Application rejected - Halifax Clarity Card

clarabell1984

I have just applied for a Halifax Clarity Card for use when abroad on Honeymoon next year but it was rejected.

I already have 2 credit cards (personal spend and wedding spend both 0% on purchases) both of which don't have much on them (around £1000 each).

The only thing I can think of for being rejected is that i only just recently switched bank accounts from RBS (who i have been with for 15 years) to Halifax a couple of months ago.

Do you think this would affect their decision? or is it because of the credit I already have?

I checked my credit report on Noddle this morning and it all appeared fine, no missed payments and all green lights!

Also, will this now go against my credit rating?

I have never been rejected credit before

Butti

That might be it because it is a recent credit change. It could be if you have high limits without much spend (ie. an opportunity to have a rush of blood to the head and go on a wild spending spree!)

Alternatively they may think they are not going to make much money out of you because you are good at managing your money.

You could get a copy of your credit report to check it and if your honeymoon is not till the summer maybe apply closer to the time.

Cycrow

it might have effected it, as banks like to see stability.
theres no real way to tell for sure.

it might be that you have too much credit already, how much credit do you have available compared to your salary?

Rejected credit doesn't show on your credit file, only the search will show, not the outcome.

a single search wont effect it much at all, its only a problem when you have lots of search close together

YorkshireBoy

clarabell1984 wrote: »

...i only just recently switched bank accounts from RBS (who i have been with for 15 years) to Halifax a couple of months ago.

Do you think this would affect their decision?

Unlikely, but it could have tipped the balance if you were otherwise borderline.

or is it because of the credit I already have?

Impossible to answer, since you haven't said how much "credit" (available, ie total limits) you have...only that you have around £2K debt across two existing cards.

I checked my credit report on Noddle this morning and it all appeared fine, no missed payments and all green lights!

Hopefully Experian and Equifax show the same. Why not find out?

Also, will this now go against my credit rating?

One search won't affect your "credit rating"...greatly!

About you...

1. On electoral roll?
2. Income?
3. Available credit?
4. Total debt?
5. Long time at address?
6. Long time in job?
7. Financially associated with anyone? (if yes, what's their credit file look like?)
8. Who's the current credit card debt with?

clarabell1984

About you...

1. On electoral roll? Yes
2. Income? Below average
3. Available credit? £6800
4. Total debt? £2k but money in savings to pay
5. Long time at address? Just over 2 years
6. Long time in job? Just short of 2 years
7. Financially associated with anyone? (if yes, what's their credit file look like?) his credit was one last we checked
8. Who's the current credit card debt with? Santander and M&S

YorkshireBoy

clarabell1984 wrote: »

7. Financially associated with anyone? (if yes, what's their credit file look like?) his credit was one last we checked

You mean 1 out of 5 with Noddle?

Forget the number...what about the data? Late payments, CCJs, defaults, etc? And have you become financially associated since you took out the other cards?

clarabell1984

Sorry that was supposed to say his credit was ok last time we checked, no late payments or bad debt, tht was probably about 6 months ago and he hasn't checked his recently at all but We have been financially linked for years since we got our mortgage together

PeacefulWaters

Once you've used your current account effectively for six months or more you may well find a different decision if you apply again.

clarabell1984

I've just signed up to experian and it shows I have a good score of 948, 6 positive factors and 1 negative (You have recently opened 1 or more new credit accountsin the last 6 months)

I didn't realise that I only got my Santander credit card in August, i thought it was much earlier in the year (wedding brain!)

Would the switch to Halifax have counted as a 'credit account' as apart from that it's only the Santander card thats been opened in the last 6 months

bonjan

Keep "Show personalised sales messages" set to "Yes" in the details of your online banking account.
Wait between 6 and 12 months so your internal score with Halifax is good enough, when that happens you should see an offer for a credit card when you log in to your online account.
That's when you want to apply for the Clarity, even if the offer is about a different Halifax credit card, that's a good indication that they'll probably issue a Clarity too if you apply for it then.

Alternatively apply by phone: if you're unlikely to get it they will tell you so and ask if you still want to proceed with the application, at which point you should not proceed (don't expect any explanation of why though, just wait and try again in the future).

NPHammer

From many peoples accounts Halifax Clarity seems to have one of the toughest acceptance criterias of any mainstream card.

From your info not much seems amiss with your file - you just don't fit the profile Halifax want for this card. You'll likely have plenty of success elsewhere if the info you have provided is correct - but there isn't much that is comparable for use abroad to the Clarity.