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appealed a declined credit card application with no success, why?

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appealed a declined credit card application with no success, why?

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lottieq12lottieq12 Forumite
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I did a soft check through my banking app for a credit card and was told I would not be successful, I took it on the chin and popped into my local branch to ask why, as I met all the basic criteria they set out, being over 18, no debt, income over 10K etc, so I went in with the intention of finding out where I was going wrong so I could go back in future and apply for one when I knew I had a good chance of being accepted. The person I was speaking to ran a soft check to see what I meant and it came back as saying I would likely be accepted, I was encouraged there and then to apply for one, and because it was ultimately my end goal I agreed and went ahead with the application in the bank. The application was declined, someone more senior was assisting the person dealing with my application as it was the first time she had done it so she wanted someone to double check and make sure she was doing the right thing. At the point my official application was declined, the more senior person said that was odd as I had been shown to be likely to be accepted even though he made it very clear being in the likely category didn't mean anything was certain. The more senior person said because he was so sure I would be accepted he would appeal the decision personally because they had just updated the system so it could be because I had just been changed from student to part time on the employment section and the system hadn't caught up in time. I got a call today to say the appeal had not been successful so I was wondering if anyone could share any reasons why? 
Some background info about my financial situation, I am employed and have been with the same company for more than 6 months, I work part time and earn more than 15k per annum, I am also still a full time student but do not hold any student accounts, I have no debt, and because I haven't finished uni yet, I have no student loan repayment plans etc either and I have banked exclusively with the bank in question since I was old enough to have my own bank account. I just want to increase my credit score I don't actually need access to credit, and yes I already pay my own phone bill etc. 
So why has my/the banks appeal been declined? 

Thanks in advance 

Replies

  • edited 1 July at 3:31PM
    binaryuniversebinaryuniverse Forumite
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    edited 1 July at 3:31PM
    It's impossible for us to know the exact reason why you were declined. The only people that can tell you would be those you applied to.

    However, it sounds as if this is your first credit card, and little to no credit history plays a big factor. You may have better luck with the likes of Aqua, who are more willing to take a risk with you, but offer eye watering interest rates. Use that to build up a credit history by buying things and paying it off in full, every month. After a while, you may be looked at more favourably for other cards.
  • jet01jet01 Forumite
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    Who do you bank with? Although you say don’t have a student account you may still be able to apply for their ‘student’ credit card if they have one. You may be more likely to be accepted for that than their standard product if you are still in full time education. Other than than that as binaryuniverse says in the post above Aqua are normally willing to accept students. It may also be prudent to have a look at your actual credit report with the 3 major agencies before making any further applications just to make sure there isn’t anything on there that you aren’t aware of that  may be impacting on this. 
  • ThrugelmirThrugelmir Forumite
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    Companies do not have to share commercial data with you. They can choose who to conduct business with and set their internal criteria accordingly. Little point in flogging a dead horse. Apply elsewhere. 
    “Buy value, not market trends or the economic outlook. Individual stocks determine the market, not vica versa." - Sir John Templeton
  • MovingForwardsMovingForwards Forumite
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    If it's NW 'likely' doesn't mean you will get approved, 'highly likely' gives you better odds of getting it.

    Your credit score isn't seen or used by financial institutions as they have their own internal algorithm methods for deciding if an application should be approved or not. It's the credit history they work off.
  • MalkytheheedMalkytheheed Forumite
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    Sound like your credit file is thin. Try with a "bad" credit card first. Your bank will likely be a "midrange" which you are unlikely to get as your first card. https://www.moneysavingexpert.com/credit-cards/bad-credit-credit-cards/
  • SandtreeSandtree Forumite
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    The application criteria are much like job specs... they list the bare minimum required to be able to apply rather than the actual level the average person who is accepted has (unlike APR). A good few years ago I remember one of the private banking/wealth management banks credit card page used to say you need a minimum income of £10,000 to apply for the credit card however to hold any form of account with them you need either an income over circa £200,000 or investable funds over £400,000.

    As you are a student still you may have better luck with a student product as these typically have lower requirements with the hope of retaining your business when you are a graduate and a more significant earner. Alternative there are the sub-prime offerings which will be less concerned about your lack of evidence of being good with credit.
  • MinuteNoodlesMinuteNoodles Forumite
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    Is there a particular reason you want a credit card because if it's just for credit building apply for an Aqua or Vanquis. They're aimed at the sub-prime market so whilst the interest rate is high the likelihood of being accepted is higher too. The interest rate is inconsequential because for credit building you'll be just putting a little of your normal spending on it every month and setting up a direct debit to pay the bill off in full every month so you'll never pay any interest. Also the credit limits are low, in the few hundreds, so it's harder to let it run away and you owe thousands you can't afford to repay.
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