Refused Credit Twice, What Should I Look For?

DJBenson

I'm in a financial position whereby I am more comfortable than I've ever been and have money to move around to gain whatever little interest there is out there.

This calendar year, I've applied for what I consider to be a lot of accounts (current accounts 3xNationwide, Halifax, Lloyds, Coop, Norwich & Peterborough), an Amex gold card and a finance agreement with DFS.

In terms of current credit, I have a Barclaycard Platinum VISA on 0% (£2200), a mortgage, a personal loan (£4000), an Aqua CC (zero balance) and a couple of current accounts.

All the current accounts are either in credit (e.g. the Nationwide accounts) or used as a vehicle for a savings product (e.g. the 1st Direct accounts).

I've checked my statutory credit reports (2 of the 3 - still waiting for Experian to email me the link) and there is NOTHING untoward.

Most of the accounts I've applied for in the last couple of months doesn't seem to have left a mark on my account so it is with confusion that I've been declined for an Amex Cashback card and today a Santander 123 account (both institutions of whom I am already a customer of).

Could this be put down to me just not fitting the lenders criteria, is it the amount of credit I have at my disposal, the sheer amount of applications I've made, a combination?

It's funny because it's not the credit I am after - it's the benefits (e.g. the cashback, points or high rate of interest).

Have any of you other current account hoarders hit such issues?

SuperHan

What's your income and your current limits on the credit cards?

£6,200 *may* be considered too much current debt for the Amex? I can't imagine it being a huge problem for the current account though...

Also, are you on the electoral role at your current address... That could be the problem?

DJBenson

Bit more detail;

Income - £78000 (LTD Company Director)

Amex Gold - £1000/month (paid in full)
Aqua Balance £0/£750
Barclaycard Balance £2200 of £7700
Capital One £0/£4000 (forgot this one)

On electoral role since 2007 (when we moved in).

And I know the lenders don't take this into consideration, but the amount I have in savings in some of these accounts dwarfs the credit I have available.

Thrugelmir

Highly likely the amount of available credit to you already. As rules of responsible lending are coming into force.

So pick your credit cards wisely. Close those for which you have no need.

DJBenson

Mmmm.

Well I've requested Barclaycard reduce my limit from £7400 to £2500 (so just above my balance).

I'll just have to wait a couple of months, close the accounts whose deals are coming to the end and then see what happens.

As an aside, I wrote to Amex explaining my situation, I await their response. Not sure if I should send the same on to Santander too - nothing ventured...

sfax

Not sure why you were rejected for the first 1-2 but you've made 9 applications for credit in the last year and that's not good. More than 2 in any 6 month period can be negative. Check Experian.

DJBenson

Sorry the Santander product is the 123 CC not 123 current account (already got that).

Appreciate whilst on the face of it I've got a lot of credit, the reality is none of the Nationwide accounts have credit (refused the overdraft) but they still credit check you, and the others are low value. I've requested that CapitalOne reduce my limit too and as I said above, I'll just chill with the applications for a bit

Anyway, not a biggie - just a little miffed at being refused credit, it's only happened 1/2 times in my adult life and twice in two weeks has peeved me a bit

sfax

lol at 123! And is that 1/2 as in half the time? Just kidding. You've not got too much credit or too high utilisation. My total available credit is about £32k on credit cards and I also have an Amex Gold charge card. This position is never a problem for new credit cards. Must be something else going on

simplydevine05

You have too much available credit so need to get rid of a card or two. You have probably also done far too many applications in the last year. With regard to Santander, unless you bank with them you have little chance of getting the credit card as their lending policy is very strict.

CherlokHomes

Its nothing to do with Available credit IMO,I have 19k available and don't get turned down.

My money is on 9 credit searches.

MoneySaverLog

DJBenson wrote: »

Well I've requested Barclaycard reduce my limit from £7400 to £2500 (so just above my balance).

That in a perverse way could be the problem. A new creditor comes along and sees that the limit has been lowered, and they wonder why that would be the case. They don't know you lowered it, and not the creditor for some reason.