Application failed despite 'Excellent' credit rating

Ginger_Winner

I recently applied to switch my current account to a TSB account to take advantage of the £150 incentive before this offer closed.

After completing the application online I was then sent a letter telling me to go to a branch to verify my address which I did. I was then told that I failed their internal credit scoring system so cannot have the account.

My credit history is without fault, credit cards are paid in full every month and my mortgage record is 100%. I have no other debts. Noddle rates me as 'excellent' with a score of 94% and Experian rates me as 'excellent' with a score of 93%.

I have had no joy with getting an explanation from TSB other than that I have failed their credit check and that they can't tell me why for data protection reasons.

As it was just an application I feel like I don't have much of case for complaint but I thought I'd post on here in case anyone else has had a similar experience and managed to overcome it.

Does anyone know if there is any way I can find out why I have failed their credit check?

colsten

As you haven't sailed through the online checks, there is most likely a problem with your credit reference records. But that's just a guess.

There could be all sorts of reasons why your application failed. It could be because the address on your application is different from your address on your credit files or on the Electoral Roll, or because your credit file shows an association with someone TSB doesn't like, or because you have a history with Lloyds Banking Group that TSB doesn't like, or a number of other reasons.

grumbler

Most likely it was some inconsistency or discrepancy within the data they have from CRA(s).

You can try getting your credit files from all CRAs, checking them and appealing the decision with copies of the files enclosed.

Most banks don't say how to appeal, but you can have a look at Santander's booklet to get an idea.

colsten

Super link, grumbler, thank you. That Santander booklet gives us an amazing insight into the kinds of things that might be used in credit scoring. For example (my highlighting/use of colours):

Your application is compared to groups of similar customers who applied to us in the past, making it a fair and objective process. Using this method, we make reliable decisions which are more consistent than relying upon personal impressions alone.

Could information from the credit reference agency be the only reason for declining my application?

Possibly, but if this is the case, we will tell you. The information received from the credit reference agency is only one part of the decision-making process. Sometimes, there may be no detrimental information held about you at the agency but we still may not be able to accept an application simply because it does not meet all of our business criteria at the time.

pmduk

You've learned that the CRAs' credit ratings aren't worth the pixels used to exhibit them. If Noddle & Experian say you're such a wonderful credit risk it's surprising they're not lending you money themselves.