difference of opinion

almostthere_3

My first post - patience
I have a HSBC credit card & current account, opened 14 months ago. My initial limit was £3500 and an O/D of £1000. Subsequent raises in in limit to £5000 & £1500 respectiveley. I always pay £400-500 per month on credit card dependand on usage and my o/d is nerver fully utilised but theres always a balance on my card, not a problem. I also have ccjs on my file, from 4 years ago, since then everything (mortgage,phone,car loan etc) has been paid on time and no 'red' circles on my experian credit file. I have recently applied for a new credit card and rejected. I also have capital one with a £200 limit which again is paid by standing order on the due date. Question: Why was I given the HSBC card/account but cannot get another mainstrem card, (for balance transfer of about £2000 from HSBC), but recently asked for a card increase of £1000 on HSBC card and got it no problem!
Thanks.

grumbler

See Credit Rating link in the blue box above.

...every institution individually plugs in the facts about you, as it believes them, to clinically work out whether to lend to you or not

- this is the answer to your question. Also, the higher level of available credit you have, the more difficult is obtaining further credit.

---lee---

Hi Almost and welcome.

There are many factors that are used to deterime eligibility for a CC. All companies use different criteria.

As you said, you have an old CCJ on your credit file. That will be enough to put many lenders off.

You already have an existing and lengthly relationship with HSBC. As you hold both a current a/c and CC a/c with them, they have been given a detailed insight into how you handle your money and can therefore make decisions with confidence. When you approach a new lender, they only have limited information from the credit reference agencies and the information that you supply on the application.

Also, it's a good idea to space applications between loans and credit cards. If you apply for a few at once, it looks like your desperate to borrow money and can scare lenders off. Give it a few months before applying for any others.

You can appeal against the decision to refuse the CC. That's probably best done in writing. This will give you an opertunity to explain the reasons why you should be given the card and you can give them evidence of how you have maintained your accounts. It's always worth a shot.

Cheers,

Lee.

almostthere_3

Thanks for replies. I still can't understand why HSBC gave me the card/current account in the first place,the ccjs's were there last year when I applied for the accounts, not that I'm arguing! Just seems odd that I can't get anything else 15 months later when I've got an extra 15 months good credit under my belt through HSBC.
Thanks.

---lee---

almostthere wrote:

Thanks for replies. I still can't understand why HSBC gave me the card/current account in the first place,the ccjs's were there last year when I applied for the accounts, not that I'm arguing! Just seems odd that I can't get anything else 15 months later when I've got an extra 15 months good credit under my belt through HSBC.
Thanks.

Don't look a gift horse in the mouth

It sounds like your doing the right thing anyway. As long as you pay ontime every month and keep the debt under control, your credit file will improve month on month and look more attractive to other lenders.

Cheers,

Lee.