RateSetter's demise and klarna comes in what changes do you want to see

bluemoonbaz

The ratesetter buying experience seemed to be a hit and miss experience for the buyers .
What would you like to see changed with klarna ?
Klarna

For me phones reserved whilst waiting on decision

shabazmoqsud

bluemoonbaz ive seen countless posts on H&S about phone purchase through ratesetter
hope a better experience with klarna for the members that want to buy from giffgaff me personally going to steer clear of phone purchase from giffgaff whether new handsets or refurbished. giffgaff track record is horrible especially when they outsource to 3rd parties to do alot of the work.

endorphin

bluemoonbaz For me phones reserved whilst waiting on decision

Or a quicker decision! 😉

danwillen

bluemoonbaz For me phones reserved whilst waiting on decision

From antonlg Reply here the desision is nearly instant meaning the whole buying process with lone should tack no more than a few minutes more than paying out right and we don’t see problems of phones becoming unavailable when been perchesed out right so hopefully will be same for buying with lone now.

woodyuk

bluemoonbaz I think there’s one very important thing to bear in mind when this changeover happens and that’s unlike Ratesetterr,Klarna will be carrying out hard credit checks on anyone applying for a loan to buy a giffgaff phone and the result of that check will show on your credit history.

Currently I see plenty of threads in H&S where members ask if it’s worth them applying for a phone loan because they have a bit of an iffy credit history and the regular helpers tell them "yes go ahead because if you get turned down it won’t affect your credit score"but newsflash,the minute Klarna are conducting the credit checks,if you get turned down for a loan it will have a negative impact on both your credit score and credit history so regular helpers need to be made aware of this change and adjust the advice they give to suit.

rickvigorous

bluemoonbaz hope this also means we’ll be able to take payback in Klarna funds in the future!

jaycee113

bluemoonbaz My experience of Klarna so far:

I went to the Samsung website ahead of the launch of the new Galaxy S20+ 5g and tried to order one using the standard Samsung finance offering - no luck with that. I noticed that they also offered Klarna as an option - so I tried that and was offered finance. The phone, which was to be delivered earlier than the stores would have it, was priced at £999. I was offered a £200 trade in for my S8+ which left me a balance of £799 to fund. The Klarna deal was that I would pay a 10% deposit immediately and they would then slice the payment into 24 monthly amounts interest free. (They offer the option to pay a minimum payment over a longer period with interest if required). They are a bank that is becoming common on the internet as a means of payment on a lot of websites - very convenient once you have an account with them. They usually appear as a payment option in the basket and at checkout. This means that you cannot order goods that are not in stock prior to accessing Klarna as a payment option. I have just bought a bicycle from Halfords as a Christmas present and opted to pay for it over 12 months interest free.

egglassa

bluemoonbaz let’s hope for a better experience for members

bluemoonbaz

endorphin I hope its a lot smoother a quicker experience

bluemoonbaz

danwillen let’s hope we get slick process.
No order wait ..re order wait

kathleen414

Maybe this https://community.giffgaff.com/d/33192867-buying-a-phone-with-credit

kathleen414

woodyuk thank you woody, I didn’t know that ☹️
That’s going to hit a lot of members and could put them off buying a giffgaff phone

bluemoonbaz

woodyuk kmichael
Thanks a big change and one I didn’t know about or I bet most helpers didn’t 😕 either.
Thanks for the head up

clikasarus

woodyuk regular helpers need to be made aware of this change and adjust the advice they give to suit.

Already on it my friend , I would love to know what Procedure Klarna has on a application once it has been Applied for
I hope it’s nothing like what ratesetter do making members go back into the application and reorder😳 that’s been very confusing for members

jaymailsays

woodyuk I think there’s one very important thing to bear in mind when this changeover happens and that’s unlike Ratesetterr,Klarna will be carrying out hard credit checks on anyone applying for a loan to buy a giffgaff phone and the result of that check will show on your credit history.

Wondering if there was much difference between either of the two lenders. Apart from the Article emphasis on ‘Hard’.

If you are spreading the cost of your phone by signing up for a peer 2 peer loan then you will be credit checked as part of the application process.

You will be asked for your UK home addresses over the past 3 years in order to complete the check. Make sure to provide complete and accurate information during the purchase so the credit check will be run under the best conditions.

You can use external agencies to find out your credit score. You can also talk to your bank or a personal financial adviser about your credit score and the best way to improve it.

And Klarna ⤵️

Does Klarna do a hard credit check?

Yes. Similar to all traditional finance providers, any giffgaff members interested in a long-term Klarna payment plan will require a hard credit check.

jaymailsays

woodyuk hard credit checks on anyone applying for a loan to buy a giffgaff phone and the result of that check will show on your credit history.

Looks like hard credit check was quietly added on Friday on the helper’s thread.

https://community.giffgaff.com/d/22269542-changes-and-new-features-helpers-updates-thread/86

woodyuk

kathleen414 & bluemoonbaz I only found this out because as part of the KB editors group,one of the things we do is proof read any new help hub articles before they’re published and point out anything that’s missing or needs changing and part of what will be the new guide for buying a phone with a loan once Klarna take over says this:-

Does Klarna do a hard credit check?

Yes. Similar to all traditional finance providers, any giffgaff members interested in a long-term Klarna payment plan will require a hard credit check.

Also,as pointed out by kmichael Klarna’s own page on how things work says:-

Financing is dependent on a full credit check, a customer’s previous credit history, an affordability assessment, their age and several other factors, including at what time they placed their order. This credit check can influence a consumer’s credit rating.

So this is quite a big change that could impact a lot of potential buyers if they don’t have a decent credit score/history.

kmichael

@woodyuk Very important info to note (as you pointed out), as the Klarna financing product (not Pay Later) involves a full credit check
https://www.klarna.com/uk/csr/openness/

kathleen414

woodyuk so I guess they won’t be offering pay later with the soft credit check ☹️

woodyuk

kathleen414 no,it’s all going to be done via conventional loans.

kmichael

kathleen414 They should have offered “Pay Later” too - paying in 3 instalments, first one at the time of purchase.

woodyuk

kathleen414 so I guess they won’t be offering pay later with the soft credit check

I did a bit of research into this last night and I think we can definitely say no they won’t.

With the conventional loan system giffgaff get the full price of the phone plus a commission from Klarna.

Things are very different with the interest free,3 monthly payments though because Klarna have got to earn some money out of each deal somehow so giffgaff will be charged about 5% of the price of each phone sold via this system so rather than getting the full price plus a bit extra,giffgaf will only get about 95% of the full price.

There’s also a maximum price per item that can be bought on the 3 month system,I didn’t check the UK maximum but in the US it’s just $250 so if the same applies here it would mean most of giffgaff’s phones couldn’t be bought that way.

kathleen414

woodyuk that’s a shame, I think that will definitely impact giffgaff phone sales, as you say members who were unsure could try without any impact on ratesetter.

johnrooney80

kmichael
kathleen414
The 3 installment plan is good, but likely they’ll lose money due to loss of interest maybe

bluemoonbaz

kmichael They should have offered “Pay Later” too - paying in 3 instalments, first one at the time of purchase.

Yes that would be a good option along side the hard full checked loan

kathleen414

johnrooney80 maybe John

various_mm

johnrooney80 The 3 installment plan is good, but likely they’ll lose money due to loss of interest maybe

just increase the price of the phone to reflect loss of any interest

wedgington

It’s ruled me out I could’ve done 3 instalments but no chance of full credit check and I paid me ratesetter phone off recently grrrr 😁 have to put a plan B into operation if I want my new phone 🤔

bluemoonbaz

wedgington sorry to hear that mate