When you`re looking to purchase an item on credit, you may come across the phrase “agreement subject to status” in the terms and conditions. But what exactly does this mean, and how does it impact your ability to obtain credit?
Firstly, it`s important to understand that lenders have certain criteria that must be met before they can approve a credit application. This may include factors such as your credit score, income, employment status, and other financial obligations. When a lender includes the phrase “agreement subject to status” in their terms and conditions, it means that they reserve the right to assess your application based on these criteria before making a final decision.
In practical terms, this means that even if you meet the basic requirements for credit – such as being over 18, a UK resident, and having a regular income – you may still be declined if the lender determines that you don`t meet their specific eligibility criteria. For example, you may be declined if you have a low credit score, a history of missed payments, or a high level of existing debt.
It`s also worth noting that different lenders may have different eligibility criteria, which can vary depending on the type of credit you`re applying for. For example, a lender that specialises in providing loans to those with poor credit may have more lenient eligibility criteria than a high street bank.
So, what should you do if you come across the phrase “agreement subject to status” when applying for credit? The first step is to carefully review the lender`s terms and conditions to understand their specific eligibility criteria. If you`re unsure whether you meet their requirements, it may be worth contacting the lender directly to ask for clarification.
It`s also important to remember that making multiple credit applications in a short period of time can have a negative impact on your credit score, so it`s worth taking the time to research different lenders and their eligibility criteria before submitting any applications.
In summary, “agreement subject to status” means that a lender reserves the right to assess your eligibility for credit based on specific criteria before approving your application. By understanding a lender`s eligibility requirements and taking the time to research different options, you can increase your chances of being approved for credit and avoid any negative impact on your credit score.