in my name), all aspects of the credit checks came up as clear, no defaults, no outstanding debts, no credit cards in my name. So the check was perfectly clear. This is the thing, it shouldn’t be impossible to say why they are only offering me $41 plans when Im currently on (and paying on time) a $65 plan. This seems like either a system error or new policy that has to be fixed

Dowser
Level 21: Augmented
Level 21: Augmented

Re: New credit check system?

Be careful not to run many credit checks. It was discussed in a previous thread that it can have an adverse impact on your credit score.

Jupiter
Level 25: The Singularity
Level 25: The Singularity

Re: New credit check system?

The acceptance criteria that Telstra uses is based on a "capacity to pay", not just a Credit Check (put in place a couple of years ago by the ACCC). So you they may have judged that you do not have the earning capacity to pay for what you are signing up for.

 

The only way to find out would be to ask Telstra (either via 132200 or Chat in the My Telstra app).

 

When I said that "it was impossible to say", I meant for anyone in this forum. We have no access to your Credit Check or your Telstra account.

Never be afraid to back yourself when trying new things, just always make sure you have 3 escape routes if things go wrong.
GLOBAL
Level 1: Cadet

Re: New credit check system?

Steer clear of my chat at all costs 

Damo90
Level 1: Cadet

Re: New credit check system?

Again, I am on a higher plan at the moment and pay it off every month on the day, AND the contract I am on was started march this year. I decided to buy out the current phone and upgrade. What I’m telling you is, their system is a joke if they think my $120K+ salary, nil credit cards and current higher bill does not meet their ‘capacity to pay’

 

Im not looking for you to make excuses for telstra, I want to know what they are doing wrong

Jupiter
Level 25: The Singularity
Level 25: The Singularity

Re: New credit check system?

I can't tell you what they are doing wrong.

 

I can however tell you what you are doing wrong. You need to contact Telstra support, not ask the question in a public forum where nobody has access to the information to give you the answer you are looking for.

Never be afraid to back yourself when trying new things, just always make sure you have 3 escape routes if things go wrong.
Mmickmm
Level 1: Cadet

Re: New credit check system?

So far telstra has been an abolsute disaster for me as well.

I am currently with Vodafone and want to transfer to telstra, predominantly for reception purposes. 

 

I went into a store and had to wait hours to be told my credit didn't pass.... I was previously with telstra about 6 years ago on a pre paid device and never had debt or money owing.

 

I have never missed a payment with Vodafone and don't have any debt with anyone, I'm also on a high income, under contract within the finance industry so my credit score is exceptional. They told me that I needed to go on a plan for 6 months before I could apply for a phone but then followed up by saying I wasn't even viable for a plan....... they gave me absolutely no reasoning behind why. 

 

This explains a lot of what I've been hearing lately of how poor Telstras customer service is.

 

 

Dowser
Level 21: Augmented
Level 21: Augmented

Re: New credit check system?

You could try signing up with Belong instead.

Mmickmm
Level 1: Cadet

Re: New credit check system?

I would in a heart beat, though I go to rural areas and need the reception. I'll be suggesting to anyone in urban areas not to go with telstra though, from my experience so far.

Vodafone wasn't bad at all, just not as good reception.

Dowser
Level 21: Augmented
Level 21: Augmented

Re: New credit check system?

Sorry, but I meant Boost.

They have access to the whole Telstra 3G &.4G network.

Set it & forget it

With direct debit there’s no need to give paying your bill another thought.

Avoid queuing up and never worry about late fees again.

Setup direct debit