NatWest Credit Card - branch appeal

spale

Hi guys

I was wondering if anyone had experience with similar issue I have with NatWest;

I bank with Natwest for a while now and I recently applied for their credit card.
I hold a Step account which is kept in good order, no overdraft, no bounced cheques, salary paid in directly into that account...

I applied for their credit card hoping the best chance of getting one would be through the bank I already bank with.
My application was declined. So I called and they told me they declined the application based on "my bank account" and that I should speak to my branch as they would be able to appeal the decision.

OK, so I called my branch but they said there is nothing they can do and I should call credit card department again. But they hinted the reason might've been as I "only" have a basic bank account, so they offered to open a a Current Plus account which would apparently help with getting to my credit card.

This could actually make sense as when I checked my credit file few days after, the only search I found was for my bank account, but nothing from the credit card people.

Now, I am puzzled.
Do they decline applications of existing customer just on the fact they Are holding a "wrong" account with them??
Also, anyone knows, who should I speak to appeal?
Anyone familiar with this "branch appeal" business?

Thank you

IceCreamDreams

If I'm not mistaken, a basic bank account with any provider will not allow any credit facilities (i.e. not eligible for credit cards, overdrafts or loans) - a more seasoned MSE on here may be able to correct me but with this in mind, Natwest probably won't have bothered putting your application through at all and could quite easily have denied you based on the account you hold with them....

stclair

All applications are processed if you have been declined and would like to appeal you can contact your local branch.

However I would make sure you go armed with your experian and equifax credit reports.

Have you had any history of managing credit before? Is there a reason why you have not upgraded your current account?

spale

oh, I see.
So, considering I opened another account few days ago, ADVANTAGE GOLD, would I have to wait the normal 6 months before applying again or could I apply again soon?

Cheers

stclair

The bank would normally advise to allow between 3-6 months inbetween making applications

chambta

It'd be very, very rare to get a credit card with a Step Account. Open and run well a full account for 6 months and re-apply.

CIFASking

Same thing happened to my girlfriend with another bank. Like yourself she thought that the best way to go about getting a credit card would be through the bank she has dealt with all her life. Not so it seems - she got exactly the same situation as yourself. Having a good relationship over a period of years with a bank doesn't seem to count for much these days unless you've had some kind of a credit facility with them - whilst a basic bank account will usually show on a credit check, it's only accounts with an overdraft facility that count as credit.

As the credit card application is processed at some nameless facility somewhere other than your branch, you'll no doubt be treated exactly like a new customer who's never banked with the bank before - and get declined due to your lack of credit history.

I agree with the person in the bank said about opening an account with some kind of overdraft - I have also heard of people being advised to go and get some kind of credit such as a cheap mobile phone contract. As for the lack of credit search on your credit file, I agree with the previous post, it looks like they haven't even bothered progressing your application to the stage where they would do a search!

spale

stclair wrote: »

All applications are processed if you have been declined and would like to appeal you can contact your local branch.

However I would make sure you go armed with your experian and equifax credit reports.

Have you had any history of managing credit before? Is there a reason why you have not upgraded your current account?

Well there is not much on my credit file.
One Natwest bank account, all zeros, and few searches (insurance quotes and now current account application)
No credit cards or loans in past.

As for the account, to be honest I just wasn't bothered before so I left it as it was. I dont need an overdraft, the debit card they provide was enough (since its a normal Visa debit now)...

When I talked to the lady who opened this new account for me, she told me based on my salary and how the account was run I could have one of their private account?? sorry don't know the name of it, but since some silly fees were involved I said I was fine with the normal bank account.

What puzzles me is that whatever bank account I have with them, don't they see how its ran? Wouldn't that be enough for them?
Also, to be honest, I don't know what I would bring more to the appeal than I already gave/told them.

spale

hmmm, now that you mentioned mobile phone... I got 2 lines with Virgin Mobile, but its not showing on my Experian.
Although the bank account is on there:
Company name: NATWEST BANK
Account type: Current Account
Started: 09/07/2010
Overdraft Balance : £0
File Updated for the Period to: 13/03/2011
Status history: 0 0 0 0 0 0 0 U
Summary of payment history: In the last 8 months of account activity, the number of status 1-2 is 0 and the number of status 3 is 0

CIFASking

Unusual that the 2x Virgin Mobile lines aren't showing up as Communications. The unfortunate thing is that companies in the credit industry look upon basic bank accounts as being almost invisible when it comes to determining whether someone is good for credit - it'll always have 0's or U's as the status unless it's being run in a seriously bad way. You could have £250k in the account and they wouldn't know (although you'd like to think that your own bank would take that into consideration if you had that kind of balance!) it'd just be 0's the same as someone with 25p in their account.

spale

Thats the thing. Before applying for the credit card, I wan't even aware that having a basic bank account was a bad thing
But as you say, I expected the bank, in my case NatWest, to look into how its ran and to take into consideration the balance and the amount going in every month.

Oh well, you learn something every day.
Thank God forums like this exist so you can find out what is really happening rather than listening to bank managers

The only issue now is that I wanted that credit card before the holiday (the biggest reason why I applied in the first place) and if I have to wait 6 months... I'm now seriously thinking of going to another bank with my bank statements and see if someone else would offer me the account and the credit card at the same time.