Credit card application rejected...confused!

LustForLeith

Hi,

I tried to apply for a Halifax credit card on Sunday. Noticed an offer that with Christmas coming up appealed to me.

The application came back declined which confused me. I only have one credit card and that's almost paid off. Been at my address for eight years and my job for eleven. Living within my means!

I got a credit report and it came back with a score of 999 out of 999! I'm confused! It's not as if Halifax offered me saying 20 months instead of 37 months interest free,MIT was a straight forward decline!

I might appeal this decision but not sure if it's worth it. Scared that if I apply for another credit card iw it get it and it will affect my rating even although I thought I was in a position to get one!

Any advice on high at I can perhaps do or why it's been rejected please?

Thanks.

CalumHeath

This exacty why credit scores are completely irrelevant.

Lenders do not see your credit score and those that give credit scores (Noddle, Experian, and others) do not make lending decisions.

Lenders do, however, see your credit history which is (should be?) an accurate record of credit accounts and how you managed them, and applications for credit.

Your eligibility for any credit is not solely based on one factor (and certainly not a score or rating); any combination of the following factors might be taken into consideration by a potential lender:

- amount of existing debt
- amount of existing available credit
- history of settled accounts
- history of incurring defaults
- number of recent applications for credit
- age
- whether single, married, widowed, separated or divorced
- whether home-owner, tenant or living with parents
- whether you're on the electoral register
- current employment status
- length of time with current employer
- salary

This is by no means an exhaustive list and how each credit-provider assesses you is different; some companies may not consider many of these factors (Payday lenders), some may consider even more (mainstream lenders, mortgage providers). Certain factors may not carry any weight and some might dictate the decision-making process completely - you'll never know.

Ultimately, it's up to each company whether they want to provide credit facilities and on what terms. They have no obligation to lend to anyone nor explain or justify their lending criteria at any time. It's not based on a score or rating.

darkidoe

Go ahead an appeal the rejection. Online applications are abit of a hit and miss. I have been rejected myself a month ago and have been successful in appealing the decision. There has be quite a few successful Halifax appeals on this forum. Definitely worth saving a credit search by appealing. Read this for some advice on how to go about writing up the appeal letter: https://forums.moneysavingexpert.com/discussion/comment/20529049#Comment_20529049

user1168934

I got rejected for the same card. My credit history is excellent too. Try elsewhere.

smdabs

Its important to keep in mind that to a financial institution, a customer having had only one credit card ever is not very much information to allow them to assess whether you would be a profitable/trust worthy customer or not.

Some banks are renowned for having higher criteria to meet to obtain credit thus why you have special banks offering credit cards for people with lower credit ratings.

The number on your credit rating is pointless however your credit report is what matters. They want to see that you have had credit before and you can be relied on to pay it back (preferably over an amount of time, not full balance every month... they like it when you end up paying them interest...cause obviously they aren't earning enough profit )

You may not have had any defaults, but you haven't got much history to offer them either like numerous credits cards/overdrafts/a mortgage etc. Which is a large factor of their decision as well as age, employment, home owner, marital status etc.

Therefore, it is very much their perogative to decline an application if they don't feel that it meets their higher/strict critera.

There would be no harm in appealing however it's completely up to you as to whether you want to potentially waste that amount of time as it could potentially take quite a while ('up to' 8 weeks if they log the appeal as a complaint etc etc)