Why can't I get credit

MRsmummy

Hi

I currently bank with Santander. I have a 123 account that I have a £150 overdraft on. I have tried to increase this limit to £300 but they have declined it.

I then applied for a credit card on my account and was accepted in seconds with a £2000 limit.

I phoned Santander who told me that the credit score to get a credit card is lower than for an overdraft. They said take it up with Experian. So I signed up for their free credit score report to find my credit score is 971/999.

Could someone please shed some light on this for me? I have got the credit card but I haven't spent on it. But I need the money in my current account - but I don't want to pay the hefty charges that accompany withdrawing cash from a credit card.

Willing2Learn

Why do you need an overdraft?. Asking for an increased limit may cause Santander concern as it could indicate you have cashflow problems...

Your credit score of 971 is meaningless as Santander neither uses nor sees your credit score. Your credit score is for your eyes only. Santander scores you independently against their own criteria and policies using the data held in your credit file, added to the data you submit in your credit application, added to the data they already hold on you as an existing customer.

You need to take a look at the data held on your Experian credit file as that is the data that Santander will use (not the score). You can see the data for free too, by registering for MSE Credit Club.

agrinnall

If you need cash in your current account apply for a personal loan. It'll probaby be cheaper than an overdraft or withdrawing cash from a credit card. But check your credit records first to make sure there's nothing that would count heavily against you.

MRsmummy

Thanks for the replies. I need to extend my overdraft as I have not got enough funds in my account until I get paid from my new job in two weeks time. I don't get overdraft fees so I figured this would be the best way to go.

I did not know that about the credit score, thanks for the tip and thanks for the advise about how to view for free.

[Deleted User]

Are you living in your overdraft constantly?

Xbigman

If you just need money until payday use the credit card then pay it off next month which would mean no interest.
I might be stating the obvious but using an overdraft that would mean paying interest when you have a free-of-charges-if-paid-off credit card seems pointless.



Darren

MRsmummy

Yes I am living in my overdraft from aroubd the third week after payday.

jonnygee2

Thanks for the replies. I need to extend my overdraft as I have not got enough funds in my account until I get paid from my new job in two weeks time.

A big differnce between your bank and a credit card company is that your bank has much more information to make its decision on because obviously they can see your account.

In your case it was likely a decision made on the fact that it looks like you are running out of money. If your expected salary date has passed, you were paid a different amount to usual etc their rules have potentiallly figured out your last job has ended etc.

gionnetto

MRsmummy wrote: »

I phoned Santander who told me that the credit score to get a credit card is lower than for an overdraft. They said take it up with Experian.

It's not the first lender who explicitly refers to the credit SCORE as a reason for denying credit, despite what many here think :rotfl:

So my question for you is, why do you need money? Meaning, just put bills and purchases on your credit card(s), and free up the cash for whatever you need to pay in cash.

[Deleted User]

gionnetto wrote: »

It's not the first lender who explicitly refers to the credit SCORE as a reason for denying credit, despite what many here think :rotfl:

So my question for you is, why do you need money? Meaning, just put bills and purchases on your credit card(s), and free up the cash for whatever you need to pay in cash.

They’re referring to their internal scoring system. Not the CRA scores.

If purchases and bills are put on a credit card then the cash is spent elsewhere then how are they supposed to pay off the credit card?