Read this if you've been refused a credit card

ems46
ems46 Posts: 10 Forumite
Hi everyone,

After getting some great advice from forum posters I thought I'd return the favour and share this with you all, it's probably common knowledge but it might help someone.

I recently applied online for the Halifax Clarity credit card and subsequently received a rejection letter a few days later. I was very annoyed by this and especially for the lack of information provided as to why I was refused the card. So I wrote a letter to Halifax and enclosed with it proof of income, a copy of my Experian credit report which is rated 'Good' and proof that I am on the electoral register at my current address.

I posted the letter last Monday and thought no more about it until yesterday I received a letter from Halifax informing me that they have re-considered my application and are now giving me the card, needless to say I'm very pleased since I mainly want this card for use abroad.

Obviously writing a letter and sending documentation is not a guarantee that you'll get the card second time round but there's definitely no harm in giving it a go since the initial search will be on your credit report anyway.

Hope I've helped someone by posting this!
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Comments

  • ScottHeron
    ScottHeron Posts: 42 Forumite
    Hi :)

    Thanks for your information..

    I've banked with bank of scotland all my life... 16+ years and was very unhappy at getting refused a student credit card

    Will definately give this a try in the future :)
  • beckysld
    beckysld Posts: 32 Forumite
    This is quite encouraging as everyone I know would normally just leave it be!

    Do you mind if I ask if you bank with Halifax, and how long for? I have been considering this card and bank with Halifax but I only have a 'Fair' credit rating at the moment.

    Thanks! (and well done! :j)
  • ems46
    ems46 Posts: 10 Forumite
    Hi Scott and Becky, glad to see my random post has been useful!

    Becky, I actually don't bank with Halifax so this is my first encounter with them. Since you bank with them I'd imagine that would stand in your favour because they will have an idea of your income and if you meet payments on time etc.

    You'd probably be better off applying for the cc in branch rather than online because I've heard reports of people being declined online but being successful in branch so that could be worth a shot. I don't know how much bearing the credit rating will have, it's obviously a factor but as long as you can prove you will be able to make repayments that'd certainly help.
  • Experian_company_representative
    Experian_company_representative Posts: 2,134 Organisation Representative
    Part of the Furniture Combo Breaker
    Yes, always worth exploring a credit refusal, particularly if you think it was unfair. You can appeal a credit refusal by law if the decision was made using scoring, then your application has to be reviewed by a person. It does give you then chance to provide other information to support your application and, as ems46's experience shows, this can certainly be worthwhile.

    James Jones
    Official Company Representative
    I am an official company representative of Experian. MSE has given permission for me to post in response to queries about the company, so that I can help solve issues. You can see my name on the companies with permission to post list. I am not allowed to tout for business at all. If you believe I am please report it to forumteam@moneysavingexpert.com This does NOT imply any form of approval of my company or its products by MSE"

    Posts by James Jones, Neil Stone, Stuart Storey & Joe Standen
  • giblet10
    giblet10 Posts: 494 Forumite
    Yes to all of the above, over twenty years of having credit cards and I always appeal rejections - the majority of which go in my favour..

    Not appealing is a waste of a valuable credit search..until the credit market moves to a fairer system where credit search counts can be held against you for a long long time..
    Never argue with an idiot. Especially not this idiot because I'm always right anyway.
  • jakesuk
    jakesuk Posts: 226 Forumite
    I applied for a Halifax clarity card in branch last year and I was rejected. I bank with them and have a clean credit history.

    I appealed the decision and it was overturned.
  • techno12
    techno12 Posts: 734 Forumite
    Part of the Furniture 500 Posts Combo Breaker
    edited 17 May 2012 at 2:34AM
    I've just today been refused the Halifax Clarity credit card and I received the same letter pointing the finger at Experian.

    I'm dumbfounded as to why I've been refused, especially as my mortgage was with IF (part of Halifax) until a few years ago. I've only ever had one loan, and never missed any payments or anything on it or my mortgage. I've always paid the balance off in full each month on my credit card, apart from one time years ago when I forgot (I now have a direct debit set up to always pay the balance).

    I'm also on the electoral register, have had a contract mobile for 10 years, been at my current address for 6 yrs, and have £30k or so in savings.

    I only wanted the damn card to use when abroad a couple of times a year!

    Suffice to say I'll never deal with Halifax again (though I may try and appeal, but I'm going abroad in less than 2 weeks and need it by then).

    Just joined CreditExpert so we'll see, but even that is delayed by a couple of days while they 'do checks'.
  • ems46
    ems46 Posts: 10 Forumite
    Hi techno12, I completely understand your frustration at being refused the Clarity cc especially since you've banked with Halifax for many years.

    If like myself you applied online I definitely think it'd be worth your while writing them a letter as a loyal customer or even calling into a branch, if nothing else at least you gave it a go and judging by my experience and those of others posters, chances are the decision will be overturned.

    Good luck!
  • fozmcfc
    fozmcfc Posts: 3,098 Forumite
    Part of the Furniture Combo Breaker PPI Party Pooper Debt-free and Proud!
    I agree that it is worth appealing if you feel as though you shouldn't have any issue with getting a card.

    But what people don't seem to get, is that you have no right to a credit card, they do not have to give you one for whatever reason, even something as stupid like you applied for it on a Wednesday and they decide all applications received on a Wednesday are going to be refused.

    These companies can pick and choose who they want as customer, even if you are a perfect customer (or in many cases think you are), it doesn't mean you have a right to a card or they want to give you a card.

    Just like a shop can refuse to serve you if you have the money to pay for the item, just because they don't like the shoes you are wearing, they are entitled to choose who are their customers.

    If you feel like you are the perfect customer, just like you wouldn't go back into that shop, you take your custom elsewhere, as I have myself in the past.
  • techno12
    techno12 Posts: 734 Forumite
    Part of the Furniture 500 Posts Combo Breaker
    Aye it's frustrating. Just looked my score up on CreditExpert and it's 949 which is 'good' apparently.

    There's no record of my Barclaycard on there (I've had that for 20 years), but I guess not all lenders inform the credit rating agencies.

    I feel a bit better now, as I was beginning to think my score was 300 or something.
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