Lloyds bank credit card successful then unsuccessful as well Halifax

in Credit File & Ratings
19 replies 1.1K views
So I applied for a Lloyds Low Apr credit card and said I was estimated a credit limit of £4800 and was successful and then the next day I also applied for a Halifax Balance Transfer Credit card with a estimated credit limit of £4800 as I wanted to get rid of my Aqua outstanding balance (£4250) as their interest rates are shocking and today I received a message by both Halifax and Lloyds that my application was unsuccessful and letter detailing our decision will be sent within 5 working days. Is it because I tried to apply for both of them and they decided to say it was unsuccessful. I applied Lloyds Bank on Sunday around 10pm and applied Halifax on yesterday at 1:27pm
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  • Jamesyb123Jamesyb123 Forumite
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    It could be due to a number of factors. They may have picked up something whilst doing their final checks which would include credit check, affordability and also fraud checks with cifas. If you have been able to obtain other lines of credit recently then cifas unlikely to be an issue but if you get rejected quite a bit but you have a strong credit history then request a SAR from cifas just to make sure there’s no markers there. It could be that their system didn’t like you made 2 quick applications within the same banking group and got spooked. Honestly there are many things it could be.
  • It could be due to a number of factors. They may have picked up something whilst doing their final checks which would include credit check, affordability and also fraud checks with cifas. If you have been able to obtain other lines of credit recently then cifas unlikely to be an issue but if you get rejected quite a bit but you have a strong credit history then request a SAR from cifas just to make sure there’s no markers there. It could be that their system didn’t like you made 2 quick applications within the same banking group and got spooked. Honestly there are many things it could be.
    I have 980 credit score on Experian and had also accidentally applied for a Amex iconic green card by accident when I checking eligibility but applied instead the day before 
  • 2021BJ2021BJ Forumite
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    RahmanQ said:
    It could be due to a number of factors. They may have picked up something whilst doing their final checks which would include credit check, affordability and also fraud checks with cifas. If you have been able to obtain other lines of credit recently then cifas unlikely to be an issue but if you get rejected quite a bit but you have a strong credit history then request a SAR from cifas just to make sure there’s no markers there. It could be that their system didn’t like you made 2 quick applications within the same banking group and got spooked. Honestly there are many things it could be.
    I have 980 credit score on Experian and had also accidentally applied for a Amex iconic green card by accident when I checking eligibility but applied instead the day before 
    CIFAS has nothing to do with your credit score and will not appear on your credit file.
  • edited 24 February at 8:38PM
    ThrugelmirThrugelmir Forumite
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    edited 24 February at 8:38PM
    RahmanQ said:
     Is it because I tried to apply for both of them and they decided to say it was unsuccessful.
    Why did you apply for both ?  They will be assuming that you are also applying elsewhere in an attempt to obtain a large amount of credit. 
    It's not whether you're right or wrong that's important, but how much money you make when you're right and how much you lose when you're wrong." — George Soros
  • floppydisk1floppydisk1 Forumite
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    It could be many things but one thing I can think of as a most likely - both Lloyds and Halifax are members of the same banking group and as such share all informations. You have applied for a card, was accepted and then couple of hours later you applied for another card from the same banking group so it was read as you are desperate for credit and as far as they are concerned they were not prepared to take the risk and both applications were declined. 
      It is always a bad idea to apply for multiple cards at the same time and even more so when you apply within he same banking group ( ea  Lloyds, Halifax, bank of scotland  or another example HSBC, First Direct, M & S or john Lewis credit card... ) 
    You should have applied for 1 card - whichever is more important ( say balance transfer ) and 6 months later apply for another one , preferably not from the same provider or same banking group. 
     When you want to shift Aqua card balance to a new 0 % card , you don't need another low APR card at the same time anyway - priority is to pay off the debt first - anything else is the big full fat red flag for any bank, from their point of view you want to shift balance to a 0 % card and immediately run a debt on a another new card- so as far as they might be concerned you can end up with 2 cards with high balance and no 0 % available and no means to pay it off as you seem to rely on credit for day to day spending - I am not saying that is the case, I am saying that is as most banks would interpret your  multiple applications, and even more so now when credit criteria are getting tighter ....
  • It could be many things but one thing I can think of as a most likely - both Lloyds and Halifax are members of the same banking group and as such share all informations. You have applied for a card, was accepted and then couple of hours later you applied for another card from the same banking group so it was read as you are desperate for credit and as far as they are concerned they were not prepared to take the risk and both applications were declined. 
      It is always a bad idea to apply for multiple cards at the same time and even more so when you apply within he same banking group ( ea  Lloyds, Halifax, bank of scotland  or another example HSBC, First Direct, M & S or john Lewis credit card... ) 
    You should have applied for 1 card - whichever is more important ( say balance transfer ) and 6 months later apply for another one , preferably not from the same provider or same banking group. 
     When you want to shift Aqua card balance to a new 0 % card , you don't need another low APR card at the same time anyway - priority is to pay off the debt first - anything else is the big full fat red flag for any bank, from their point of view you want to shift balance to a 0 % card and immediately run a debt on a another new card- so as far as they might be concerned you can end up with 2 cards with high balance and no 0 % available and no means to pay it off as you seem to rely on credit for day to day spending - I am not saying that is the case, I am saying that is as most banks would interpret your  multiple applications, and even more so now when credit criteria are getting tighter ....
    Will this put a hard search on my credit file?
  • floppydisk1floppydisk1 Forumite
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    Checking eligibility is quite different from applying - to apply you have to fill in quite detailed form with your details, income, verify that you are actually applying  etc... Lesson learned and next time  read twice before you hit enter  ...
       What credit providers can see and deduct from your recent behaviour is that - rightly or wrongly - you are desperate for credit and acting like a winner of a supermarket sweep and trying to get as much credit available as possible as fast as possible.... Stop applying for any more and after about 6 months check eligibility ONLY and apply for one - the one with the highest probability of being accepted for.  Score of 980 means nothing as only you can see it and Experian is not a credit card provider or a lender. Lenders do their own internal credit scoring based  on many factors - by far the most important is your previous conduct and financial history - and it's fair to say that  your multiple applications in  last few day can only be interpreted in one way, and it's not doing you any favours.
       It will put a hard search on your credit file as you did apply for credit so they all have to put a mark on your file ( if you are lucky , there is a possibility that Halifax  search might not be put on, as after detecting second application in as many days they might have rejected you  straight away, even before the hard search... )  Every time you apply for a line of credit ( be it credit card, loan, mortgage or even a mobile phone contract ) providers HAVE to report any hard search, you can't pick and chose what appears on your credit file. Lloyds and Amex  search will definitely be on your file, Halifax probably too  
  • 2021BJ2021BJ Forumite
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    RahmanQ said:
    It could be many things but one thing I can think of as a most likely - both Lloyds and Halifax are members of the same banking group and as such share all informations. You have applied for a card, was accepted and then couple of hours later you applied for another card from the same banking group so it was read as you are desperate for credit and as far as they are concerned they were not prepared to take the risk and both applications were declined. 
      It is always a bad idea to apply for multiple cards at the same time and even more so when you apply within he same banking group ( ea  Lloyds, Halifax, bank of scotland  or another example HSBC, First Direct, M & S or john Lewis credit card... ) 
    You should have applied for 1 card - whichever is more important ( say balance transfer ) and 6 months later apply for another one , preferably not from the same provider or same banking group. 
     When you want to shift Aqua card balance to a new 0 % card , you don't need another low APR card at the same time anyway - priority is to pay off the debt first - anything else is the big full fat red flag for any bank, from their point of view you want to shift balance to a 0 % card and immediately run a debt on a another new card- so as far as they might be concerned you can end up with 2 cards with high balance and no 0 % available and no means to pay it off as you seem to rely on credit for day to day spending - I am not saying that is the case, I am saying that is as most banks would interpret your  multiple applications, and even more so now when credit criteria are getting tighter ....
    Will this put a hard search on my credit file?
    Yes.  Two in fact.
  • Checking eligibility is quite different from applying - to apply you have to fill in quite detailed form with your details, income, verify that you are actually applying  etc... Lesson learned and next time  read twice before you hit enter  ...
       What credit providers can see and deduct from your recent behaviour is that - rightly or wrongly - you are desperate for credit and acting like a winner of a supermarket sweep and trying to get as much credit available as possible as fast as possible.... Stop applying for any more and after about 6 months check eligibility ONLY and apply for one - the one with the highest probability of being accepted for.  Score of 980 means nothing as only you can see it and Experian is not a credit card provider or a lender. Lenders do their own internal credit scoring based  on many factors - by far the most important is your previous conduct and financial history - and it's fair to say that  your multiple applications in  last few day can only be interpreted in one way, and it's not doing you any favours.
       It will put a hard search on your credit file as you did apply for credit so they all have to put a mark on your file ( if you are lucky , there is a possibility that Halifax  search might not be put on, as after detecting second application in as many days they might have rejected you  straight away, even before the hard search... )  Every time you apply for a line of credit ( be it credit card, loan, mortgage or even a mobile phone contract ) providers HAVE to report any hard search, you can't pick and chose what appears on your credit file. Lloyds and Amex  search will definitely be on your file, Halifax probably too  
    The Lloyds Credit Card is suddenly back on the online banking after been not their all day today?
  • edited 24 February at 10:24PM
    zx81zx81 Forumite
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    edited 24 February at 10:24PM
    No one here can tell you if it is or not, as we don't have access to your online banking.
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