Halifax - credit card declined

BavarianMonk wrote: »

I have a good credit rating (900) but have recently been declined for a Halifax credit card.

You will find that leaving old, unused accounts open, shows new creditors that you have "access" to a lot of credit. If you have three credit cards and two store accounts each with a £1,500 limit, that you haven't used for years, when you apply for new credit they will look at your report and see you have "access" to £7,500 worth of credit.

They then calculate whether you could afford to borrow any more, based on your income, if you maxed out these accounts. I would imagine the answer is no.

The best way to maximise your chances of obtaining credit are:

>Close any credit accounts that you don't need - don't just stop using them

>Ensure to leave a good third of your credit limit available on accounts you do need

>Don't miss payments, and pay more than the minimum

>Don't apply for credit more than twice in any six month period

>Make sure you are registered on the electoral role

>Wait until your newest account is atleast a year old before applying for more credit


Other things a creditor will ask for, which has an impact on credit scoring, are:

Residential Status
Time at address
Time with Employer
Relationship status


Remember, that credit scoring is never based on one piece of information alone.

Say for example you have two people, each have an Experian score of 900.

One has just bought a house, but has only lived there for three months, and bought this house for a new job, and has only had their job for three months.

The other is a private tennant, but has been living at their flat for eight years and has had their job for four years.

In most instances, the latter stands a better chance of being accepted and / or given a lower interest rate.

Other things can happen like this, for example:

Person A has an experian score of 700, person B has an experian score of 900

Person A is a homeowner, married with no children, has been living there for ten years and had their job for five years

Person B is a private tennant, divorced, just moved three months ago, and just got a new job.

Person A stands a better chance of being accepted / being offered a lower interest rate.

Complicated stuff, credit scoring! The information you "provide" on your application form can go a long way to improve your chances of being approved / given a good apr

"Massaging the Stats" is a phrase used a lot in the corporate world. I believe my "massaging the stats" on my Vanquis application form is why I was approved with a 39.9% APR just two months after bankruptcy discharge, when my other half was approved with a 59.9% APR with no history of bankruptcy, just the odd default.