Buying something on an installment plan can be plenty stressful just by itself, and when you factor in the possibility of being turned down it can be downright cruel. The embarrassment of failing the required credit check can really put a damper on your day. The more failed credit checks you have on your credit report, the more it impacts on your ability to get credit, and so the cycle continues. But unless you check, how will you know if you fulfil the required criteria? Three UK appear to have the solution to this, with the announcement that they will be providing Pre-credit checks via their website in the near future.
By entering a few simple details such as your name, address and birthdate, Three will perform what is known as a 'soft' check against you, and while the 'soft' check is still visible on your credit report, other lenders will not be able to see them, and they won't impact on your ability to gain credit in the future. The thing to remember about these so-called 'soft' checks is that they only give an indication as to whether you qualify for credit. There is still a chance that the 'full' credit check will return a negative result.
Three haven't rolled out the pre-credit check facility just yet, though they have said it is 'Coming Soon'. In the meantime, they are asking for customers input as to whether they would consider purchasing a rolling 1 month SIM only plan for 3 month period, with the possibility of it help to build up the customers credit score and also if they would consider paying a higher upfront amount ranging from £50-250 (with a correspondingly lower monthly subscription) in order to get the handset they desire. Finally, they ask if an alternative finance scheme would be acceptable, although no details of this 'alternative' scheme are available as yet.
On the face of it, Three's proposed Pre-credit check isn't a bad thing for the consumer, though naturally this isn't just out of the goodness of their heart, Three almost certainly expect to gain more customers by giving them more ways to get the handset that they so desire. Together with yesterdays news of Three officially confirming that all of the phones they supply are unlocked as standard, it certainly gives the impression that Three are stepping up their customer service a notch or two.
Would the Pre-credit check be of interest to you or someone you know? And is it something you would like the other carriers to roll-out? Let us know in the comments below or at our Google Plus page.