Does "guaranteed acceptance" mean no credit check?

etilico

Hi,

I am a Halifax customer and each time I login onto my halifax current account I get some message that says they guarantee to approve my application. Does it mean they will not do a credit check if I apply?

I'd like to keep my credit score as high as possible, so I would consider getting a credit card from them if no credit score is required.

thanks

jamesd

No. It probably means that they would be happy in a bad case to give you a £100 credit limit and 45% interest rate. Or in a good case the best deal they offer.

pvt

Etilico,

No companies get a "credit score" from the CRA. A credit score is a feel good (or bad) product that CRAs sell to the general public to indicate what the CRA assesses their credit worthiness is - as CRAs don't lend money, they're pretty much worthless.

The Halifax would definitely do a credit application search of your CRA data, just to ensure the application is recorded for other lenders to see. And even if they didn't it would only be a matter of a couple of months before the new credit card account details and credit limit would be reported routinely to the CRAs anyway.

SuperSaver123

Well, actually I didnt have a credit search for preapproved credit card with Halifax. This was over 2 years ago though, perhaps now it is different.

rb10

You will not be credit checked if you apply for a credit card with a guaranteed offer.

This is because Halifax have access to your credit reference agency data anyway through your current account. They have essentially already done the underwriting based on what they already know.

They will, however, report details of the credit card and your repayments to the CRAs once the account is open.

PurplePow

I have quite a poor credit record (can only be accepted for Barclaycard Initial etc.) and when I logged in I got the guaranteed message. I got the card no problems, only a £500 credit limit and 21% APR but it's far better than the 30% APR cards I can usually get accepted for, and I've been paying it off in full each month.

Gobbyuk

I had a guaranteed acceptance on Halifax, so though, what the heck, if guaranteed, I don't mind a search footprint.

I applied, only to be told declined and that I don't meet the criteria. I complained to Halifax as why offer if Guaranteed Acceptance if it doesn't mean that and asking them to remove the searches.

They did Search my File, no abnormalities from what I can see.

They responded when I complained to tell me I didn't meet their criteria and that they wouldn't remove my searches, I have a Rewards account with them, account always in good standing.

Am very annoyed with Halifax, not only was the card not guaranteed they put four searches on my file for that application!

cse

Everything got messed up at the printers. The offer should have said "Guaranteed acceptance? No, credit checks!"

jamesd

Gobbyuk, was this on or after 1 March 2011 when the Advertising Standards Authority took over regulation of online advertising? If it was then I suggest that you make a complaint to the ASA about the false and misleading advertising presented to you.

It seems that Halifax is still using this type of advertising so there is ongoing harm to consumers from the false and misleading advertising.

Gobbyuk

Hi,

Indeed it was, I even took a screenshot, it was the 24th May 2011.