these rejection rates demonstrate a different strategy with some companies prepared to take a more of a gamble to fill their order books and others choosing to play it safe by only targeting better off consumers they perceive as being low risk
Guidlford, Surrey (PRWEB) December 4, 2008
During October and November broadband comparison site Broadband Expert has witnessed on average 1 in 2 sales sent to retailers offering a mobile broadband and free laptop deal rejected after running a credit check.
In the run up to Christmas, Broadband Expert has seen a huge rise in the popularity of mobile broadband and free laptop deals, yet one mobile provider has rejected over 75% of sales after running credit checks. Broadband Expert Commercial Director Rob Webber believes certain retailers and mobile providers are being overly cautious, "companies are spending huge amounts on advertising campaigns promoting these offers yet when the consumer comes to sign up, there is a strong chance they will be refused based on a credit check".
Webber sees a certain irony in the high rejection rates of these contracts since the offer of spreading the cost of a laptop over an extended period is "particularly popular with students and those on lower incomes who can not afford the upfront costs of a new laptop, yet these are the people most likely to be excluded from these offers."
Most mobile broadband and laptop deals have contract periods of between 18 and 24 months with a typical monthly cost of £25 to £40. Since these contracts carry no upfront charge for with the laptop or the dongle, there is a significant level of risk for the retailer. Webber believes the "stringency of credit checks is an interesting barometer of the confidence retailers have in consumers meeting repayments with many only unwilling to extend these deals to those without a very good credit rating".
Broadband Expert noted a substantial difference in rejection rates between companies offering these deals with some having rejection rates of less than 1 in 2 whilst others turned away more than 3 in 4 customers. Webber notes that "these rejection rates demonstrate a different strategy with some companies prepared to take a more of a gamble to fill their order books and others choosing to play it safe by only targeting better off consumers they perceive as being low risk".
About Broadband Expert:
Broadband Expert ( http://www.broadband-expert.co.uk ) is part of RichWeb Media Ltd, a privately owned UK company. We aim to provide expert advice and information to allow consumers to make more informed decisions when purchasing broadband or mobile broadband services.