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

RobG24

opinions4u wrote: »

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

No, I'm not saying every taxpayer should automatically get a credit card. I'm asking how is it reasonable (given the details I have given) about my finances, it is even possible to consider me a credit risk. I've made no missed payments and I'm not exactly on minimum wage.

Hence the question: is it because of age, marital status or something?

Given the finance logic I'd have to assume that those with credit cards with £3500 limits would have to be on £100,000 salaries or something.

Lagoon

I have two credit cards. I got one at 20 or 21, and the other at 25. Relatively high limits.

As others have said, it's not age.

callum9999

RobG24 wrote: »

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 is my money going?

Then get a debit card from Norwich and Peterborough.

It's not "always" the "established banks" rejecting people (how would they be "established" if they didn't have large numbers of customers!), applying for a loan is completely different to applying for a credit card and Zopa don't lend out their own money.

Your money is paying for roads, schools, libraries, hospitals, police etc. etc. Contrary to popular belief it isn't all being funnelled into banks. And for the second time, paying large amounts of tax doesn't entitle you to credit from Halifax or Tesco - neither is it remotely relevant.

callum9999

RobG24 wrote: »

No, I'm not saying every taxpayer should automatically get a credit card. I'm asking how is it reasonable (given the details I have given) about my finances, it is even possible to consider me a credit risk. I've made no missed payments and I'm not exactly on minimum wage.

Hence the question: is it because of age, marital status or something?

Given the finance logic I'd have to assume that those with credit cards with £3500 limits would have to be on £100,000 salaries or something.

No, those with credit cards have worked on getting a decent credit rating... I built up a history with Halifax THEN applied for, and received, a Clarity card. I built up a history from multiple sub-prime credit cards THEN applied for, and received, the Tesco card.

It's not because of anything in particular. Maybe you don't have enough credit history. Maybe they think you have too much credit outstanding already (rant all you want about how you earn £40k, how are you going to pay off that £100k mortgage, £9k loan and £1k credit card if you lose the job?). It could be a multitude of reasons all the way down to they just didn't want to give a credit card to someone with your profile that day.

opinions4u

RobG24 wrote: »

No, I'm not saying every taxpayer should automatically get a credit card.

It was very much implied in your post.

I'm asking how is it reasonable (given the details I have given) about my finances, it is even possible to consider me a credit risk.

Everybody is a credit risk to some degree. It's exceptionally arrogant to assume you're not. The question for the lender is who is the optimal customer to lend funds to - maximising income and minimising bad debt.

If your income stopped, how would you repay your mortgage, chunky loan and credit card?

If you'd prioritise your mortgage, what likelihood have they got of getting the credit card debt back? If you sold your home would there be enough equity to clear other debts?

I've made no missed payments and I'm not exactly on minimum wage.

Income isn't the be all and end all. Indeed, I have seen many on six figure salaries borrow and default.

As your income is significantly above average for a younger applicant, and your mortgage relatively small compared to income, an underwriter would be thinking about why you keep needing loans and cards. Is the debt increasing? Why no savings (if you save with the card issuer)?

High disposable income but new credit needed?

Hence the question: is it because of age, marital status or something?

Stability is the main factor in credit scoring systems.

Time at address.
Time in job.
Income stability.
Relationship with the lender (Halifax weight their scoring systems towards existing customers).
Age (to answer your primary question again) with 21 and 25 being significant milestones.

From what you've said you have a lot of things going for a credit application.

But that doesn't guarantee credit. Especially if you're not an existing customer.

meer53

Living on the same estate as Premiership footballers doesn't come into any lending decisions. From what the Tesco guy said, it sounds as though you might have underestimated your outgoings. I make lending decisions for credit cards and loans and can always tell when someone is being a bit economical with the truth to inflate their disposable income. Not saying that you did this OP, but as Tesco and Halifax have declined you, there's something that doesn't add up.

RobG24

opinions4u wrote: »

Everybody is a credit risk to some degree. It's exceptionally arrogant to assume you're not. The question for the lender is who is the optimal customer to lend funds to - maximising income and minimising bad debt.

If your income stopped, how would you repay your mortgage, chunky loan and credit card?

OK, this is the last I'm going to say anything on the subject. As we are just going back and forth and the focus seems to be about my "arrogance", rather than a debate about gaining credit.

I totally agree with you that everybody is a credit risk to some degree and I don't assume I'm not. But we are talking about a credit card not a loan for a flashy sofa. They had every right to set a reasonable credit limit which I assumed would be below the £3500 quoted in the thread. Instead they've decided I'm such a high risk that they can't even offer a limit of £1. And given the facts I've given (which I was asked to give), I question if that's reasonable given that this will show up on my credit file. It's like "oh, cheers!".

Yes, there is the question about job loss, but that applies to everybody with credit and that situation hasn't stopped everybody else saying "nope, under 30 and got a card, just you!"
And the question about the underwriter wondering "more credit?" Wonder no more, I had to give my phone number in the application. They are free to ring me to clarify questions, just like a bank manager from years ago would have done. But they never do.

To answer a couple of questions about credit history. I have a 10 year credit history with loans, cards and mortgage and Halifax are my current mortgage provider so they should know my payment history.
Also, I didn't apply to Tesco for a card, that was an example for a loan a while ago when I ended up going with Zopa. To answer the questions about customers underestimating outgoings. Again, I agree, which as I said I went into detailed maths with Tesco. I.e. Fuel costs, Food cost, Util costs, Insurance costs, All credit costs (including the loan they wanted to refuse) and at the end of it all they still said "it was my interpretation". I prefer to call it my "accounts".

Finally I'm getting a bit peeved off with being described as a stupid arrogant credit junkie who should think themselves lucky. I know exactly what it is like to come from humble beginnings who was told would never amount to anything. I've never received a handout and if I need financing I either save or get credit.
This is in contrast to the champagne drinking, "contractual obligation" bonus bankers who did receive a handout!

I would like more of my taxes to pay for schools and hospitals.

Anyway, two questions answered: 1. Are under 30s automatically rejected by the big banks these days? Based on the thread: No.
2. Should I post on the MSE Forums again: No.

matttye

RobG24 wrote: »

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 is my money going?

Zopa might have lower standards than mainstream banks.

You should check your credit files before making any application. If there's incorrect information on your file, you need to remedy that as it could cause a rejection.

Have a look at your files now and make sure nothing is amiss. There could be defaults, CCJ's and all sorts in your name that shouldn't be on there!

bigadaj

Halifax could, of course, have decided that you will simply not be a profitable client.

callum9999

RobG24 wrote: »

OK, this is the last I'm going to say anything on the subject. As we are just going back and forth and the focus seems to be about my "arrogance", rather than a debate about gaining credit.

I totally agree with you that everybody is a credit risk to some degree and I don't assume I'm not. But we are talking about a credit card not a loan for a flashy sofa. They had every right to set a reasonable credit limit which I assumed would be below the £3500 quoted in the thread. Instead they've decided I'm such a high risk that they can't even offer a limit of £1. And given the facts I've given (which I was asked to give), I question if that's reasonable given that this will show up on my credit file. It's like "oh, cheers!".

Yes, there is the question about job loss, but that applies to everybody with credit and that situation hasn't stopped everybody else saying "nope, under 30 and got a card, just you!"
And the question about the underwriter wondering "more credit?" Wonder no more, I had to give my phone number in the application. They are free to ring me to clarify questions, just like a bank manager from years ago would have done. But they never do.

To answer a couple of questions about credit history. I have a 10 year credit history with loans, cards and mortgage and Halifax are my current mortgage provider so they should know my payment history.
Also, I didn't apply to Tesco for a card, that was an example for a loan a while ago when I ended up going with Zopa. To answer the questions about customers underestimating outgoings. Again, I agree, which as I said I went into detailed maths with Tesco. I.e. Fuel costs, Food cost, Util costs, Insurance costs, All credit costs (including the loan they wanted to refuse) and at the end of it all they still said "it was my interpretation". I prefer to call it my "accounts".

Finally I'm getting a bit peeved off with being described as a stupid arrogant credit junkie who should think themselves lucky. I know exactly what it is like to come from humble beginnings who was told would never amount to anything. I've never received a handout and if I need financing I either save or get credit.
This is in contrast to the champagne drinking, "contractual obligation" bonus bankers who did receive a handout!

I would like more of my taxes to pay for schools and hospitals.

Anyway, two questions answered: 1. Are under 30s automatically rejected by the big banks these days? Based on the thread: No.
2. Should I post on the MSE Forums again: No.

Look through other similar threads on these forums. Anyone who has politely and reasonably queried why they were possibly rejected have been given polite, reasonable responses.

People who have just come here to rant about how evil the banks are or how their tax money should mean they get special treatment etc. etc. get bluntly corrected. You will notice however that all your questions have still been answered - by people who aren't paid a penny to do so. Feel free not to post here again though - I doubt it will be a major loss.