Denied by Tesco - Why oh why?

MikeJ79

First post on here, first I'd like to say this site is great, so glad I found it.

Searched through the forums, found lots of solid information to get me started in my Tesco issue - now i'm stuck.


My question:


I applied for a new Tesco card on Monday and I got denied. I tried calling them and not surprisingly they said they cannot tell me anything at all, and that they use an outside source - called experian - to check my credit and thats all they knew, the lady on the phone continuously said it was not up to them and that I would have to check with "Experian".

Signed up for Experian, (found lots of info on here, thanks), got my credit score and it was quite good.


Called up Tesco again, told them I went to Experian and I still have no idea why I got denied and I would like to know why... the incredibly "helpful" person on the phone maintained that they are not at liberty to tell me why and that if I wanted to I could file an appeal by post. (what do they get paid for anyway?).

I dont want to file an appeal, I think I have a right as a consumer to know why this service is not available to me. I fully understand that the final decision can be 100% arbitrary, however I should have a right to atleast know *why* I got denied.


Other details:
- am on the voters roll

- only 1 other credit card, never paid late, though have used cash advance a couple time.

- Decent salary (>35k)

- lived in the UK for 4 years - only 2 addresses.

- Have had a couple direct debits for 4 years, vodafone / o2, never paid late.


To top it all off, I searched this forum and found out that you could get denied if you have too many "credit searches" in your file, checked this as well and I have 0 footprints (other than my own searches).


Wait a sec, doesnt this mean that Tesco didnt even USE EXPERIAN in order to deny me?

Am quite frustrated want to call back the very helpful people at Tesco Finance and shout at them for a good hour until I calm down.

Thanks for any help,
Michael.

hixey101

there must be a mistake, the accepted me and I was a student up until June! Only just got a job and nver had a credit card before. Not got it anyway cos of the postal strike

ElkyElky

hixey101 wrote: »

there must be a mistake, the accepted me and I was a student up until June! Only just got a job and nver had a credit card before. Not got it anyway cos of the postal strike

Did you have the job when you actually applied?

I'm a jobless student, tempted to apply for Tesco but worried they'll decline because I don't have a job.

jakesuk

From my experience it is not just Tesco that would refuse to give you any information as to why you have been declined. There are many reasons why they might have declined you, it could be something as simple as a problem clarifying your identity due to a slight spelling error or something more general.

Tesco will send you a decline letter, usually within 7 days but who knows how long it will be with the Royal Mail.

I would wait for the letter, and then send an appeal response enclosing the decline letter and be sure to include your application reference number (which will be quoted on their decline letter). Also enclose recent bank statements, payslips, and some means of identification and a general letter explaining your current financial situation.

There are some good posts around the board suggesting what to include in appeals and a lot of people find the appeal is successful - (such as me with Tescos recently).

izools

I would reccomend applying for a MBNA Classic Mastercard.

It's a nice looking card, you get a 17.9% APR and 1.9% Balance Transfer rate for nine months, you also have the option of taking a 1.9% APR Cash Transfer to your bank account for nine months.

This card is relatively lightly credit scored, you get some good offers as part of the deal, and the best thing, which I really like, is if your application is referred, you can call them up, provide the reference number given to you by the online application system, and you get to speak right with an underwriter, who makes the final call.

If it's a no, he'll explain in detail why. If there are any questions they need to know because they are doubtful, they'll ask when you call up and assuming you are in a good position, they'll say yes.

I'd say it's well worth a punt, 1) they search Experian so you know the data they get will be what you've seen, 2) they won't see the search from Tesco because that will have been on Equifax, and 3) even if they say NO, you'll get some insight as to why.

Good luck, and keep us posted

EDIT: Tesco probably declined you because of your limited credit history. They may not like the fact that you have only had experience with just one credit card, and would like to see more to be able to cast a better judgment. This may be another reason to consider the MBNA Classic card, as this card is designed for people that may have only held one or two cards for only a few years, but still have a flawless history with that one card.

EDIT: MBNA Classic Mastercard (No, I don't work for them, I've just had good experience with this card as have others that I've suggested try this one)

MikeJ79

Thanks - will keep MBNA in mind, though I did want the Tesco points... hehe.

Have done a lot of comparisons of rewards based cards on here and Tesco actually won it for me, biggest factor is that its NOT an amex, and has the best non-amex Air Miles bang for your buck.


Does anyone know if I can try re-applying online, or how long until history of my old application "disappears" ?

I really want to re-apply, I'm pretty confident that it could have been a simple type in my 1st application, but I really dont want to go through the pain of filing an appeal. Its 2009, I cant be bothered to write Paper Letters!

iereboy

Mike,

A few points:

1) Shouting at the person at the end of the phone will no way give you your card. They have no leeway nor will their manager.

2) You claim to want the card but you don't want to write the letter?

3) You will have more chance writing an appeal. Yes its 2009 and letters are still needed. Please include:

your last 3 payslips, 3 months current account statements any savings statements you have , a copy of your credit report highlighting the good points and a letter stating why you should have the card and your financial circumstances. Send via recorded delivery. A real person will review and can over ride the decision. No you can't speak to this person. You will have a lot more luck this way and no you are not guaranteed to have the card.

4) If you don't want to appeal. Dont apply for 6 months and get prepared to be most likely turned down again.

ACG

i used to work for tesco credit cards. They do use experian, or atleast did when i was there 2 years ago.
There are a number of reasons why you would be declined, usual ones are too many applications (you said none), the fact you have been in the UK for 4 years and lived at 2 addresses. How long have you been at your most recent address? Who else has lived or is living at that address? If people with bad credit have lived there then it may effect the system of which an appeal will get you around it.

thebaroness

ACG wrote: »

i used to work for tesco credit cards. They do use experian, or atleast did when i was there 2 years ago.
There are a number of reasons why you would be declined, usual ones are too many applications (you said none), the fact you have been in the UK for 4 years and lived at 2 addresses. How long have you been at your most recent address? Who else has lived or is living at that address? If people with bad credit have lived there then it may effect the system of which an appeal will get you around it.

Were you an underwriter for Tesco Credit card? Other's people's credit should not affect his application. Credit searches are done on people not properties. There may be 3rd party Cifas information at his addresses but, again, this should not be the reason for the decline.

ACG

No, but i did almost every other job. One of those was working on new accounts for a short while.

Your right, it shouldnt effect it, but i remember speaking to a person who bought a house which was previously owned by someone who let about 10 illegal immigrants stay there who all applied for credit cards/loans etc. The person i spoke to was high up in a company was on about £80k a year, had his mortgage, car and mobile phone and an overdraft (although he never used it).

We (Natwest not Tesco, but RBS/Natwest run tesco credit cards and have similar but not identical underwriting requirements) declined him, which he found quite funny. He sent in 3 months bank statements and proof of address and we opened up an account for him (with e decent c/limit0.

Moggles_2

ACG wrote: »

No, but i did almost every other job. One of those was working on new accounts for a short while. Your right, it shouldnt effect it, but i remember speaking to a person who bought a house which was previously owned by someone who let about 10 illegal immigrants stay there who all applied for credit cards/loans etc. The person i spoke to was high up in a company was on about £80k a year, had his mortgage, car and mobile phone and an overdraft (although he never used it). We (Natwest not Tesco, but RBS/Natwest run tesco credit cards and have similar but not identical underwriting requirements) declined him, which he found quite funny. He sent in 3 months bank statements and proof of address and we opened up an account for him (with e decent c/limit0.

Thanks for your feedback. I think you (or your colleagues at Tesco) have jumped to conclusions.

Credit ratings assess people, not dwellings. If you share a financial product (eg. mortgage) with someone else, then you are financially linked to them and their affairs could have an effect on your credit history, but simply occupying the same house as a previous occupier with a poor credit history, has no effect whatsoever.

Mike, as AGC has said, there are any number of reasons why a given lender may refuse to extend credit, but from what you've told us, the fact that you've only lived in the UK for four years and at two different addresses is likely to be a major factor.

Lenders like stability, so best practice is to apply for credit facilities, where possible, before you move/change jobs/change banks. Being with the same employer, bank and current address for a few years, all help when applying for market-leading cards like Tesco