Confused - Gd credit, refused CCs

nicki_d987

Hi,
Can anyone please advise?
My husband and I are going abroad, so following MSEs advice for overseas spending, my husband and I applied for a Halifax Clarity CC, (we both meet the criteria in terms of salary etc) we were both rejected. We then both applied for a Nationwide CC, and were both rejected again.

We have a mortgage, savings account and current account with nationwide, so I went into branch. They used common sense, and overruled the rejection, yet couldn't tell me why we had been rejected in the first place.

Both my husband and I then signed up to experian, we're on the electoral role at our property, and both have LOADS of green circles where we overpay our mortgage every month and don't go over our overdrafts.

My husband went into halifax, and, like Nationwide, they overruled the rejection, but couldn't tell him why it had happened.

What concerns me, is that we need to apply for a re-mortgage soon, and surely this problem, which even Experian can't explain (I telephoned them, and they said everything looks fine), will continue to affect us.

Any help/suggestions?!
Thanks in advance!

BugsyBrowne

nicki_d987 wrote: »

Hi,
Can anyone please advise?
My husband and I are going abroad, so following MSEs advice for overseas spending, my husband and I applied for a Halifax Clarity CC, (we both meet the criteria in terms of salary etc) we were both rejected. We then both applied for a Nationwide CC, and were both rejected again.

We have a mortgage, savings account and current account with nationwide, so I went into branch. They used common sense, and overruled the rejection, yet couldn't tell me why we had been rejected in the first place.

Both my husband and I then signed up to experian, we're on the electoral role at our property, and both have LOADS of green circles where we overpay our mortgage every month and don't go over our overdrafts.

My husband went into halifax, and, like Nationwide, they overruled the rejection, but couldn't tell him why it had happened.

What concerns me, is that we need to apply for a re-mortgage soon, and surely this problem, which even Experian can't explain (I telephoned them, and they said everything looks fine), will continue to affect us.

Any help/suggestions?!
Thanks in advance!

I know you have a mortgage, but do you have any history or proof you can handle a credit card?

Any

The most likely reason you were rejected was that you don't mention any past credit, apart from mortgage.

That is why computer said no, but human being said yes.

The computers are designed only to pick people in very low risk category, and for that they have criteria set...

The banks/computer had nothing to judge you on - you know you have money and you are good with them, but the banks don't now that. Because you had no past credit.

nicki_d987

Hi,

Thanks for those replies, I do have a credit card, but I don't use it very often, so that's probably why. I don't see it making sense though, surely if my mortgage is in great shape then I'm dealing with my debt?!

Oh well, thanks for helping me out anyway!

[Deleted User]

nicki_d987 wrote: »

Hi,

Thanks for those replies, I do have a credit card, but I don't use it very often, so that's probably why. I don't see it making sense though, surely if my mortgage is in great shape then I'm dealing with my debt?!

Oh well, thanks for helping me out anyway!

Mortages are one thing - credit cards are another entirely. You're not able to take your house down to the high street and splurge it all in TK Maxx and JD Wetherspoons (or John Lewis and Costa Coffe, depending on your preferences).

If you can't afford to pay your mortgage payment in full, you will quickly run into big trouble. If you can't afford to pay your credit card in full, a lot people will figure, "so what?"

Many people seem to go nuts when they get a credit card and see it as a new, unlimited income stream.

I'm sure that doesn't apply to you, but they still need to see some evidence.

Any

Percisely what ZX says... Mortgage is secured against the house-repayment is your priority. Credit cards are unsecured debt.

If you have a card but not using it, how does that help? They need to see use to be able to judge your repayments.

That is how many people build up their credit report... get high interest card that is easier to get (high risk=high interest), buy every day stuff on it and pay off in full every month (as to avoid paying that ridiculous interest)...

Or take card from their own bank, no matter what are they offering in a way of good deals (which should be easier to obtain as your bank can judge you on your current account as well-other banks cannot as they cannot see the details) and do exactly the same.

Blitz01

My husband went into halifax, and, like Nationwide, they overruled the rejection, but couldn't tell him why it had happened

Halifax, at branch level, cannot over-rule these decisions. (no idea about Nationwide though).
Is there something missing from this story?

ironlady2022

Blitz01 wrote: »

Halifax, at branch level, cannot over-rule these decisions. (no idea about Nationwide though).
Is there something missing from this story?

They can override the decision, I use to work for a bank and if the customer got declined but had good grounds to overturn, we would appeal the decision, have a team manually look at report and then overturn the decision. 8/10 times this worked for my client!

Blitz01

mayling03 wrote: »

They can override the decision, I use to work for a bank and if the customer got declined but had good grounds to overturn, we would appeal the decision, have a team manually look at report and then overturn the decision. 8/10 times this worked for my client!

Which is not over-riding the decision.
It's appealing it, and anyone can do this. It certainly can't be done immediately either.

(FYI, my wife is a bank manager at our local Halifax branch )

tasmin96

I also just applied for Halifax Clarity credit card based on MSE advice.

I was also rejected. I am an experian account holder and I can see that Halifax made an application to Experian as part of this application.

My credit score on Experian is 999 - Excellent.

I have two credit cards that I use regularly and experian shows that I always pay them off in full every month. Is that the problem?

I think MSE should point out that Halifax may reject your application if you have too good of a credit rating, and that your credit score may be impacted by applying and being rejected.

I will just have to resort to spending abroad in all the ways MSE warns against.

Tixy

tasmin96 wrote: »

I also just applied for Halifax Clarity credit card based on MSE advice.

I was also rejected. I am an experian account holder and I can see that Halifax made an application to Experian as part of this application.

My credit score on Experian is 999 - Excellent.

I have two credit cards that I use regularly and experian shows that I always pay them off in full every month. Is that the problem?

I think MSE should point out that Halifax may reject your application if you have too good of a credit rating, and that your credit score may be impacted by applying and being rejected.

Very unlikely that you have been rejected for having too good a credit rating. Your credit history is only one of the things a potential lender takes into account when deciding to lend to you. It would seem that you have been declined based on one of the other factors.

tasmin96 wrote: »

I think MSE should point out that Halifax may reject your application if you have too good of a credit rating, and that your credit score may be impacted by applying and being rejected.

MSE point out that your credit score is not important. So its not really worth mentioning that it will be impacted by applying for credit. MSE does mention that by making lots of credit applications in a short period can affect your chance of being successful for other products in the short term.

And it is no greater impact for being rejected than being accepted. The fact that a person is rejected is not something that appears on your credit file.

tasmin96 wrote: »

I will just have to resort to spending abroad in all the ways MSE warns against.

Why? halifax clarity card is not the only recommended way of spending abroad. Just because you can't get this you are going to choose the worst methods?
And quite why you would need to use all the method MSE warns are expensive I'm not sure.