Are under 30s automatically rejected by the big banks these days?

RobG24

Hi,

Going away on holiday to Peru next month and read that the Halifax Clarity card was the card to get if you need one abroad.

Anyway, filled out application online, but the email response was just that I was rejected as they felt I might not be able to afford the repayments.

Nothing odd you might think, but I have 1 mortgage, 1 personal loan and 1 platinum credit card. I've never missed a payment, have enough money left over at the end of each month to put in savings (well I did, but some of it's gone on the holiday), my salary flirts with the higher rate tax bracket and I live in the same estate as some of the local Premiership footballers.

I question if it is just a "demographics" thing with the big banks (i.e. I am under 30), rather than anything to do with my ablity to pay, especially as I had the same problem when re-financing my personal loan. After arguing with Tesco on the phone and going through detailed maths with them about how much (several hundred pounds) I'd have to bank after all expenditure including the loan they refused, the guy still said "it was my interpretation of what was needed to live on" and still refused.
Yet one application to Zopa (the online leading startup) and they were like, "yes, of course we can lean you the money".

I'd like to know where my £1000/month taxes are going to fund this "bail-out" of the big banks if I never seem to be able to get credit from them?

Stick with people like Zopa if you are under 30. Halifax and Tesco and the like are a waste of space!

Rob

matttye

Have you checked your credit reports to make sure there's no incorrect information on them?

Perhaps they think you already have enough credit available and don't think you can afford any more. They will look at the total amount available, not just your current balances.

Moneysaverchris

RobG24 wrote: »

Hi,

Going away on holiday to Peru next month and read that the Halifax Clarity card was the card to get if you need one abroad.

Anyway, filled out application online, but the email response was just that I was rejected as they felt I might not be able to afford the repayments.

Nothing odd you might think, but I have 1 mortgage, 1 personal loan and 1 platinum credit card. I've never missed a payment, have enough money left over at the end of each month to put in savings (well I did, but some of it's gone on the holiday), my salary flirts with the higher rate tax bracket and I live in the same estate as some of the local Premiership footballers.

I question if it is just a "demographics" thing with the big banks (i.e. I am under 30), rather than anything to do with my ablity to pay, especially as I had the same problem when re-financing my personal loan. After arguing with Tesco on the phone and going through detailed maths with them about how much (several hundred pounds) I'd have to bank after all expenditure including the loan they refused, the guy still said "it was my interpretation of what was needed to live on" and still refused.
Yet one application to Zopa (the online leading startup) and they were like, "yes, of course we can lean you the money".

I'd like to know where my £1000/month taxes are going to fund this "bail-out" of the big banks if I never seem to be able to get credit from them?

Stick with people like Zopa if you are under 30. Halifax and Tesco and the like are a waste of space!

Rob

With your available credit and your current credit, they obviously don't think you can afford it?

Whats your salary and outstanding balances/limits?

Dave_the_Ginger_Cat

Nothing wrong with being under 30, excepting that many of are envious.

The issue seems to be the perception of your affordability here - I think the Tesco comment was fairly clear

In parallel with receiving commitments from the govenement, each of the banks has sought to work hard on its responsible lending agenda, and many have tightened up their lending criteria. Do not assume that just because you have been turned down they are not lending. And just because you pay tax, it does not entitle you to receive lending that they do not feel is appropriate. If Zopa are willing to take the risk, good luck to them.

Until then there are plenty of tax funded facilities in the country which I am sure you can and do make good use of

speedy8644

I have to disagree where by being under 30 results in you getting rejected. I applied for a Halifax credit card about six months ago was accepted straightaway with a £3500 credit limit. I am 26 years of age, with an average salary and with no other debt. I think like all credit applications the major factor deciding whether you are accepted is your credit score rather than such variables as age.

Dean2013

speedy8644 wrote: »

I have to disagree where by being under 30 results in you getting rejected. I applied for a Halifax credit card about six months ago was accepted straightaway with a £3500 credit limit. I am 26 years of age, with an average salary and with no other debt. I think like all credit applications the major factor deciding whether you are accepted is your credit score rather than such variables as age.

I also know somebody under 30 that got accepted by Halifax for a CC. 3 months ago, £3000 limit.

guesswho2000

RobG24 wrote: »

Stick with people like Zopa if you are under 30. Halifax and Tesco and the like are a waste of space!

I wouldn't say that, I'm only just 27 and hold cards from both Tesco and Halifax.

zerog

I am 24 and I have 3 credit cards and an Amex charge, as well as 2 overdrafts. Halifax rejected me though probably because I find it difficult to keep any significant balance with them.

callum9999

I've had the Clarity card since I was 19 and Tesco card since I was 20.

And no, the £10 you contributed towards the bank bailout doesn't afford you special treatment from them. As you seem annoyed they got bailed out, perhaps you should be happy they are now being more selective about who they lend to?

opinions4u

Age is a factor in credit scoring systems if you're young or old.

But once you're past 25 and remain of working age I wouldn't expect there to be any impact.

I'd like to know where my £1000/month taxes are going to fund this "bail-out" of the big banks if I never seem to be able to get credit from them?

You've not paid penny. They printed the extra money. Another shilling on the share price and it could all be repaid too.

Are you really stupid enough to think that every taxpayer should automatically get a credit card?

Stick with people like Zopa if you are under 30. Halifax and Tesco and the like are a waste of space!

Are they any good for withdrawing Peruvian currency in Lima?

RobG24

Moneysaverchris wrote: »

With your available credit and your current credit, they obviously don't think you can afford it?

Whats your salary and outstanding balances/limits?

Salary = Just under £40,000
Mortgage = About £100,000 outstanding
Personal Loan = About £9000 outstanding
Credit Card = £1000 limit, £60 outstanding from home insurance last month.

Also, in reply to another reply, I have considered checking my credit report, but that still doesn't answer why it is always the established banks that reject and Zopa didn't? Also, using Moneysupermarkets "would you been accepted" tool all was good.

Anyway, ironically I don't actually need the credit. Just wanted to save on the fees while abroad.

Finally in reply to the response that said that just because I pay tax doesn't mean I'm entitled to credit. Yes, that is true. But as I pay about £12,000 a year in tax, I am entitled to ask, um, no credit as I'm a "risk" and George will soon want 40%? Where (text removed by Forum Team) is my money going?