Refused Halifax current account: credit scoring

bitsandpieces

Halifax have refused me a current account with them, due to my failing credit scoring. I've checked my credit report on Experian and Equifax: I've got under £100 outstanding on credit cards and have paid these off in full every month for years. Nothing dodgy on there I can see (in terms of credit I've been boringly safe). I don't need a Halifax current account - I have 1 elsewhere, and just wanted the cashback they were offering. I'm trying to decide whether it's worth asking them to reconsider refusing me. I can't see any reason why they would refuse: my financial position is boringly sound and I've been able to get far more credit than this account's little overdraft elsewhere in the past (including with the Halifax :rotfl:).

I've been on the phone to Halifax for about 30mins: trying to get basic information about how to ask them to reconsider (apparently I need to print out a copy of my Experian credit report and bring in a copy to a branch). I've found them an almighty pain to deal with - getting the most basic info out of them was like pulling teeth - and I'm not sure if it's worth the hassle of having a current account with them for the cashback.

On the other hand, if I don't get them to reconsider, will this be any kind of negative in terms of my credit history? I can't see their search on my credit file as yet. Anyone know if this is an issue I should consider?

rb10

Just get a copy of your Experian credit report, and hand it in at a branch with a covering letter addressed to the underwriters at Halifax asking them to reconsider.

madnes

Halifax are a pain. I have had a current with the for 18 months.
I have all green 0's on my credit files. I have no ccj's, out standing defaults. My salary and credits are paid to them which totals over £1200 per month and I have an overdraft of £300.00 Which I hardly use.

Halifax recently decided to remove my overdraft after speaking with a risk manager it was decided they would leave the overdraft.

Every time I apply for a credit card with them the application is declined. I took a Crapone card last year and pay the balance in full each month but even this does not seem to be helping me.

They claim they check my credit score. Yet they don't seem to be as no trace of a search shows. They must be using internal date.

I wrote to the underwriters who replied with a standard letter saying thanks for documentation I sent yet I am still declined.

Can't see what I am doing wrong!!

BigAndy_79

As you name suggests, that is indeed "madness...!"

stator

I got denied by Halifax a few years ago. The only reason I can think of was because I had moved recently. I wrote a letter to the branch manager to appeal the decision (as the rejection letter said I could) but never got a reply at all. The worst part of it was that at exactly the same time as I applied for the current account I also applied for a credit card. I didn't particularly want one, but they offered one with 0% for 12 months so I said okay. The credit card was instantly approved with a limit of 7k and the current account needed approval. In the end I just though "stuff them", opened a bank account with Lloyds TSB, used the interest free credit on the CC for the full 12 months and then cancelled it after 12 months. I doubt I will use them any time in the near future. I know it's not personal but I was slightly offended by the rejection and confused by the contradiction of denying me a current account with a small overdraft I wouldn't have used and instead giving me a credit card with a 7k limit.

horngkai

I applied to Halifax reward account earlier this year twice and got rejected. None of those left any search on my credit report. I reapplied again with the cashback reward from moneysupermarket, this time stating that I will switch my account (I have 1 account to switch around for these purposes), and no problem opening the account at all now.

opinions4u

Halifax used to have a two stage automated underwriting system. It sounds like it hasn't changed.

Stage one is a credit score based on your application details. If you fail this you are declined and they don't carry out a credit check.

If you pass stage one, they move on to stage two and obtain a credit reference. This will show as a search on your credit file.

Bosie

opinions4u wrote: »

Halifax used to have a two stage automated underwriting system. It sounds like it hasn't changed.

Stage one is a credit score based on your application details. If you fail this you are declined and they don't carry out a credit check.

If you pass stage one, they move on to stage two and obtain a credit reference. This will show as a search on your credit file.

I've heard of this before, I guess it saves them money not getting you checked by Experian:o

bitsandpieces

opinions4u wrote: »

Halifax used to have a two stage automated underwriting system. It sounds like it hasn't changed.

Stage one is a credit score based on your application details. If you fail this you are declined and they don't carry out a credit check.

If you pass stage one, they move on to stage two and obtain a credit reference. This will show as a search on your credit file.

Would explain a bit if that's what they've done - they insisted I had to print out a copy of my Experian credit report to bring into the bank myself if I wanted them to reconsider :rotfl:

If there's no credit check on my file resulting from this, I may just tell them I no longer want an account (after they've dealt with my complaint about keeping me on hold for so long). Their telephone staff were quite nice, but remarkably useless - so running an account with them may be a pain. Also, if they reconsider my application, not sure if I'll still get my £50 cashback for signing up online.

madnes

opinions4u wrote: »

Halifax used to have a two stage automated underwriting system. It sounds like it hasn't changed.

Stage one is a credit score based on your application details. If you fail this you are declined and they don't carry out a credit check.

If you pass stage one, they move on to stage two and obtain a credit reference. This will show as a search on your credit file.

Explains it then for me. No wonder they want me to send in a copy of the credit score. Not bothered as Natwest recently accepted me for a card.

madnes

BigAndy_79 wrote: »

As you name suggests, that is indeed "madness...!"

Madnes.. Life m8!