Cancelled Xbox Pre-Orders Negatively Impact Customer Credit Scores

Update:

Klarna have been in touch and provided the following statement, you can read the original article below.

"Very pleased to confirm that customers who refreshed the checkout page multiple times did not have multiple checks on their credit scores, so there are no customers who will have more than one hard check on their account as a result of applying for Klarna Financing for the product - meaning that no customers will be negatively impacted."

For more information Klarna has published here and has also shared guidance here on what customers in different scenarios should do.

Original:

It's been just over a week since the Xbox Series X/S pre-orders went live worldwide and for the most part many folks were able to get in their orders without any major issues, despite the huge demand for it. However, folks in the UK who were eyeing up doing the All Access finance option were having a bit of a nightmare when trying to get their orders in.

Xbox All Access is an alternative way to buy the next-gen consoles, as it gives buyers the option to pay the console off in monthly installments over the course of two years. On top of that, All Access includes Xbox Game Pass Ultimate. When you do the math you actually end saving money with this cheeky scheme. So, it's no surprise that many were keen to purchase the next-gen consoles through the All Access programme.

The Xbox Series X, the dullest-looking games console ever revealed

In the UK the only retail stores offering the All Access option were GAME and Smyths Toys with Klarna acting as the Xbox financing option. Unfortunately, due to such high demand, the websites for both GAME and Smyths Toys ended up going down for hours and hours. This left many shoppers frustrated and worried that they might miss out on pre-ordering the next-gen console.

Eventually when the sites were functioning, buyers were able to finally proceed with their orders until it came to the checkout phase. Here, they were hit with messages saying they couldn't complete their orders after having applied for financing. Unfortunately the problems didn't stop there. Buyers quickly discovered that after refreshing the checkout page multiple times this actually led to their credit scores being negatively impacted.

Xbox Game Pass

The reason why Klarna caused credit reports to get negatively impacted is annoying to say the least. Every time the checkout page was refreshed it would force another credit check on the buyer's account. Multiple hard checks in a short time leads to lenders interpreting that as a sign that the buyer might be in financial stress.

This huge debacle kicked up quite a fuss on Twitter after many took to the platform to voice their frustrations and concerns. Eventually, Microsoft clocked on to the issue and has since stated that it is attempting to work with Klarna, GAME, and Smyth Toys to try and rectify the situation. It's unclear as of yet whether it is possible for Microsoft to undo these negative impacts on credit scores. This could mean that buyers might not be able to use the All Access option when attempting to pre-order the console at a later date.

Xbox Series X/S is set to make its worldwide debut on 10th November 2020. Hopefully by this point credit scores will be sorted and folks will be at home enjoying the next-gen consoles with Xbox Game Pass.

Topics: Xbox, Xbox Series X, Xbox Series S