Rejected for an Isme account, and no idea why...

Kirsty_Lou

I applied for an Isme account today, as I intended to buy a new laptop using a TopCashback new customer offer. Annoyingly I've been rejected, and I'm a little bit shocked to be honest. I have two other accounts with the shop direct group, both of which have been extremely well managed. I'm on the electoral roll, I've been at my address for four years, and all of my other bills and accounts are in order. I applied for a new bank account last week, this is the only recent search that should be on my file. Maybe this is the reason I've been rejected? Anyone have any ideas, because it makes no sense to me at all...

matttye

What's your available credit, used credit and salary?

Kirsty_Lou

About £5k with Very (not asked for), £200 used.
£2.5k with Littlewoods, £0 used and in the process of closing it.
£500 capital one credit card, £150 used, paid off in full every month.
I have a £1400 interest free overdraft facility with Barclays, which isn't used.
I'm a student nurse, so my income is a combination of student loan, NHS Bursary, and my part time earnings. I work quite a lot though so my total income was around £15k last year.

matttye

£9,400 available credit with an annual salary of £15k is 63% of your annual salary - that might be why.

I suspect if you'd waited until Littlewoods was closed, you might have been able to open the Isme account.

Kirsty_Lou

Ahh... so they think that potentially I could have a mad spending spree and burn through £9k? Even though the credit I do have has been well managed historically? I think it would be a good idea to contact Very aswell, and have my credit limit lowered to something more appropriate.

matttye

Kirsty_Lou wrote: »

Ahh... so they think that potentially I could have a mad spending spree and burn through £9k? Even though the credit I do have has been well managed historically? I think it would be a good idea to contact Very aswell, and have my credit limit lowered to something more appropriate.

Exactly!

That's why debt consolidation loans are quite high risk to lenders, because borrowers will have, say, £20k of debt and then want to borrow another £20k. The lender has no proof that the borrower is going to use the £20k to pay off the existing debt. They could blow it all and end up with £40k of debt.

Sounds like a good idea - if you have a credit limit that you're never going to get anywhere near to, reduce it.

Kirsty_Lou

So what would be an appropriate amount of credit to have access to as a percentage of someone's salary?

GingerBob_3

Did Isme ask for your salary? Cheeky sods if they did!

Kirsty_Lou

GingerBob wrote: »

Did Isme ask for your salary? Cheeky sods if they did!

No, they didn't. I was just wondering why they had rejected me, given that I manage my money well. It looks like I just have access to too much credit already.

GingerBob_3

Kirsty_Lou wrote: »

No, they didn't. I was just wondering why they had rejected me, given that I manage my money well. It looks like I just have access to too much credit already.

So the salary to credit ratio is nothing to do with it. I didn't think the likes of Isme would ask about salary. Not sure then. Could be any number of perverse reasons. Tell them you'll be going elsewhere, and to take your name off their mailing list. I know it doesn't help with the laptop, but maybe there are other deals about?

Kirsty_Lou

GingerBob wrote: »

So the salary to credit ratio is nothing to do with it. I didn't think the likes of Isme would ask about salary. Not sure then. Could be any number of perverse reasons. Tell them you'll be going elsewhere, and to take your name off their mailing list. I know it doesn't help with the laptop, but maybe there are other deals about?

Oh yes, I have other options, I was just swayed by the idea of £50 cashback :-) I will ring them tomorrow and enquire about why I was rejected, just out of interest.