Halifax Clarity declined

trainset

Hello all,

My first post so apologies if the subject is covered elsewhere.

I recently applied for a Halifax Clarity credit card but was declined. When I approached Halifax they were rude and obstructive and said the problem lay with Experion.

I obtained my Experion/Credit Expert rating which turned out to be near perfect (981 out of a possible 999). Experion further told me that Halifax and not they had declined my application.

I can only conclude that Halifax don't want me because I settle all my bills on time and therefore can't rip me off with high interest rates on outstanding monies.

Your views and opinions would be appreciated.

Thank you all.

bigadaj

Credit scores from the ratings houses mean nothing as is constantly reported here. List any adverse Credit history, missed or late payments, defaults, ccjs, together with whether on electoral roll. Also salary and other debts could have an influence, both actual debt and available credit.

Tixy

Halifax will have said something like you were declined following them conducting a credit search with experian.
Experian did not turn you down, but halifax may have turned you down because of something on your credit file.

The score experian will sell to you is not really relevant, as lenders never see it. What they do see if the detail on your report.

Obviously we cannot say why you were declined but examples that could fit a high 'score' from experian but stll mean a decline by a lender - might be that halifax think you have too much credit available compared to your income. Might be they think you already have a lot of unused credit available. Might be that you have several credit cards. Might be that you are financially associated with someone with issues on their file (which isn't reflected in experian's score but is taken into account by potential lenders).

Of course it might not be any of these things they are just ideas as to what could fit.

Halifax clarity is a prime card and you won't have been turned down just because you pay bills on time, they'd still make money out of you on transaction fees.

Gromitt

trainset wrote: »

I recently applied for a Halifax Clarity credit card but was declined. When I approached Halifax they were rude and obstructive and said the problem lay with Experion.

I got declined by Halifax last year, but Tesco and MBNA accepted me in the same month, both with a 3K limit. All I thought was "Their loss".

As it happens, the MBNA card gives me better cashback, so I'm glad I got turned down, else I would not had researched alternatives.

trainset

bigadaj wrote: »

Credit scores from the ratings houses mean nothing as is constantly reported here. List any adverse Credit history, missed or late payments, defaults, ccjs, together with whether on electoral roll. Also salary and other debts could have an influence, both actual debt and available credit.

Thanks for the fast input.

I have none of the above (adverse credit history, missed or late payments, defaults, ccjs).
I have been on the electoral roll for 38 years without break.
I've lived in my existing mortage-free home for 20 years +
I have no debt and access to significant credit.

So perhaps naivelly, I stick for now with my gut feeling that Halifax feel they can't milk me. Silly of them really, I was planning to transfer other assets in thie direction.

YorkshireBoy

trainset wrote: »

So perhaps naivelly, I stick for now with my gut feeling that Halifax feel they can't milk me.

Very naive. I've had Halifax credit cards for around 7 years now...a mixture of 0% BT cards and 0% purchases cards. I've never paid them a penny in interest and charges (nor any provider for that matter) but they keep offering me guaranteed cards...generally a month or two after closing a card.

You simply don't meet their target market. Maybe it's an age thing? I mean, 38 years on the ER makes you at least 56...maybe older? Maybe the card you applied for was aimed at another demographic?

Silly of them really, I was planning to transfer other assets in thie direction.

Silly of you really (take it constructively ) if you don't put your "assets" in the most profitable place. If that's Halifax then that's where they should go. Principles generally cost money...your money!

seriousDFW

Great feedback from others.

People tend to take credit applications very personally. The banks don't see it like that, especially with automated process determining the result of applications.

It's not that they think they can't milk you for charges etc. (as has been said, this is a prime card so not the type of card that attracts people who are going to pay lots of interest/charges).

I have been rejected for other cards in the past, like M&S, Virgin and Tesco, yet I've been accepted by Barclaycard, HSBC, First Direct, Mint, Egg, and this Halifax Clarity card too. It just depends on particular circumstances meeting that card's particular demographic of customer.

Whenever I've been rejected, I've just waited 6-12 months then applied elsewhere. Ironically, now I'm paying down lots of cards, I'm getting offers for guaranteed cards that are the best cards around, and I'm nowhere near as wealthy or well-off as you (I don't even have a mortgage). So don't take offence at this decision. And still consider Halifax for your investments - even though they don't want to offer you this credit card, you may be able to have a profitable relationship with other products.

trainset

seriousDFW wrote: »

I'm nowhere near as wealthy or well-off as you (I don't even have a mortgage). So don't take offence at this decision. And still consider Halifax for your investments - even though they don't want to offer you this credit card, you may be able to have a profitable relationship with other products.

Thanks to all who have posted so quickly with some great opinions.

I take offence however, that I'm considered wealthy and well-off. The maths is right that I'm at least 56 but where is it suggested that I'm either wealthy or well-off.
Mortgage paid off?
No debt?

Many a person is in the same position as me, although not wealthy and well-off, have been careless and are now starting to "smell the coffee."

seriousDFW

trainset wrote: »

Thanks to all who have posted so quickly with some great opinions.

I take offence however, that I'm considered wealthy and well-off. The maths is right that I'm at least 56 but where is it suggested that I'm either wealthy or well-off.
Mortgage paid off?
No debt?

Many a person is in the same position as me, although not wealthy and well-off, have been careless and are now starting to "smell the coffee."

Ok let me rephrase that - you're wealthy and well off compared to me. I'm not suggesting you're rich, I am just suggesting that you are in a better financial position than me (this is indisputable since I have no mortgage, and if you have a house paid-off, that's a huge asset, and I do have debts and you don't, though I am 27), and have been rejected for cards that I have been accepted for. I said this to indicate that the criteria for acceptance aren't as clear cut as you think.

Please don't be offended by what I said, it wasn't meant to cause offence.

thomasdown

That will be the problem then, you are debt free so therefore have absolutely no record on paper of being able to pay your bills on time for the last few years? Halifax are a prime lender/ very picky.

You will have to prove to potential lenders that you are a good risk not a bad risk. So you will have to credit build to prove you can handle credit in a correct manner (i.e. on time, no late payments etc) So its going to have to be a high APR card I'm afraid for about a year to prove to people like Halifax that you can re-pay debts. I know this sounds whacky because you probably have a high amount of spare cash in the bank and floating about every month but it needs to be done. Just pay the card off in full every month for about 6 - 12 months and then re-apply for a prime credit card like (Tesco, M&S, Halifax etc etc) and you should get accepted.

Hurri

It is peculiar - I was turned down for the "Reward Clarity" myself too last month. Despite the fact the month before I was getting offers for a 'guaranteed credit card' with them.

I've also got two prime cards, Tesco and an MBNA CC card, the former since August last year so based on 'recent history'. All history green ticks, and Halifax current account ran well (min £1000 credited each month, never touch the overdraft). Green ticks for credit cards go back 3 years, so have 3 years of history.

She couldn't explain why I'd have been guaranteed for the One card but declined for the Reward Clarity. My response was "Halifax's loss not mine".

Current available credit / salary ratio 22%
Current credit used 50%
Other financial commitments - £35/month mobile phone contract

I wouldn't take it personally, though I admit I was rather confused when I saw the advisor.