Sainsbury's refused me credit?! Why?

missk_ensington

Hi I recently applied online to Sainsbury's for a credits card (the long interest free period on purchases attracted me) however it was refused. I have never missed a CC payment, I have a mortgage, 2 CC's an an overdraft (not even into my Over Draft) Only have £400 and £200 on my 2 credit cards and have had them for 2 years, as I said never having missed a payment (sometimes I clear the full balance, or usually most of it).

Why then have they refused me credit??? My ex-partner who lived with me July 05-May 06 was £90,000 in debt and I believe declaring bankruptcy, has this had a detrimental affect on my credit rating? Thing is I obtained the mortgage whilst he was living with me, surely if this was the reason and they had associated me with his debt they wouldn't give me a mortgage (more so on a self-cert)???

I've paid for a my credit file from Equifax but it'll be up to 7 days and this is driving me mad! Want to cancel my Halifax CC which is 18.95% and get a 0% one for at least 6 months.

Also, will I be digging myself a hole if I now apply fpor a different one?

Wickedkitten

Well they used his income as the basis for the mortgage did they not? That may have linked your credit files.

jay78

Wickedkitten wrote:

Well they used his income as the basis for the mortgage did they not? That may have linked your credit files.

If you used his income to get a mortgage or had a joint bank account for example, this would create a link. Have you checked your experian credit file?
Only sainsbury's can tell you why they refused your application, have you tried asking them? They should be able to tell you the main reason for declining you as it's in their codes of practise. Also, if your application was refused because of credit scoring, you have the right under the Data Protection Act 1998 to have your application reconsidered by a person.

missk_ensington

No my mortgage is absolutely nothing to do with him, it was s ginel application. They didn't even know he existed

missk_ensington

My ex wasn't on any bills/account nothing just Council Tax and Tax credits because I had no choice without committing fraud. However, he had passed his 'new adderss' on to his creditors and so is this address not now on his file as having a huge wad of debt attached to it??

They only accept correspondence by letter at Sainsbury's so I'll do that, I'm wondering if I could have missed a zero off my earnings or something!!?

Wickedkitten

missk_ensington wrote:

No my mortgage is absolutely nothing to do with him, it was s ginel application. They didn't even know he existed

They would have had to know he exists if you used his income to get the mortgage. They do tend to ask for the details of the person giving the additional income.

missk_ensington

I didn't give his income, I applied as a single person getting a mortgage by myself. There was no way I was getting him involved in my mortgage knowing that he was a financial liability, didn;t wanna run the risk of him trying to take half when I'd stumped up £10k deposit. He had nothing to offer so never even mentioned his name, good job too as we've now split up! I can't understand why they would offer me a mortgage (I was offered by 2-3 places, and refused by none, I ultimately went with the best deal) but then 6 weeks later refused a measly credit card!?

MikeLB

Debts in households are usually linked to each other if the surnames match, regardless of joint applications or not IIRC. So for example. if I live in the same house as my father, he defaults, that could in theory affect my ratings. When you get your credit file, it will usualy show all people living at the address with the same surname.

The only reason I am reasonably confident about this. I was refused a loan by HBOS many years ago. It turned out I was refused because of 3 fradulent credit defaults which were from a person who moved into an old property I lived in, used my surname and made up a person. The default was tacked onto my address therefore affecting me and followed me to 3 new addresses before I found out about it. Yet in the mean time, I had managed to get my mortgage application through and a couple of car loans. So it really depends what criteria they used.

Until you get your credit file, there isnt much you can do really.

Sainsburys, are they not HBOS products essentially?

missk_ensington

Could this still occur though if we don't have the same name? What's stopping someone using your address, but to stop you receiving their mail and sussing it out, they divert it via the post office? My ex partner diverted his mail (no idea how, something to do with the post office) from his ex-wife's house because she wasn't giving it to him. He could still be saying he lives at my house, but diverting his mail to ensure he doesn't have to pass on his new address, and thus evade his debt for a bit longer?!?

MikeLB

If you dont have the same surname, I am not too sure to be honest. But if you have ever had anything joint in the past 6 years, then they can link you by that.

It could be something straight forward. Maybe because you clear your bills off regulalry, they dont think you will be a profitable customer so have refused on that grounds, which they are entitiled to do. It might even be something very obscure in your credit file, maybe a lot of credit searches for when online quotes for insurance etc. What companies provide you with your current 2 cards? Are they related to HBOS / Sainsbury? If so, they might have a bigger customer picture of you to make their decision on.

As its a long 0% offer on purhcases, they might only be looking for people who dont pay off in full or close to it each month, as they want to make some money out of it at some point!

Until you get the credit file, best not get too worried about it. You could always phone Sainsbury Bank meantime and ask if they can give a reason or at least point you in the right direction as to their refusal, but I dont think they are obliged to tell you a specific reason. You can appeal the decision as well IIRC if it means that much to have this specific product.

missk_ensington

I didn't know that insurance was linked to your credit file!? I'm going to call them later. What if its completely innocent, I typo'd some details on the application form or something, can I request it is removed from my credit file? I've just bought my house and its derelict (it was meant to be my ex's job doing it up) it needs kitchen, flooring, bthroo, boiler +cosmetics and I only have about £5-6,000 in my bank account. I was hoping to get a 12 month interest free card and use that, then repay it when I sell the house, but worried about applying for another now!