How do lenders decide in who to send applications for people to apply for their CC

excalibar

Say for instance Capital One...I never contacted them or knew they existed yet they sent me details/forms together with a reference number in how to apply..


Does this mean they know your credit file is decent enough for them to issue you at least a form/application for you to apply?


do they check if your on the electoral register before sending you their forms?


Also how do they decide on who to send forms to?

Fruit_and_Nut_Case

excalibar wrote: »

Say for instance Capital One...I never contacted them or knew they existed yet they sent me details/forms together with a reference number in how to apply..


Does this mean they know your credit file is decent enough for them to issue you at least a form/application for you to apply?


do they check if your on the electoral register before sending you their forms?


Also how do they decide on who to send forms to?

If you've never had any direct contact with them it means that you will never have given them permission to credit check you. Thus they will have no idea about your creditworthiness. Any snail-mail that you have received is likely to have been part of a scattergun mailshot.

maas

or you completed an application form for a different service (insurance etc) where you didn't untick the box saying "Please send my details on to other companies"

Star-Light

Am wondering same!!!

excalibar

Am sorry I don't understand? I thought many lenders send you invitations to apply for their credit card? like for example capital one and others, even though I never asked them to send me request..So I was just wondering how this works? for them to give a reference number to type in on-line on their site I assumed they somehow realized I was a decent candidate to apply.. Even though- how do they decide in how to send requests too?

Am guessing they do pre-credit checks? I had not applied for credit in 15 years...Am assuming my file has been clean now after I had defaults from 2001, so am guessing that credit rating agencies passed credit reports of consumers who's file has started again to lenders, who then view the consumers as potential canditates to start to build their rating again?

grumbler

My wife keeps receiving 'invites' from C1 'classic' and Vanquis despite having perfect history for her whole life and never applying for anything even close to this sub-prime rubbish in the past.

So, all your guesses are plain wrong.

excalibar

They wouldn't send request to people with defaults, CCJs, really low credit rating would they now? I never received these requests before in the last decade, so am guessing it's for people who's files the agencies have passed on lenders, whether that be of people who have top notch credit files or people who have no history because everything such as defaults, CCJs have been wiped off, so perhaps agencies see that and want to let lenders know these are the type of people they should requests too, and yes maybe to people who have top credit scores too.

grumbler

Agencies don't "pass" any files.
Lenders, theoretically, can check your files only on your explicit permission (that you could have given them in the past though).

eddddy

Hi excalibar

Cap One will have bought a list with your name and address on it.

It could well have been sold as a "List of people who are likely to be credit worthy" or similar.

You could have been added to the list because of your post code (i.e. you live in a prosperous area), because you once subscribed to an upmarket magazine (that prosperous people read), because you enquired about an upmarket product or service (which prosperous people typically buy), etc, etc, etc..

Typical response rates might be about 1% to 2% - i.e. they send out 10,000 invitations and get 100 to 200 applications, who they then credit check. (Leaving aside the legal issues, the cost of credit checking 10,000 people would probably be prohibitive.)

excalibar

Am not too sure I done any of those things, but could it have anything to do with my over-draft offered around the same time? as before I was not entitled to it..Could be a coincidence? in the olden days I use to get offers from the likes of Natwest, Barclays etc and other lenders, until my file went down hill..But only recently in the last 8 months its been happening again so I was just wondering how they go about inviting people to apply. Maybe when they credit files are checked from time to time and notice its clearer then last time-they decide to involve the likes of Capital One to contact consumers!


But you know what's also strange? my previous credit history was under the present name I have now, with my bank...Now Cap 1 is the first credit card lender that has me as my proper name