Bank Refusal again

Sam-Barr

Hi Guys.
Your help would be very much appreciated.
Have banked with Halifax/Bank Of Scotland all my life (thats about 8 years of banking lol).
No debt, great credit score, good job yadda yadda.

I have now applied twice for a credit card and both times been refused, This 2nd time I appealed and was again today told no

Bank manager wrote to me and said try again in 6 months.
I only want the card to get myself on the ladder as I have no credit history, beyond my phone contract, tv, internet, Direct debits for my rented house etc I am not really "ON the ladder" I guess.

I know they don't have to give you a reason, but one of the staff suggested I change my main account over to my visa account which I currently just keep a small emergency fund in (nieve lil' me didnt even realise it was a different type of account, I set it up a few years back to get money paid in to keep it seperate from other money). Would using a visa acct instead of my basic for my wages make a difference and if so, why?

I am planning to call up the bank manager as he invited me to call if I have any further queries. Does he have any sort of discretion to personally get me a credit card or will the refusal still stand regardless?
Obviously they want people who will make them money, I only plan to use the card to pay things like fuel and groceries then pay it all off at the end of the month, just to get me on the credit map.
Is this worth fighting, should I apply elsewhere, I'm only sticking with bank just now as if they know me and my money then they're more likely to give me a card?

Any help is much appreciated.
Sorry for being a noob lol.

izools

If you've never had a credit card before you need to build up some credit card repayment history using a sub prime card.

The four main candidates are:

Barclaycard Initial
Aqua Mastercard
Capital One Classic
Vanquis Visa

These are all sub prime cards which target people in your situation, who have no repayment history on a credit card, along with those that have had credit problems in the past like missed payments or defaults.

Given that the bank has no way to "guage" your ability to handle a credit card - they can't see how you've handled one in the past as you haven't had one - they consider you a higher risk and aren't prepared to lend.

The sub prime cards mentioned will help you build up the much needed repayment history on your credit file but they carry high interest rates so try to pay off in full wherever possible. Once you've had and responsibly used one or two of these cards for a year or so you should have built enough credit history to "climb the ladder" to a better, high street credit card.

In regard to upgrading your current account this is a very good idea and I would definitely do it.

The bank will likely have to open a new account for you rather than upgading your existing one. But this is recommended as the "Easycash" account (I presume this is what you have?) Isn't credit scored and doesn't build up an internal credit score with the bank - same as Barclays, Lloyds TSB, and Co-Operative Bank - their basic accounts won't help you get credit - they aren't behaviour scored - but full current accuonts will and are.

Good luck! :beer:

Sam-Barr

Izools, thank you sooo much! What about the fact that it's only been about 3 weeks since I put in that 2nd application for credit card with my bank, would that have any bearing if I went ahead today and applied for the Barclaycard Initial? Should I leave it a while?

daniel.thomas4

Sam-Barr wrote: »

Hi Guys.
Your help would be very much appreciated.
Have banked with Halifax/Bank Of Scotland all my life (thats about 8 years of banking lol).
No debt, great credit score, good job yadda yadda.

I have now applied twice for a credit card and both times been refused, This 2nd time I appealed and was again today told no

Bank manager wrote to me and said try again in 6 months.
I only want the card to get myself on the ladder as I have no credit history, beyond my phone contract, tv, internet, Direct debits for my rented house etc I am not really "ON the ladder" I guess.

I know they don't have to give you a reason, but one of the staff suggested I change my main account over to my visa account which I currently just keep a small emergency fund in (nieve lil' me didnt even realise it was a different type of account, I set it up a few years back to get money paid in to keep it seperate from other money). Would using a visa acct instead of my basic for my wages make a difference and if so, why?

I am planning to call up the bank manager as he invited me to call if I have any further queries. Does he have any sort of discretion to personally get me a credit card or will the refusal still stand regardless?
Obviously they want people who will make them money, I only plan to use the card to pay things like fuel and groceries then pay it all off at the end of the month, just to get me on the credit map.
Is this worth fighting, should I apply elsewhere, I'm only sticking with bank just now as if they know me and my money then they're more likely to give me a card?

Any help is much appreciated.
Sorry for being a noob lol.

having been in the same place that you are now, I know how you feel.
and I was with the Halifax :j

First things first UPGRADE that account. Having a currant account shows on your credit file. Not only that Halifax start passing your details down every office they have. from credit cards to home insurance. The important one for you is the credit card office.


2nd the voters roll is the maybe the big one. with out being on this you will struggle to get even a capital one card.

3rd DO NOT apply again. not to Cap one, Halifax or any one else till you have done at least the voters roll, and if you have all ready applied and been knocked back. I know its hard but wait 6mths before you try again

Good luck :T

izools

Sam-Barr wrote: »

Izools, thank you sooo much! What about the fact that it's only been about 3 weeks since I put in that 2nd application for credit card with my bank, would that have any bearing if I went ahead today and applied for the Barclaycard Initial? Should I leave it a while?

A little more information for you:

Barclaycard credit search using Equifax
Vanquis credit search using Experian
Capital One credit search using Experian and Equifax
and Aqua credit search using Experian - via Halifax.

Therefore I'd recommend applying for the Barclaycard Initial and the Vanquis card.

The Vanquis card does carry a higher interest rate, but it is much easier to get. And if you are approved for both together, this will have a more positive effect on your credit score long term as you are building more repayment history each month than you would with just one card.

In effect applying for Barclaycard Initial and Vanquis would have the same effect, credit search wise, as just applying for a Capital One card - as either way, you end up with one search footprint on Experian and one on Equifax.

That'd be two searches on Experian (including the recent one for your Halifax card) and one on Equifax. This will have no effect on your credit score as long as you don't apply for anything else for several months after.

Good luck, and let us know how you get on! :beer:

(Don't feel bad if Barclaycard say no, they're the strictest out of the lot but you do stand a chance still)

onefortheroad_2

Sam-Barr wrote: »

Izools, thank you sooo much! What about the fact that it's only been about 3 weeks since I put in that 2nd application for credit card with my bank, would that have any bearing if I went ahead today and applied for the Barclaycard Initial? Should I leave it a while?

o



no it will be ok so apply for it let us know how you get on

izools

That's a good point actually have you checked your credit report to make sure you're appearing on the electoral role?

In regard to waiting six months between applications this isn't always true. As long as each credit reference agency records upto two credit searches for you in any six month period the applications will have absolutely no impact on your creditworthiness whatsoever.

3-6 searches in six months will have a bit of an effect and 6+ searches will have a severe adverse effect so keep it to two or less if you want to be sure

daniel.thomas4

izools wrote: »

A little more information for you:

Barclaycard credit search using Equifax
Vanquis credit search using Experian
Capital One credit search using Experian and Equifax
and Aqua credit search using Experian - via Halifax.

Therefore I'd recommend applying for the Barclaycard Initial and the Vanquis card.

The Vanquis card does carry a higher interest rate, but it is much easier to get. And if you are approved for both together, this will have a more positive effect on your credit score long term as you are building more repayment history each month than you would with just one card.

In effect applying for Barclaycard Initial and Vanquis would have the same effect, credit search wise, as just applying for a Capital One card - as either way, you end up with one search footprint on Experian and one on Equifax.

That'd be two searches on Experian (including the recent one for your Halifax card) and one on Equifax. This will have no effect on your credit score as long as you don't apply for anything else for several months after.

Good luck, and let us know how you get on! :beer:

(Don't feel bad if Barclaycard say no, they're the strictest out of the lot but you do stand a chance still)

not suppose you know who MBNA use by any chance??

Sam-Barr

I'm deffo on the electoral register, have been since day 1.
Yes this is a very frustrating process. Will be moving my wages and Direct Debits etc to my current account ASAP then :-) Cheers.

Was going to call up bank manager tomorrow and explain I am considering taking out "Sub-Prime card" with one of the above mentioned, would this make any difference to their choice to refuse me or does the bank manager have no leeway with this and cannot then offer me something?
What bout saying I am moving banks or do they not really "fall" for that trick anymore?

lol gosh I sound so desperate and I don't even need this card. I think I just got a bee in my bonnet because they refused me.

daniel.thomas4

with out sounding rude and im sorry if i come across that way, do you have any bad credit?? unpaid phone contract? cataloge?

Sam-Barr

daniel.thomas4 wrote: »

with out sounding rude and im sorry if i come across that way, do you have any bad credit?? unpaid phone contract? cataloge?

Nope, absolutely nothing at all. All paid, all nice and neat and green and glowing on my credit report thingymabobber for Experian.
I would never have considered such a question rude regardless, as this is a money forum lol.:D