Declined tesco credit card - will it affect credit rating?

MissMayflower27

Hello

I applied for a Tesco clubcard credit card as we're getting married soon and have a few bigger purchases coming up.

I have a bit of a funny address (actual address not always registered correctly on system but is all ok) and I also don't have any bills in my name as I live at home.

The application has been declined although they won't say why - just that didn't meet their criteria. I've just got a mortgage approved so I'm sure my credit rating is fine and I have no debt (I have 2 credit cards with no balance on them).

I can't understand why I was declined apart from that my address and lack of bills meant I didn't meet the computer criteria but what i want to know is will this decline leave a mark on my credit rating or affect my credit rating in any way? I'm not too sure how the ratings work but I don't want this random decline to go against my credit.

any advice appreciated

thank you

oldagetraveller

Maybe they don't like the available credit with the limits of the two existing cards? Although there is no outstanding balance the two credit limits of those cards could have influenced their decision?

BugsyBrowne

MissMayflower27 wrote: »

Hello

I applied for a Tesco clubcard credit card as we're getting married soon and have a few bigger purchases coming up.

I have a bit of a funny address (actual address not always registered correctly on system but is all ok) and I also don't have any bills in my name as I live at home.

The application has been declined although they won't say why - just that didn't meet their criteria. I've just got a mortgage approved so I'm sure my credit rating is fine and I have no debt (I have 2 credit cards with no balance on them).

I can't understand why I was declined apart from that my address and lack of bills meant I didn't meet the computer criteria but what i want to know is will this decline leave a mark on my credit rating or affect my credit rating in any way? I'm not too sure how the ratings work but I don't want this random decline to go against my credit.

any advice appreciated

thank you

Available credit you have may have been the answer for your decline.
Also other lenders when checking your report will see the credit search but will not know if it was a acceptance or a decline.

So 1 application is not going to harm your credit rating.

CLAPTON

normally having a credit card and using it properly improves the credit rating: do you actually use the cards

MissMayflower27

Yes I use the cards but I pay them off each month so have no outstanding balance

I don't mind their being a record of their search on my credit rating as long as it doesn't go against me that its been declined really

izools

Don't worry; no record is kept of whether or not you were approved for the card, just the fact alone that you applied.

Being declined for a card doesn't affect your credit rating.

What does, however, is a lot of applications in a short space of time - so if you haven't applied for anything in a year or so, then all of a sudden apply for three cards - irrespective of whether they're approved or not - you aren't atall likely to get a fourth due to the multiple recent applications on record; as this comes across as your trying to overcommit yourself.

MissMayflower27

This is the only card Ive applied for but I've applied for a mortgage at the same time so I wonder if this has had an affect?

trebor21

It actually does affect your credit rating, as it gets recorded as a search against your profile, each search reduces your credit score, making it harder to get the next application approved.

CreditCruncher

trebor21 wrote: »

It actually does affect your credit rating, as it gets recorded as a search against your profile, each search reduces your credit score, making it harder to get the next application approved.

Please don't give incorrect advice;there's no such thing called a Credit Score.

Different lenders have different criteria to assess a credit application and they use the data provided by various Credit Reference Agencies to do this.

OP should be OK as it would appear on her file only as a search but as others have said too many searches in a short space of time won't look good.

izools

trebor21 wrote: »

It actually does affect your credit rating, as it gets recorded as a search against your profile, each search reduces your credit score, making it harder to get the next application approved.

One single, lone search all by itself over the course of a year shouldn't make any difference to an applicants ability to obtain credit.

Only when the applicant starts to built up a large number of searches does this have an effect. Rule of thumb is that the third search in a six month period is the one that starts to reduce your score, the first two shouldn't make a jot of difference.

This does of course depend on the scoring model, I was able to get a Zopa loan last year with nearly half a dozen recent searches. Still got it at 12.9%, which is a great rate especially for a loan as small as £4,000. My bank quoted me 18.9%.