Are credit agencies pushing the cards they want us to have?

Jpreston30

I've spent a little while looking at this, and recently when one if the credit score agencies send me a message to say that I've been pre approved for a card, I look with interest to find it's usually the one with a high interest rate, yet telling me I wont be approved for let's say MBNA for example, I then look at another agency who say that I will be approved if I apply for MBNA, I have to add my credit score is high so why would I even consider a high interest card for bad credit, I'm wondering if this is a ploy to make you apply for ones the agencies are getting the best commission or referral fee for rather than the best considering your needs or circumstance??? Anyone else finding this? I think this could be something that in the future becomes quite a problem, like PPI!!

sourcrates

They are credit brokers, they are always going to recommend whatever products they get paid the most for, stands to reason high interest cards will pay the most for new customers.

Jpreston30

I understand that, what I am saying is that is it right that these agencies are deciding on what you can and cant have? For example if you thought you were only eligible for the high interest when in fact your not, it it not quite wrong that someone might only apply for the high interest one, unknowing that it's not the only option.... that's my point, understand why they do it, just not sure its ethical?

[Deleted User]

No, the're not deciding anything.

They just hold the data for lenders to check. The lender makes the decision according to their own criteria.

phillw

Jpreston30 wrote: »

I understand that, what I am saying is that is it right that these agencies are deciding on what you can and cant have? For example if you thought you were only eligible for the high interest when in fact your not, it it not quite wrong that someone might only apply for the high interest one, unknowing that it's not the only option.... that's my point, understand why they do it, just not sure its ethical?

The agencies offer two services.

1. is holding your details and providing them to lenders to make their own decision when you apply for credit.
2. is asking you if you want to take a credit card from a lender that has paid them to offer it to people with certain criteria.

They aren't recommending that card to you as a good card, they aren't saying that is the only card you can have. Treat it like any other advertising.

mwarby

It’s conceivable that they are manipulating the % chance rating they often display next to the list of cards, to try and push users towards applying for one over another, eg a card with little commission might be downgraded from 90% to 50% chance. This wouldn’t actually change the chances of being accepted, as not thier decision

2e0arr

I consider that they are in the business to make money and like "independent financial advisers", will always promote and recommend the companies that give them the most commission.