HALIFAX/HBOS Card App Declined.

Darren08

Hello all.

This is my first post, please be gentle .

I am 23 and have had credit agreements since I was 19 so little over 4 years now. In this time I've had 3 store cards running for a number of years consecutively, at least 8 credit cards, 5 with HALIFAX AND BOS (I am a balance transferer ), a loan, 3 mobile contracts, home broadband and telephone with 3 companies and a catalogue account. I'm on the electoral role and have been since 18. I live at home with my parents, not something to be proud of I know but it's only until I go to University in September 2009. I am a manager and early little over £16,000 a year. I have banked with the Halifax for 6 years with a £1200 arranged overdraft that never exceeds £400 usage.

Around 18 months ago I applied for a Halifax credit card and was declined. I sent them a letter around 6 pages long detailing my good credit history and explaining that all credit files were crystal clear. I'd never had a single late payment, default and all accounts were clear and up to date. They replied saying it was there error, apologised and sent me a £6500 limit card (my previous with HBOS was £1500!!!). At the end of the 10 months interest free I transfered the mesely £300 balance to Barclaycard. It was one mistake after another with them and still is so when cashing a cheque at my local Halifax branch today I decided to apply for another Halifax One card.

In the last 6 months I canceled all old, unused store cards and at the time of applying (and within the last 6 months) have only had 1 credit card, 1 store card and 1 mobile phone running as credit agreements at once.

I had a lovely long chat with the rep in branch over a hot chocolate and was told ''Oh, that's a shock, it's declined''. The reason code was something like D4 which she looked up and explained meant ''it's nothing relating to the customers account or details and is a decision made solely based on HBOS lending procedures'' or something.

I'm gob smacked. In 4 years I've had a lot of credit but unlike most of my friends, I've always paid every monthly payment, never had a late payment, fee, charge, arrears or nasty call or letter. I've been with them 6 years, given them loads of credit card business, held my job for 7 years almost and checked my credit files prior to applying and got a clean bill of health.

Any ideas? Is it likely they made a mistake again? Could it be the credit crunch?

I've proved I can keep a job, manage my finances and hold lots of credit without losing control and missing payments and now at my lowest ever credit holding time I am declined by the bank I've been with for 6 years. At the minute, all I have is £250 on a credit card, a monthly phone bill of around £35-£50 and an overdraft of £1200 that I am currently using £200 of this month so far.

I'm in the process of typing my appeal.

What's really annoying is in over 4 years I've built up a lot of credit and a good rating and now they've put my 1st ever black mark (they removed the first one when they overturned the decline last time) on my file saying I've been refused credit when really I'm uber reliable.

Sorry for waffling guys, thanks in advance.

darcyvuqua

i have no idea why they refused you if your file is clear a search is a mark on your file whether accepted or decliened as credit companies who search you file and see a search they dont see whether it was a declien or if you were accepted!

ldn-100

Darren08 wrote: »

What's really annoying is in over 4 years I've built up a lot of credit and a good rating and now they've put my 1st ever black mark (they removed the first one when they overturned the decline last time) on my file saying I've been refused credit when really I'm uber reliable.

If you are declined for credit it is not recorded on your file as 'black mark'. All that shows is the fact a search has been done and this is only visible for 12 months.

Write to Halifax again. Whatever gremlin in the system that caused the problem last time could be at work again.

Darren08

Thanks for your speedy replies. Ah great, I'd hate all of my hard work to have gone to waste. I know it sounds really sad but even at age 18-19 I wanted to build myself a good credit rating for my future and have purposely taken credit, paid the minimum, kept them going for a period and paid them off to try and build myself a good reputation.

I'm on page 3 already of my lengthy argument against the decision. I wish I could just phone their Specialist Lending team but nobody could get me a number.

cifpower

I would make sure all your old account show as settled on your credit file.

Darren08

Yeah they are .

I took this sites advice and used a free trial period last month to have a look on there. Almost all of my credit was there and all old accounts were settled, closed or like the catalogue, unused. No late payments or anomalies .

I think it was with CCP Identity protection.

Darren08

Has anyone else had any similarly weird unjustified rejections?

ldn-100

Recently I have been finding the odd application gets declined without an obvious reason, but seemingly 'harder scored' products get through fine. We don't know the exact criteria lenders are using to judge applications and it could be that they have a particular type of customer in mind both in terms of potential risk and earnings. Furthermore, this specification may be changing over time and even from day to day as they attempt to control their customer profile. You definitely shouldn't take any decisions to heart, or consider it a slur against your good standing. Credit applications are more complex than just an assesment of credit worthiness. I would also imagine they are fail-safe (from the bank's point of view) so the system will tend towards decline/refer if, for example, a rogue piece of data gets in.

witches_cauldron

Darren08 wrote: »

I'm on page 3 already of my lengthy argument against the decision..

are you writing an entire novel? Remember that lenders aren't actually legally obligated to offer you credit, regardless of how great you think your credit history is. You are not actually entitled to a credit card.

Darren08

No, no, it finished at 3 pages . They may not be obliged but still it would be nice to know why 6 years loyalty and taking numerous services from them over the years has counted for nothing when they won't even give me a credit card.

Yeah I guess it's they type of customer I am, as I've never had any fees, interest, defaults and charges I guess I've made them no money. I'm not perpetually in debt to steal Martin's phrase, I pay everything off, monthly yes, but during the interest free then shift it. They may be being uber greedy .

NickX

Darren08 wrote: »

it would be nice to know why 6 years loyalty and taking numerous services from them over the years has counted for nothing

Loyality counts for nothing in the financial services marketplace.