Halifax Rejection

sva

Hello all

I currently have 0% purchases card with Tesco, but it's due to run out so I though I'd take a chance with the next on Martins best list, the Halifax. However I've just been rejected, checked my credit file and there are no problems.

What's the best thing to do next? Apply for the next on the list, how long should I wait? Do I cancel my current Tesco one before applying?

izools

You first of all need to understand why you were rejected. Doubtful Halifax will tell you a decent reason.

How much do you owe across all lines of credit?
How much do your limits add up to across all lines of credit?
How much do you earn in a year?
How old is your oldest account?
How old is your newest account?
How many credit searches have been performed against you in the last six months?

Maestro.

Sometimes people get rejected for no particular reason. I would use the eligibility pre checker on here to see what it thinks of you, then apply for something else that looks more suitable. Do this after making sure you pass over some of izools points, i.e., if you earn 20K in a year and have more than that in debt.

sva

izools wrote: »

You first of all need to understand why you were rejected. Doubtful Halifax will tell you a decent reason.

How much do you owe across all lines of credit? 0 on card but I have a £7000 loan.
How much do your limits add up to across all lines of credit? £9500 (including the above loan)
How much do you earn in a year? £25,000
How old is your oldest account? bank? 12 yrs.
How old is your newest account? See above, I've only the one.
How many credit searches have been performed against you in the last six months? 1. 2 if you include the Halifax I was rejected for

I did the eligibility checker a few months ago and it was I have a very good chance of being accepted for one of the cards.

izools

I see. From what you've put I can think perhaps that having the potential to borrow £9500 on credit cards on top of a £7,000 loan would leave you in more debt than anyone on a £25,000 salary could easily manage.

EDIT: Oh wait, your credit limits only add up to £2,500? Scrap this then.

I would suggest cutting your limits before applying elsewhere.

Oh, and when I said newest account I mean any type of account - bank, credit card, loan, mobile phone, utility, etc.

If there are any accounts on your credit file opened in the last 6~12 months this can put potential lenders off as the account won't have been open long enough for you to have proven you are capable of managing it correctly on a long term basis.

Hope this helps :beer:

EDIT: Having re-read your reply properly seeing that you only have £2,500 total credit limits I honestly can't see why you've been declined other than if you have opened any accounts in the last six months.

If not, I'd simply try elsewhere, no need to wait

sva

izools wrote: »

I see. From what you've put I can think perhaps that having the potential to borrow £9500 on credit cards on top of a £7,000 loan would leave you in more debt than anyone on a £25,000 salary could easily manage.

EDIT: Oh wait, your credit limits only add up to £2,500? Scrap this then.

I would suggest cutting your limits before applying elsewhere.

Oh, and when I said newest account I mean any type of account - bank, credit card, loan, mobile phone, utility, etc.

If there are any accounts on your credit file opened in the last 6~12 months this can put potential lenders off as the account won't have been open long enough for you to have proven you are capable of managing it correctly on a long term basis.

Hope this helps :beer:

EDIT: Having re-read your reply properly seeing that you only have £2,500 total credit limits I honestly can't see why you've been declined other than if you have opened any accounts in the last six months.

If not, I'd simply try elsewhere, no need to wait

The only new account in the last 6 months would be the loan, which was started in June.

izools

sva wrote: »

The only new account in the last 6 months would be the loan, which was started in June.

Ooooooh blimey.

That'll be why. Loans are considered in some scoring models to be much bigger commitments than credit cards therefore a lot of lenders like to see a solid amount of repayment history before considering offering further lines of credit.

Wait until it's 12+ months old.

sva

izools wrote: »

Ooooooh blimey.

That'll be why. Loans are considered in some scoring models to be much bigger commitments than credit cards therefore a lot of lenders like to see a solid amount of repayment history before considering offering further lines of credit.

Wait until it's 12+ months old.

Ohhh, right. Brilliant. Thanks for your help