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Nat West Credit Score

I wanted to move bank accounts and chose the Nat West rewards Acc as it most suited my financial position. I wanted to get their Rewards Credit card as well to maximise benefits of the account. I was accepted and given a £2k overdraft (which I didn't particularly want but hey ho). They then invited me to apply for the credit card which I did, but they refused me telling me that my credit score needed attention and advised me to go to experian etc. I did this and found that my credit score is 962 - excellent - which I already new. Retired with an income of some £33k, own my own house worth £425k, no debt, no dependants, only one other CC paid off every month etc etc etc. So I complain to Nat West and they say sorry but due to Corona etc they apply a more stringent credit check but they won't tell me why they refuse. I persist and they subject my application for appeal. After all how can my income fall - unless I die. They still refuse but pay me another £50 on top of the £175 they already paid me for switching. So I shall switch again. The daft thisng is that their sister bank (RBS)offer me the same card with a limit of £8.5k which I don't need or want. Is it me???

Comments

  • bowlhead99
    bowlhead99 Posts: 12,295 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Post of the Month
    Despite credit reference agencies saying you have a good score because you don't have lots of debt or markers from failing to pay debts on time, banks don't actually use a 'score' from a credit reference agency when making their decisions. 

    Instead they take the raw data supplied by the agency and calculate their own score based on what attributes they would like the customer to have to qualify for their product.  If you have one new credit relationship without any reported history (the rewards a/c overdraft) and no other major borrowings (mortgage, other loans, other credit cards with a history of carrying and paying off a balance) because your only credit card is always paid before it results in any interest being paid - then there is not a lot for them to go off when assessing whether you would reliably pay off a new rewards card.  And your history with your only CC is that the CC issuer never makes interest off you because you never let a balance build up. 

    So, from their perspective:

    - they don't know if you will pay off your debts because you don't have much history on file of having and paying off debts, because you've chosen not to have any. And you also have a new overdraft facility with no history of managing it. These factors are negative and could cause them not to offer you the card as they don't know you're low risk. You know your pension income can't fall, they don't.  Some people have pension income that can fall based on the stock markets etc.

    - with the one card you have, you clear it each month, and if you do that with their card will not earn any interest from offering you the product and giving you 'rewards'.

    If you spend on the card and pay it off immediately, they give you rewards and earn no income. Not great. If you don't pay it off, they lose money. Not great. As such, what's in it for them ?

    The daft thisng is that their sister bank (RBS)offer me the same card with a limit of £8.5k which I don't need or want. 

    This other bank offer you the same card, with a decent limit, and you say you don't need or want that card?  If you don't want such a card, why are you complaining that they won't give you a Nat West card and so disappointed with them that you will switch accounts to get away from them? 
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