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  • FIRST POST
    • LolaPear
    • By LolaPear 7th Jan 18, 9:10 PM
    • 14Posts
    • 1Thanks
    LolaPear
    Santander Declined due to Paying Off Debt?!
    • #1
    • 7th Jan 18, 9:10 PM
    Santander Declined due to Paying Off Debt?! 7th Jan 18 at 9:10 PM
    I applied for a Santander credit card. I have been banking with them for 20 years. I did have three credit cards maxed out... paid them all off in full last month - so I am now debt free.

    The bank phoned me up. They did an affordability assessment and credit check over the phone. I was then declined. I asked for the reason. They could not go into much detail but explained that my affordability checks failed.

    Pushing for more answers, they told me that because my credit card accounts with other providers had a consistent history of high credit utilization for months and then all of a sudden they all dropped to 0, it has had a negative affect on my credit scoring outcome - with them, not the credit agencies.

    Apparently even if you clear all your cards off, the fact you've got previous months of being maxed out / high utilization on your file can still affect you, the lady said.

    I was quite angry. I worked overtime over Xmas to pay all my cards off and then the bank says I pretty much should've left them as is or cleared them over a longer period. No 0% card for me!

    How long will this stick to me? Surely I am a good debtor for paying everything in full as it shows I pay back?
Page 1
    • zx81
    • By zx81 7th Jan 18, 9:23 PM
    • 14,806 Posts
    • 15,642 Thanks
    zx81
    • #2
    • 7th Jan 18, 9:23 PM
    • #2
    • 7th Jan 18, 9:23 PM
    They may want to see that you're not going to plunge back into debt. They're not saying you shouldn't have paid the cards off - that's just your misinterpretation.

    Other lenders will have different criteria.
    • LolaPear
    • By LolaPear 7th Jan 18, 9:27 PM
    • 14 Posts
    • 1 Thanks
    LolaPear
    • #3
    • 7th Jan 18, 9:27 PM
    • #3
    • 7th Jan 18, 9:27 PM
    They may want to see that you're not going to plunge back into debt. They're not saying you shouldn't have paid the cards off - that's just your misinterpretation.

    Other lenders will have different criteria.
    Originally posted by zx81
    The lady pretty much said I should have paid it off gradually as it looks bad if it goes from e.g 450 on one card, 250 on another owing and then to a straight 0 across all my accounts within a month.

    If i keep my cards at 0 for, say 3 months, would this help my chances to show im not plunging back into debt?
    • zx81
    • By zx81 7th Jan 18, 9:30 PM
    • 14,806 Posts
    • 15,642 Thanks
    zx81
    • #4
    • 7th Jan 18, 9:30 PM
    • #4
    • 7th Jan 18, 9:30 PM
    The lady was pretty much wrong.

    Time without debt will improve how lenders view you.
    • LolaPear
    • By LolaPear 7th Jan 18, 9:32 PM
    • 14 Posts
    • 1 Thanks
    LolaPear
    • #5
    • 7th Jan 18, 9:32 PM
    • #5
    • 7th Jan 18, 9:32 PM
    The lady was pretty much wrong.

    Time without debt will improve how lenders view you.
    Originally posted by zx81
    thank you.. will wait 3 months and take my business elsewhere.
    • BoGoF
    • By BoGoF 7th Jan 18, 9:32 PM
    • 2,835 Posts
    • 2,074 Thanks
    BoGoF
    • #6
    • 7th Jan 18, 9:32 PM
    • #6
    • 7th Jan 18, 9:32 PM
    Having 3 maxed out credit cards is never a good sign. Why are you so desparate for a new card having cleared your debt?
    • LolaPear
    • By LolaPear 7th Jan 18, 9:37 PM
    • 14 Posts
    • 1 Thanks
    LolaPear
    • #7
    • 7th Jan 18, 9:37 PM
    • #7
    • 7th Jan 18, 9:37 PM
    Having 3 maxed out credit cards is never a good sign. Why are you so desparate for a new card having cleared your debt?
    Originally posted by BoGoF
    not desperate... i can live 3 months without one... many people reliant on credit couldn't go 3 days without a fix... i saw a good deal from Santander for 0% so i wanted to grab one for any unexpected expenses.
    • BoGoF
    • By BoGoF 7th Jan 18, 9:40 PM
    • 2,835 Posts
    • 2,074 Thanks
    BoGoF
    • #8
    • 7th Jan 18, 9:40 PM
    • #8
    • 7th Jan 18, 9:40 PM
    When it comes to applying again use the MSE eligibility tool as a guide as to who is likely to accept you.
    • LolaPear
    • By LolaPear 7th Jan 18, 9:43 PM
    • 14 Posts
    • 1 Thanks
    LolaPear
    • #9
    • 7th Jan 18, 9:43 PM
    • #9
    • 7th Jan 18, 9:43 PM
    When it comes to applying again use the MSE eligibility tool as a guide as to who is likely to accept you.
    Originally posted by BoGoF
    I did and it told me before I applied + they called for the credit check that I had a 95% chance of acceptance

    My luck fell in the 5% chance of refusal.
    • SnowTiger
    • By SnowTiger 7th Jan 18, 9:48 PM
    • 3,134 Posts
    • 2,113 Thanks
    SnowTiger
    The bank phoned me up. They did an affordability assessment and credit check over the phone. I was then declined. I asked for the reason. They could not go into much detail but explained that my affordability checks failed.

    Pushing for more answers, they told me that because my credit card accounts with other providers had a consistent history of high credit utilization for months and then all of a sudden they all dropped to 0, it has had a negative affect on my credit scoring outcome - with them, not the credit agencies.

    Apparently even if you clear all your cards off, the fact you've got previous months of being maxed out / high utilization on your file can still affect you, the lady said.
    Originally posted by LolaPear
    The computer said no. The lady you spoke to was guessing why it said that because you were being pushy and becoming angry.

    When you apply for credit your credit history is taken in to consideration. Lenders don't base their decisions on a snapshot of how your accounts stand now.

    If they did, almost everyone would be able to fudge things to make themselves look good.
    • LolaPear
    • By LolaPear 7th Jan 18, 9:52 PM
    • 14 Posts
    • 1 Thanks
    LolaPear
    The computer said no. The lady you spoke to was guessing why it said that because you were being pushy and becoming angry.

    When you apply for credit your credit history is taken in to consideration. Lenders don't base their decisions on a snapshot of how your accounts stand now.

    If they did, almost everyone would be able to fudge things to make themselves look good.
    Originally posted by SnowTiger
    So someone like me who had three cards maxed out for 4 months and now paid in full to 0 will look like a risky borrower to lenders?
    • A4445
    • By A4445 8th Jan 18, 10:15 AM
    • 672 Posts
    • 302 Thanks
    A4445
    Perhaps as you've paid everything off the Santander system didn't think they would make any money from you so declined your application.
    • chattychappy
    • By chattychappy 8th Jan 18, 10:53 AM
    • 6,529 Posts
    • 3,455 Thanks
    chattychappy
    The computer said no. The lady you spoke to was guessing why it said that because you were being pushy and becoming angry.
    Originally posted by SnowTiger
    Yep.

    There is a proud history on this forum of people getting upset, operators giving out inaccurate information or guessing, receipt of ex-gratia payments being interpreted as "they admitted they were wrong".

    Bear in mind whilst searches are reported instantly, there can be a delay before reduced balances are reported. Perhaps the lady was wrong and you were still showing as maxxed out. If you worked "over xmas" to get the money which you used to pay down the cards, we are only at 8 Jan now. These things are reported monthly.

    Just try the eligibility checker as already suggested. Plenty of providers around.
    • bengal-stripe
    • By bengal-stripe 8th Jan 18, 11:20 AM
    • 3,164 Posts
    • 2,039 Thanks
    bengal-stripe
    I did have three credit cards maxed out... paid them all off in full last month - so I am now debt free.
    Originally posted by LolaPear
    ......it looks bad if it goes from e.g 450 on one card, 250 on another owing and then to a straight 0 across all my accounts within a month.
    Originally posted by LolaPear
    So you have three (sub-prime?) cards with very low limits (£450, £250 and ???) maxed out for a considerable time. Now you've paid them off and you are expecting an instant reward; not only an additional CC but a 0% deal on top of it. Looks to me a bit like a New Year's resolution: alright, you have lost two stone, but can you keep them off?

    You say you have banked with Santander for twenty years; so they have a long-term view of your financial history. If you have a history of chaotic management, that one month of financial hunky-dory is not likely to change the bank's view of you instantly.

    You will have to prove that this is not a one-off!
    Last edited by bengal-stripe; 08-01-2018 at 12:21 PM.
    • LolaPear
    • By LolaPear 8th Jan 18, 9:44 PM
    • 14 Posts
    • 1 Thanks
    LolaPear
    I spoke to a business called Equifax who the bank recommended I checked with. The agent on the phone said I had a financial association with a name matching my husband's sister. This makes sense as we both entered an agreement for a loan about 4 years ago.

    Lady told me that she's not allowed to discuss her details, but said to speak with the associate about their credit file. Although this isn't a defined reason for Santander declining me, it isn't ruled out.
    • YorkshireBoy
    • By YorkshireBoy 8th Jan 18, 9:53 PM
    • 29,654 Posts
    • 17,614 Thanks
    YorkshireBoy
    The agent on the phone said I had a financial association with a name matching my husband's sister. This makes sense as we both entered an agreement for a loan about 4 years ago.
    Originally posted by LolaPear
    Has the loan now been paid off? Do you have any other joint credit agreements with her? If no to both then you need to financially disassociate yourself from her...with all 3 CRAs.
    Lady told me that she's not allowed to discuss her details, but said to speak with the associate about their credit file.
    Not sure why they'd say that! If you've no joint products now, then disassociate yourself. And if you do still have a joint product there's nothing you can do/improve by speaking with her!
    • Thrugelmir
    • By Thrugelmir 8th Jan 18, 10:46 PM
    • 56,659 Posts
    • 50,043 Thanks
    Thrugelmir
    No 0% card for me!
    Originally posted by LolaPear
    Lenders are actively tightening lending criteria and in the process accepting fewer applications for unsecured credit.
    “Opportunities come infrequently. When it rains gold, put out the bucket, not the thimble”
    ― Warren Buffett
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