Declined by Amex despite not applying for more credit as an existing member.

Sensory

I’m baffled by this and any insight would he much appreciated.

I currently use the British Airways Amex card for Avios, and simply wanted to switch to the Platinum Cashback Everyday card instead, whilst keeping my existing credit limit. As they are different reward programs, I had to submit a new application, but was declined. I requested a manual review with an added note to transfer half of my BA credit limit to the new card, so in effect there would be no additional lending. I was declined again.

I appealed in writing including a copy of my statutory Experian report, explaining my intentions, and I was declined yet again, final decision. They cited complex internal scoring processes but couldn’t reveal why I was declined.

I have a perfect payment history across all my credit accounts, low credit utilisation, active mortgage, am on the electoral roll, my oldest active account was opened in 2008, and Amex can see my current BA account.

They haven’t reduced my existing limit or terminated my BA account, so I can’t understand their decision based on scoring.

GeordieGeorge

Different cards have different eligibility criteria. Some require a certain income, or annual spend.

lisyloo

I don’t understand why you aren’t their target customer and I think you’ve done everything you can.
it sounds harsh but they are entitled not to offer you the card and they don’t owe you an explanation. 
Tough, yes.

Brie

How do they know for sure that you are going to close the older account?  As far as they know you have a limit of £X and are looking to double that by getting a second card.

Sandtree

Brie said:

How do they know for sure that you are going to close the older account?  As far as they know you have a limit of £X and are looking to double that by getting a second card.

the didn't say they wanted to close the other account... indeed they suggested redistributing its limit across the two cards.

Chino

Sensory said:

I have ... active mortgage

In other words, you already have a massive debt to repay.

Vinknut

Sensory said:

I have a perfect payment history across all my credit accounts, low credit utilisation, active mortgage, am on the electoral roll, my oldest active account was opened in 2008, and Amex can see my current BA account.

Perfect payment history = completely clearing the balance every month? Or making on/near the minimum payment

Credit utilisation implies that you are carrying as balance.  How much balance do you regularly carry?

There's something in your usage pattern or level of debt/income ratio, or something else that they don't like for new customers, but is acceptable for keeping an existing account open without increasing rates or reducing your limits...

Sensory

Chino said:

Sensory said:

I have ... active mortgage

In other words, you already have a massive debt to repay.

It's a secured debt, and having a mortgage in your early thirties indicates more stability, which is something lenders usually like.

Vinknut said:

Sensory said:

I have a perfect payment history across all my credit accounts, low credit utilisation, active mortgage, am on the electoral roll, my oldest active account was opened in 2008, and Amex can see my current BA account.

Perfect payment history = completely clearing the balance every month? Or making on/near the minimum payment

Credit utilisation implies that you are carrying as balance.  How much balance do you regularly carry?

There's something in your usage pattern or level of debt/income ratio, or something else that they don't like for new customers, but is acceptable for keeping an existing account open without increasing rates or reducing your limits...

I always pay off all my credit cards in full every month. I use them for almost all day-to-day spending where possible to benefit from cashback/rewards, and my credit utilisation is usually around 5% of ~£17,000. Since opening the BA account two years ago, my annual salary (as well as household income) has increased, and my monthly expenditure has decreased (as a result of getting a mortgage).

I just don't understand why, if I specifically requested for my overall existing credit limit with them to remain the same, there would be any difference to the degree of risk. Unless they just don't wish to lose money because they'd have to credit my Amex account instead of transferring Avios?

adamp87

As GeordieGeorge already said different criteria for different cards. It’s not just a case of simply switching cards over. Different card, different risk profile and targeted customer evidently.

I don’t believe they would allow to
you to convert Avios to cashback/points do they? If they don’t I don’t see how that effects it.

For whatever reason you didn’t fit the bill this time around for them, you don’t get an answer unfortunately really ever from any provider. 

Vinknut

Sensory said:

Vinknut said:

Sensory said:

I have a perfect payment history across all my credit accounts, low credit utilisation, active mortgage, am on the electoral roll, my oldest active account was opened in 2008, and Amex can see my current BA account.

Perfect payment history = completely clearing the balance every month? Or making on/near the minimum payment

Credit utilisation implies that you are carrying as balance.  How much balance do you regularly carry?

There's something in your usage pattern or level of debt/income ratio, or something else that they don't like for new customers, but is acceptable for keeping an existing account open without increasing rates or reducing your limits...

I always pay off all my credit cards in full every month. I use them for almost all day-to-day spending where possible to benefit from cashback/rewards, and my credit utilisation is usually around 5% of ~£17,000. Since opening the BA account two years ago, my annual salary (as well as household income) has increased, and my monthly expenditure has decreased (as a result of getting a mortgage).

I just don't understand why, if I specifically requested for my overall existing credit limit with them to remain the same, there would be any difference to the degree of risk. Unless they just don't wish to lose money because they'd have to credit my Amex account instead of transferring Avios?

It might be because you're not spending enough. It might be because you now have a mortgage.  Although you think it indicates stability, it could also indicate that you've just got married/moved in with a partner and maybe have a child on the way, which usually means a reduction in household income which is an increased risk.

Don't worry about understanding it, you didn't meet their criteria, you may never understand why, just move on.

Sensory

Vinknut said:

Sensory said:

Vinknut said:

Sensory said:

I have a perfect payment history across all my credit accounts, low credit utilisation, active mortgage, am on the electoral roll, my oldest active account was opened in 2008, and Amex can see my current BA account.

Perfect payment history = completely clearing the balance every month? Or making on/near the minimum payment

Credit utilisation implies that you are carrying as balance.  How much balance do you regularly carry?

There's something in your usage pattern or level of debt/income ratio, or something else that they don't like for new customers, but is acceptable for keeping an existing account open without increasing rates or reducing your limits...

I always pay off all my credit cards in full every month. I use them for almost all day-to-day spending where possible to benefit from cashback/rewards, and my credit utilisation is usually around 5% of ~£17,000. Since opening the BA account two years ago, my annual salary (as well as household income) has increased, and my monthly expenditure has decreased (as a result of getting a mortgage).

I just don't understand why, if I specifically requested for my overall existing credit limit with them to remain the same, there would be any difference to the degree of risk. Unless they just don't wish to lose money because they'd have to credit my Amex account instead of transferring Avios?

It might be because you're not spending enough. It might be because you now have a mortgage.  Although you think it indicates stability, it could also indicate that you've just got married/moved in with a partner and maybe have a child on the way, which usually means a reduction in household income which is an increased risk.

Don't worry about understanding it, you didn't meet their criteria, you may never understand why, just move on.

This is a standard response I would understand if I were applying for a new card with additional lending, but I am not. Regardless of the changes in my circumstances, their exposure to that risk has not and will not change. They could reduce any calculated risk by reducing my current credit limit, but they have not.

This scenario only occurred because I wanted 0.5% cashback instead of Avios. I spend on the BA card the most because it has a high limit, which allows me to keep my utilisation low on a per card basis.