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Pre approved HERE but then denied credit

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Comments

  • [Deleted User]
    [Deleted User] Posts: 35,242 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    But again, it's confidential.

    And risk scoring isn't as simple or or linear as people think. Not being on the ER may be a reason for decline, unless you're under 21, when it's not seen as a key risk criteria.

    Or you have one default , which wouldn't normally be a reason for decline, but you're also a car mechanic which is one of the lender's highest risk occupations. However, if you were a homeowner, we'll overlook that, unless you're under 25, where we won't.

    Few decisions would be simple enough to explain in criteria which aren't confidential, and in today's market, customers aren't prepared to pay for that sort of personalised service anyway. Particularly as the customers are paying for non customers.

    I get that it's frustrating, but there is no simple answer.
  • But again, it's confidential.

    And risk scoring isn't as simple or or linear as people think. Not being on the ER may be a reason for decline, unless you're under 21, when it's not seen as a key risk criteria.

    Or you have one default , which wouldn't normally be a reason for decline, but you're also a car mechanic which is one of the lender's highest risk occupations. However, if you were a homeowner, we'll overlook that, unless you're under 25, where we won't.

    Few decisions would be simple enough to explain in criteria which aren't confidential, and in today's market, customers aren't prepared to pay for that sort of personalised service anyway. Particularly as the customers are paying for non customers.

    I get that it's frustrating, but there is no simple answer.


    Just for the record...yes fully agree..:)

    However...you knew there was a But coming..lol

    What about those who already hold an account with them..they must fit the criteria to hold a card and lets assume the account is ran in good order.

    Appreciate the answer is still going to be the same...there decision based on the info they hold.

    Just doesn't make any business sense to me,just after they declined my second card Vanguish increased my limit by £1000 and Barclaycard just upped my limit for £3500 to £5000.

    I guess in simple terms its insulting to be declined by a sub prime lender just as it would be if the fat bird down the pub,the one with dirty white shoes and leggings that are 3 sizes to small declined your advances...:rotfl:
  • WillyWonga
    WillyWonga Posts: 324 Forumite
    Having worked in a bank there were only a select few who had access to the lending criteria and each bank will target their own market.

    Eg. Gets to the end of the month and had target of 2000 new card applicants accepted yet only 1000 accepted - tweek the lending criteria to accept more people.

    Vice versa 1900 applied so tighten the score to slow down accepted people.

    Some banks like risk - credit history shows takes cash withdrawals on credit cards and utilisation is high - chance to make money. etc etc

    You could be a 999 Experian Credit Score but on the banks own lending criteria who could be rated a 666!!! Not because of bad history but because of how much you match their profile.

    One bank will decline you, one bank will accept.

    Dont forget like all comparison sites the site which you go through whether it be MSE, moneysupermarket etc etc will receive a financial reward for passing business their way from the card lender. Are they truly independent comparison sites??????
  • Chrysalis
    Chrysalis Posts: 4,486 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    I think the OPs point is "pre approved 100%" is misleading and he has a valid point.
  • John_Jones
    John_Jones Posts: 208 Forumite
    ehdx wrote: »
    I've contacted Virgin Money and asked for more information as I'd like to know the specific reasons because I can't find anything so far on my credit history that would go against me.
    They are under no obligation to explain to you, and are very u likely to choose to do so.

    You need to remember, this is akin to demanding that a prospective partner who turned you down explains exactly why. They have the right to say no to you and then tell you nothing further.
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