Read this if you've been refused a credit card

ILW

"Good" customers do not tend to earn the card provider much money. They may reject purely because you do not look profitable.

Maestro.

I may well appeal a rejection for a card with my local bank after reading this thread. I applied over the phone and was almost immediately rejected. the credit search obviously rejected me automatically for some reason, but I have banked with them for over 5 years and have what I would say is a pretty good history with them. They gave me an overdraft no questions asked and I briefly used it during family emergency and then never used it since, and there should not be any more than one or two credit searches on my file in the last few months.

ems46

I see my thread has stirred up quite a debate!

My credit rating with Experian is also rated 'Good' and I sent Halifax evidence of my salary and also my savings to prove I am financially secure and will be able to make repayments on the cc, so I do not think it is a given that banks automatically reject seemingly ideal customers because they won't make money off them.

Obviously banks want to make a return on their customers, that's how any company operates, but if this was exclusively the case then the evidence I sent Halifax with my appeal would have resulted in a second rejection letter instead of an apology and acceptance.

Banks have targets to meet like every business and it's entirely possible that the application results will vary according to the member of staff assessing the application, how many applications they have already approved that day etc.

Ultimately if you've applied online, or even in branch/over the phone, and been rejected then it's definitely worth your while sending a (polite!) letter with evidence of your financial situation because the search will already be on your credit profile so why not make good use of it?

I haven't received my cc yet so maybe it will arrive with a ridiculous APR and a limit of £100!

jakesuk

Maestro. wrote: »

I may well appeal a rejection for a card with my local bank after reading this thread. I applied over the phone and was almost immediately rejected. the credit search obviously rejected me automatically for some reason, but I have banked with them for over 5 years and have what I would say is a pretty good history with them. They gave me an overdraft no questions asked and I briefly used it during family emergency and then never used it since, and there should not be any more than one or two credit searches on my file in the last few months.

Use of overdrafts can be seen as desperate. I don't want to deter you from appealing but the use of an overdraft may well have counted against you.

Maestro.

jakesuk wrote: »

Use of overdrafts can be seen as desperate. I don't want to deter you from appealing but the use of an overdraft may well have counted against you.

I agree, and the bank would in all honesty be right to think that. When your parents decide they need the last of the money you owe them (£500) right before Christmas, it certainly can make someone desperate! I got out of it though in only a matter of a few months, and am now in very good financial standing, I guess it will take a while longer for the bank to see this though or maybe my financial history with them internally will never repair. Knowing Clydesdale as they seem to be permanently stuck in the 1990s this is probably quite true.