Nil Limit?

cbenson87

Hi,

I recently got declined for a credit card from my bank so i rang them and they told me its because i have a 'nil limit' mark next to my account.

Has anybody ever heard of one of these?

Thanks

izools

cbenson87 wrote: »

Hi,

I recently got declined for a credit card from my bank so i rang them and they told me its because i have a 'nil limit' mark next to my account.

Has anybody ever heard of one of these?

Thanks

Yes, it's one or more of several reasons:

1. You've not been with the bank long enough for them to gauge affordability
2. You've proven that you can't afford credit repayments by running the account close to £0 / overdrawn on a regular basis
3. You've incurred charges recently
4. You've got adverse credit history elsewhere which the bank has picked up on via CAIS (Credit Account Information Sharing)
5. You've been pre-declined for credit due to some other breach of their credit policy e.g. already asked for credit x number of times in the last x months

I also have this with Lloyds TSB (they call it a CPD - Credit Policy Decline) although I've had no trouble passing credit checks with Sygma, Three, Barclaycard, BT, and various other companies over the last year.

I'm told that they have placed a CPD marker on my account because I used my Overdraft too regularly. They have told me that although it is an authorised overdraft, which I am welcome to use, they wouldn't feel comfortable forwarding me credit if I have to use my OD anyway without having any form of credit payments to them.

Which makes sense I suppose

paulmcerlean

Hi Izools,

What do you mean, any form 'of credit payments' to them?

izools

paulmcerlean wrote: »

Hi Izools,

What do you mean, any form 'of credit payments' to them?

OK so if the bank aren't lending you any money (i.e. loan / credit card) then you aren't making any "Credit Payments" (payments for credit agreements) to them, these payments aren't part of your budget.

If the customer is making regular / excessive use of their overdraft without such "Credit Payments" in their budget, the bank has every reason to believe that the customer wouldn't be able to afford them (afford credit agreement repayments) - as they are going overdrawn excessively / regularly anyway.

Clearer than mud?

paulmcerlean

Clear Captain!

Was just asking, as I use my authorised overdraft with Lloyds a fair bit - albeit my salary that goes in each month is more than double the overdraft limit and they are my main account (they have all my DDs and SOs) and they have pre approved me for a card in online banking.