Do lenders have instant refusal criteria?

Redqueen

Hello all! This is my first post on the forum, though I have been receiving the email and using the site for years!

I tried earlier this week to apply for the Tesco credit card, as my first ever credit card 0% deal runs out soon, and I got declined. I was surprised at this so I checked my report and I came out with a good score.

I know times are tight, and I'm only 24 and am not on the greatest salary in the world, but I've never missed any payments, never been in trouble with any banks, and the only other debt I have is my student loan (which I don't earn enough to pay back yet).

My guess at the main reason for declining me is that I only just moved out of my parents house in August, so I was wondering if some companies may instantly decline credit if you moved recently, or if it is just that they don't like that I already have the 1 credit card.

Also I was wondering how much being declined for this card will affect me if I try to apply for another, as I intended to be a credit card tart from the beginning, so will be needing a new one soon!

Would be interested to hear your thoughts!

Thanks!

NickX

Redqueen wrote: »

My guess at the main reason for declining me is that I only just moved out of my parents house in August, so I was wondering if some companies may instantly decline credit if you moved recently

Many Providers routinely reject applicants if they are not on the Electoral Role.

I would make sure you are on the Electoral Role before applying for anymore credit. This is crucial to getting a decent line of credit.

Your Credit File will only show a search and not the fact that Tesco rejected you. This shouldn't be much of a problem for future applications but Electoral Role registration would be.

Good Luck.

Redqueen

Our electoral roll registration paper came through the week after we moved in (timed it well haha!) and they actually sent it back to me once as I forgot to sign the bottom after making changes, oops! But I had to return it by hand after that so I'm almost certain I'm on the electoral roll. Guess Tesco just wanted to pick on me then! I'll try another company sometime next week!

never-in-doubt

You need to see your credit report to determine if indeed you are on the electoral register. Bear in mind from August to December they do not do the rolling register...... (similar dates may not be 100% accurate.)

You can, by all means request a letter from your LA and send this to the CRA's who will update their records.

Edit:

Blind spot is August to October not December as originally posted above...

NickX

never-in-doubt wrote: »

Bear in mind from August to December they do not do the rolling register...... (similar dates may not be 100% accurate.)

Moggles is the person who is really up to speed on this

never-in-doubt

Agreed Nick - OP, have a read here: http://forums.moneysavingexpert.com/showthread.html?t=2037153

or here: http://forums.moneysavingexpert.com/showpost.html?p=26314841&postcount=802

Both will give you the full criteria etc you desire.

Originally Posted by Moggles
The period before new entries/amendments are added to the electoral roll varies during the calendar year. It's possible to enrol each month from early December until mid-August, using the rolling register procedure Unfortunately for you, there's a blind spot from mid-August till mid-October. This is because borough-wide audits are undertaken annually in August. So, additions made now will not appear on the ER until 1 December 2009.

On 1 December, you may want to contact the electoral services department of your local council to ask when the credit reference agencies are next updated, as frequency varies a few days between boroughs. Then check your electoral status is correctly recorded on credit files at your current address before you apply for a new credit card.

Redqueen

Thanks for that guys! Will be a bit annoying if I have to wait til Dec 1st, but I guess thats just the way it works! Do you think it would be worth trying for a credit card from the same place I have my current account in the meantime, I've had my current account there for just over 6 years so are they likely to be more lenient or not?

RJP33

To answer the thread question, yes they have instant rejection criteria as part of the dynamic risk analysis process where the risk will not be something the lender is prepared to accept. Usually includes data taken from your credit file.

This is usually things like not being on the electoral role, CCJs, defaults etc.

never-in-doubt

Redqueen wrote: »

Thanks for that guys! Will be a bit annoying if I have to wait til Dec 1st, but I guess thats just the way it works! Do you think it would be worth trying for a credit card from the same place I have my current account in the meantime, I've had my current account there for just over 6 years so are they likely to be more lenient or not?

Its not worth it as N Hunter will pick up the false address and force a fraud reject to the lender. Now you've already applied at new address only apply at that same one unless you genuinely move!

never-in-doubt

RJP33 wrote: »

To answer the thread question, yes they have instant rejection criteria as part of the dynamic risk analysis process where the risk will not be something the lender is prepared to accept. Usually includes data taken from your credit file.

This is usually things like not being on the electoral role, CCJs, defaults etc.

This is known as the lenders credit score (or criteria).......

RJP33

Yes, same with insurers as well. There's somethings where it will be an automatic no because it's company policy not to take the risk.

Obviously different companies will assess different risks and come to different policies, so it's always wrth looking around.