Being declined for a credit card

R5Rich

I already have a Natwest credit card which I've held for around a year probably longer than that now.

Looking through MSE discovered the Tesco card which offers 0% for 13 months so thought may as well change and make most of that.

Applied over the Christmas period and hadn't heard from them so I decided to give them a call, turns out it was declined and the letter hadn't arrived yet.

Using the Quidco offer on Credit Expert I checked through my details and all looks perfect, after talking to Tesco today I decided to pay the extra £5.95 and get a score.

Out of a possible 999 score I have...... 999!

It clearly states I have nothing going against me.

She did state that time at address, time in employment, score and few other random factors can be counted in.

I've worked for the last 4 years bar a 2 month gap due to change of jobs, lived at current address for 19 months.

If I apply and it gets declined, or even apply does this count against me?
Sainsburys do a 12 month 0% card I might try instead now but don't want to be declined over and over.

I have used the card regularly and made some large(ish) purchases on it since I've had it.

Part of me feels its because I am a low risk user so they stand to make nothing from it.

BugsyBrowne

R5Rich wrote: »

I already have a Natwest credit card which I've held for around a year probably longer than that now.

Looking through MSE discovered the Tesco card which offers 0% for 13 months so thought may as well change and make most of that.

Applied over the Christmas period and hadn't heard from them so I decided to give them a call, turns out it was declined and the letter hadn't arrived yet.

Using the Quidco offer on Credit Expert I checked through my details and all looks perfect, after talking to Tesco today I decided to pay the extra £5.95 and get a score.

Out of a possible 999 score I have...... 999!

It clearly states I have nothing going against me.

She did state that time at address, time in employment, score and few other random factors can be counted in.

I've worked for the last 4 years bar a 2 month gap due to change of jobs, lived at current address for 19 months.

If I apply and it gets declined, or even apply does this count against me?
Sainsburys do a 12 month 0% card I might try instead now but don't want to be declined over and over.

I have used the card regularly and made some large(ish) purchases on it since I've had it.

Part of me feels its because I am a low risk user so they stand to make nothing from it.

With a 999 credit score have you asked credit expert for a loan mate?

paulmcerlean

You have wasted £5.95 on that 'score' - it is not representative of how tesco or any lender will score you. Just a money making exercise for them.

R5Rich

Wasted 95p, got £5 cashback for using quidco to sign up to credit expert.

And if that is the case how am I going to check for any possible stumbling blocks? I can't see any reason why I wouldn't legitimately get approved

izools

Possible stumbling blocks:

Having too much "Exposure" to credit - i.e. owing little but having enough credit available across your accounts that you could potentially owe more than someone on your salary is likely to handle well - i.e. having a limit to income ratio of more than say 50% eg.

Owing too much in relation to your credit limits - i.e. having a Debt to Limit ratio of more than say 50% eg.

Being considered "Unstable"; i.e. having changed address / employer / bank / name recently.

Having opened a new account elsewhere recently - creditors like to see your youngest account having been open long enough for you to have proven you can handle it responsibly - i.e at least 6~12 months positive repayment history on your most recently opened account.

Having data on your credit file that you were unaware of; i.e. an incorrect late payment marker or default resultant from identity theft.

Having made credit card cash withdrawals / minimum payments more often than the new creditor would like.

Not being the "sort of customer" the bank is looking for - i.e. everything is fine but your profile doesn't match their "target customer profile".


Bottom line is there are so many reasons unknown to all but the team who devised the credit scoring system in use by the credit card company who you applied to, it's still going to be a bit of a stab in the dark.

Experian / Equifax / Call Credit's own "Score" is generated using their own criteria - not the card companies' criteria - and often takes into account much less information when calculating your score than any actual underwriter / credit scoring system will use.

The scores aren't indicative of your likelihood to be approved. The credit reference agencies market the scores as such but they are not due to the above.

R5Rich

Thanks for clearing it up a little iztools, they are so vague when you talk to them as they won't tell you anything.

Would be nice for a bit of transparency with this so people can sort anything they may need to.

izools

If you feel up to some heavy reading these two posts explain the whole sherade a lot better:

http://forums.moneysavingexpert.com/showpost.php?p=39960540&postcount=20

And

http://forums.moneysavingexpert.com/showpost.php?p=39961230&postcount=22

Might nod off part way through though.