Declined a credit card

Buzybee21

HI
Can someone explain why my own Bank would decline my application for a credit card? The eligibility checker gave me a 70% chance approval rate. I have been with them years I rarely use my overdraft and have money in my savings account.
I have 1 credit card as I didn't pay the full amount on my first use in January this year so they reduced my credit limit from £1000 TO £500. I thought my bank would give me a credit card with a higher limit. :mad::mad:
As far as Im aware my credit score is fair with 9 positives and 1 negative being the low limit credit card. Will this affect my credit score which I have spent all year building.

[Deleted User]

Your credit score is entirely irrelevant. It's not used or seen by lenders.

What appears on your credit files? Your low limit suggests a thin or poor file, hence the rejection from a mainstream lender.

Demonstrate sensible use of your existing card for a few months, the try again with a suitable lender.

Dobbibill

Your own bank may decline you for any number of reasons.

What do your bank know about you?

You say you rarely use your overdraft, but admit you do use it - so could this lead them to believe you are unable to budget monthly.
Stay out of the overdraft for a while.

How long have you had savings with them? Is this recent or have you been building this up for a considerable time?
What other data is available on your credit reports? They will exchange information with the CRAs regularly.

Good advice from zx81, use the credit card you have sensibly and reapply in a few months.

Your score is irrelevant as the CRAs do not share that with lenders. Lenders will score you based on the information they get from the CRAs, along with existing account activity and anything you tell them on the application.

It will be worth checking the data on your credit reports, ensure everything is accurate and that you are not financially linked to anyone you shouldn't be.
Check all 3 - MSE Credit Club, Clearscore & Noddle - free.

WillyWonga

Dont think your own bank will give you preference..... loyalty means nothing anywhere now. As mentioned your low limit you were initially given shows a bit of caution somewhere. Check your free credit files, not for the score (useless) but for any skeletons hidden - check on voters roll, not linked to a partner bringing your score down etc etc

Me personally I would only go for a card 90% or above as 7 in 10 mean 3 out of 10 wont get it.

Go for a credit builder card..... high interest but you wont be paying any interest as say spend £100 petrol on it a month (what you would normally spend) then clear the £100 off when the bill comes in.

Good luck.

DCFC79

Don't let it get to you, its just a decline.

bigadaj

DCFC79 wrote: »

Don't let it get to you, its just a decline.

Though in terms of your credit file its actually just a search.

Anthorn

Buzybee21 wrote: »

HI
Can someone explain why my own Bank would decline my application for a credit card? The eligibility checker gave me a 70% chance approval rate. I have been with them years I rarely use my overdraft and have money in my savings account.
I have 1 credit card as I didn't pay the full amount on my first use in January this year so they reduced my credit limit from £1000 TO £500. I thought my bank would give me a credit card with a higher limit. :mad::mad:
As far as Im aware my credit score is fair with 9 positives and 1 negative being the low limit credit card. Will this affect my credit score which I have spent all year building.

News to me: In my experience not paying the full statement balance is the best way to get the limit increased, not reduced. They have more likely decided that you are a greater risk than they at first decided. Depends on what you used the card for. For example if you used the card for gambling, even the National Lottery, that's the best way to get your limit reduced.

Not at all unusual that a bank will not provide a credit card for long-standing customers. Looking bank into the mists of time almost to the present I was one of the original customers of National Girobank which became Girobank plc and then absorbed by Alliance and Leicester and then by Santander. In all that time they would not provide me with a credit card even though throughout I had Access, Barclaycard, American Express and Diners Club. I think that some idiot makes an entry on the bank records which denies a credit card and can never be revoked - maybe a coffee stain.

So anyway, there's plenty more banks in the ocean. If you are dissatisfied with your bank, switch!

Ben8282

You have one credit card. You had a low initial limit which appears to have been reduced by 50% almost as soon as you got it. (Your reason that this limit reduction occurred as a result of your failure to make full repayment of the balance of your first statement is rather strange and somewhat unusual).
Perhaps the answer to why your bank won't give you a card can be found in your credit files as something tells me that everything is not quite as it should be.

jonesMUFCforever

OP said in initial [post he was ''building '' up his credit score all year which to me suggests past misdemeanors.