Why can't a customer be told a banks approval criteria?

Nine_Lives

My brother has been refused a first direct 1st account & an eSaver account.

He's 19, earns about 16.5k, no debt. 1 credit card which is paid off in full.

I'm 28, earn about 18k, no debt, 2 or 3 credit cards paid off in full, various bank accounts. I was accepted no bother.

The "apologies" letter he received says that they can't tell him their criteria for security purposes.

So he has no way of knowing what he needs to do to better his chances of being accepted.
It could be ditch the credit card. Earn an extra £500pa, it could be anything.

Seems a bit silly to me that it's top secret.

opinions4u

Overtly state the answers that have generated the low credit score result and naughty people would be more likely to lie on future applications.

Then the bank will see an increase in bad debt.

stclair

If the bank was to tell you the reason for a decline the applicant would only re-apply again amending the application to fit the requirements.

scottishblondie

As above - people would manipulate their applications to get the accounts they want. Not something that the banks would be keen on!!

meer53

K_P83 wrote: »

My brother has been refused a first direct 1st account & an eSaver account.

He's 19, earns about 16.5k, no debt. 1 credit card which is paid off in full.

I'm 28, earn about 18k, no debt, 2 or 3 credit cards paid off in full, various bank accounts. I was accepted no bother.

The "apologies" letter he received says that they can't tell him their criteria for security purposes.

So he has no way of knowing what he needs to do to better his chances of being accepted.
It could be ditch the credit card. Earn an extra £500pa, it could be anything.

Seems a bit silly to me that it's top secret.

Is he on the electoral roll ? How long has he been in his job ? Has he checked his credit file ?

If people knew the criteria, as others have said, people would try their best to get around it.

Nine_Lives

I guess that just exposes my nature then - too honest, too trusting. It doesn't occur to me to lie on an application because it's not something i would do, but i guess others will and do.

Electoral roll - yes
In job - since Aug 2008
Credit file - no. Don't you have to pay for this?

Derivative

K_P83 wrote: »

I guess that just exposes my nature then - too honest, too trusting. It doesn't occur to me to lie on an application because it's not something i would do, but i guess others will and do.

Electoral roll - yes
In job - since Aug 2008
Credit file - no. Don't you have to pay for this?

Credit file costs about £2 to check.
Annoying, but it's generally worth it, as you could be making more than £2 in lost interest if you can figure out why you're being declined for stuff.

It's not always about 'lying' on applications either - it may be better or worse to report some of the optional stuff.

stclair

K_P83 wrote: »

I guess that just exposes my nature then - too honest, too trusting. It doesn't occur to me to lie on an application because it's not something i would do, but i guess others will and do.

Electoral roll - yes
In job - since Aug 2008
Credit file - no. Don't you have to pay for this?

Things such as that would be picked up by the National Hunter.

http://www.nhunter.co.uk/how.html

izools

stclair wrote: »

Things such as that would be picked up by the National Hunter.

http://www.nhunter.co.uk/how.html

N Hunter doesn't work as long as you lie consistently.

stclair

izools wrote: »

N Hunter doesn't work as long as you lie consistently.

Yes im well aware of that....