Abbey declined my CC application

Sam__3

Hi everyone, I'm new to these forums...

Here's the story: I've had a bank account with Abbey since the end of July and ever since have had roughly £1500 of salary paid into the account at the end of every month. For this reason I thought I'd have no problem applying for a credit card from Abbey, so I filled out the application online and sent it off. At the end of last week I received a letter explaining that my application had been unsuccessful. They gave me a postal address which they invited me to write to if I had any further information supporting my claim. I plan to write to this address and set out clearly why I believe I should be entitled to a credit card.

I was just wondering if anyone here has had any experience of appealing against a declined credit card application, and if so, whether you have had any luck or whether they provide this address purely as a means of fulfilling some legal obligation. Any advice on how to word my letter and what sort of information to provide them would also be really useful.

I'm also aware that this application will be on my permanent credit history, which may affect any future applications for credit. Is there any way of having this removed?

If anyone can give me any help or advice I'll be really grateful

TrickyDicky

The application on its own wont affect your credit history - but applying for multiple credit things in a short space of time does tend to look fishy. 3-4 applications every few months will be fine and not make a difference. You cannot have these applications removed unless they were done in error (which this one wasnt).

As for you being declines - do you have any other form of credit or debt? mortgage? loans? mobile phone contract? They can decline you for any number of reasons including:

1. too much existing debt
2. you're not on the electoral roll
3. not enough credit history with existing products
4. too much available debt (big overdrafts + credit card limits)
5. you havent been an abby customer long enough
6. they dont think they can flog you anything else

You are not entitled to a card - they have the final say. They are unlikely to tell you the reason why you were declined either - all of their reasoning and credit assessments are trade secrets.

Sam__3

Thanks for taking the time to reply, it's really appreciated.

TrickyDicky wrote: »

As for you being declines - do you have any other form of credit or debt? mortgage? loans? mobile phone contract?

I have a phone contract but no mortgage or other loans. I've had my phone contract for about a year now (out of 18 months total). Would this show up on my credit file in my favour, or would they only ever put something there if I've been unreliable at paying my bill (which I haven't)?

I do have another bank account with HSBC which is overdrawn but I'm working on paying this back and as yet haven't missed a scheduled payment. HSBC have told me that my credit file will only be affected if I miss a payment or let the account go over the agreed overdraft limit so I think I'm ok in that respect.

2. you're not on the electoral roll

I never even considered this, and I feel a bit stupid now! I've only been at this house since August and am not on the electoral register. This is something I'll sort immediately, and perhaps something I should mention in my letter.

You are not entitled to a card - they have the final say. They are unlikely to tell you the reason why you were declined either - all of their reasoning and credit assessments are trade secrets.

Yeah, maybe "entitled" wasn't the right choice of words on my part

Thanks for the info!

simon_templar_2

Successful appeals when declined are few and far between somewhere between slim and not a sniff.

jakesuk

Sam_ wrote: »

Hi everyone, I'm new to these forums...

I've had a bank account with Abbey since the end of July and ever since have had roughly £1500 of salary paid into the account at the end of every month. For this reason I thought I'd have no problem applying for a credit card from Abbey, so I filled out the application online and sent it off.

Lenders have many different ways of assessing applications. Being on the Electoral roll should be your first port of call. You have had the account with them for a short time so this may not have worked hugely in your favour.

The mobile phone contract will appear on your credit report and this will help build your credit history, provided you have a good payment history.

The search on your history will disappear after 12months. As the other poster said, too many searches in a short time doesn't look to potential lenders.

You should well consider appealing the decision and I disagree with the other poster who said your chances are slim to none. If you have a regular income and well managed account history with your bank(s) then amongst other things you may well have a reasonable chance. Be sure to include copies of bank statements, payslips and identification.

Innocent_Guy

Hi There,

I have credited my abbey accounts with between £1500 - £2000 a month, have a 2.5koverdraft and they still refused me this card. I appealed and this was declined again!

Moggles_2

Sam_ wrote: »

I've had a bank account with Abbey since the end of July and ever since have had roughly £1500 of salary paid into the account at the end of every month. For this reason, I thought I'd have no problem applying for a credit card from Abbey, so I filled out the application online and sent it off.

Originally Posted by Innocent_Guy
I have credited my Abbey accounts with between £1500 - £2000 a month, have a 2.5k overdraft and they still refused me this card.

It comes as a surprise to lots of us, but the credit card arm of Santander/Abbey will have limited info about your bank accounts due data protection regulations. The balance of your Santander current account and the manner in which it's funded, plays no part in the decision to accept or decline your application for a credit card. That said, if you go overdrawn at Santander, HSBC or any other bank, it will know about that.

To understand this, have a look at your credit files. (Experian produces excellent guidance notes as well.) For help, see page 1 of the *How to obtain credit reports* sticky. Once you know what lenders will see, you are in a better position to improve their opinion

Moggles_2

Sam_ wrote: »

I do have another bank account with HSBC which is overdrawn but I'm working on paying this back and as yet haven't missed a scheduled payment. HSBC have told me that my credit file will only be affected if I miss a payment or let the account go over the agreed overdraft limit so I think I'm ok in that respect.

Again, I would check your credit files. You need to know how this is being recorded.

An overdraft is repayable on demand. In other words, you have to pay back any amounts you owe immediately, when your bank asks you to.

If you've had to agree to a repayment plan to reduce the overdraft more gradually, then realistically you must be prepared for that to affect your credit rating.

Moggles_2

I've only been at this house since August and am not on the electoral register.

The move will have disrupted your credit rating temporarily.

Basically, lenders like stability. Being with the same employer, bank and current address for a while, all help when applying for credit, but only data that can be independently corroborated is used for credit scoring purposes. That's why it pays to get on the electoral roll as soon as possible after you move to a new address. It's free after all and everyone's credit rating improves no end once registered. As others have said, I'd make this your number one priority.

Please note: your name cannot be added to the ER retrospectively. If you enrol between now and mid-November, public records will show that you've lived at your current address since at least 1 December 2009. If you decide to appeal to Santander, you'll need to send proof of ID and proof of residency.

iereboy

Just to let you know, Tesco refused me last year Sept for a Credit Card.

I appealed.

I sent a copy of my credit report, my savings statements, my last 3 months pay slip and the p something form which shows how much i earnt in a year. I actually highlighted parts of my credit report and wrote a letter referencing certain sections of the credit report.

They then gave me the card. It was quite a straight forward process appeals process. Cost of a stamp!

They never did tell me what I got refused on. (Its trade secrets)

On the anniversary of the card I called them up and they raised the limit by a further £750!

I pay it off in full and get the points.

So appeals do work!

(It was one of the two letters i have written in the last year)

jani99

I was refused as well, but when I print off my credit check from Credit Company and I appeal than they accept it.

Make sure you write them reason, why you think application must be accepted, provide them some helpful document, do not sent it by post go any branch and ask them to stamp copy of your documents so they see the original.
Never sent the original documents

YOU MAY ALSO ASK THE BRACH TO POST IT FOR YOU, AS THEY DID MY

Good luck