This was the part which was my understanding, I.e that upgrading before the end of the scheme didn’t do a new hard check as it wasn’t a completely new application, but a renewal of an existing application.
Worth adding mine was a new application (though I’ve had them in the past but with a non Monzo account, I paid it off earlier in the year).
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It doesn’t work like that. My understanding (from reading the T&Cs and speaking to an Apple employee) is as follows:
You enter the first loan which is a 20-month loan and you are able to end it early after 11 payments providing you return the original device, this then settles that loan. When you ‘upgrade’ after the 11 payments a brand new loan is taken out, it’s not a continuation therefore a new credit check is required every time you go to upgrade each year.
A lot can change in a year and technically it’s a completely new loan value and term so a new credit check would be required. You’re essentially paying off the loan with your ‘old’ phone instead of cash then getting out a new one.
Hey, BPF employee here 
The current account you use doesn’t factor into the decision, that’s only so as we know where to take your monthly installment from.
The previous issue, which has now been fixed, was that our method of validating those details didn’t recognise the Monzo sort code (as well as some other new ones) on some of our application methods. The difference here was that the applicant couldn’t even get to the end of the application because the screen validation failed.
We actually check both Experian and Transunion as part of our credit assessment too, so there must have been some other reason why this application was unfortunately declined.
Hope that helps!
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My application failed yesterday and my credit file with all providers is great. I thought exactly the same thing, that it was because on Monzo. I don’t understand why it was not accepted if this is the case.
I’ve been refused as well, my Experian credit score is one point off perfect, never had any financial issues in the past and now I can’t get a new iPhone through the Apple site. It has been refused, I don’t understand why.
Did you phone them up and ask?