Just been refused a HSBC Credit Card!?

JamJar

Hi.

I’ve been doing interest free credit cards and balance transfers for many (20+) years…broadly following the ‘rules’ from Martin’s advice. I’ve got excellent credit history across the various credit reference agencies I look at - Experian, Clearscore and CreditKarma. My financial circumstances haven’t changed for 5+ years, although I’ve done a current account switch recently, to take advantage of a switching bonus.  I recently applied for a HSBC long period 0% purchase card without using the eligibility checker, as I had accounts at HSBC so thought all would be fine. Today I found out that my application has been declined and I’m due a letter from HSBC to explain their decision - I’m not sure what this will detail and I’ve never had a credit card application refused before. I looked at Martin’s eligibility checker today and all credit cards are showing ‘no eligibility score’?

A couple of questions if I may indulge you all:

1. Does anyone know which credit reference agency HSBC use?
2. What might be the factors that have made them decline my application?

Thanks.

JJ

cymruchris

Do you have any existing debt on cards - whether on promotional rates or not? If so - how's this as a ratio to your income? It may be that your current debt level to income ratio isn't a match for HSBC's criteria for the particular product you've applied for. Ultimately nobody will know why they've declined you, and you'll never know either - aside from that today when you applied - you didn't fall within the criteria of customer they were looking for. As long as the data is all correct (and that you've checked it) on all of your 3 main reports - then if there is any debt - try and work it down a touch and then apply again in a month or two. HSBC declined me on my first application - but 6 months later accepted me. (and nothing changed between both applications in terms of debt - as I don't have any - and income remained the same)

Shanwick

I think they are still using Experian.

born_again

Martin also advices to plan to pay off the 0% by the end of the term 👍

As people are now finding. That constant transfer to another 0% card is coming to a end. 

OP have you had a HSBC card before?
As odds on the letter will say you did not match their criteria at this point, but to check you CRA to ensure all data is correct.

Thrugelmir

JamJar said:

My financial circumstances haven’t changed for 5+ years,

Doesn't mean that the wider world hasn't though. Regulation of all types of credit has been under review for many years now. Gradually tighter and tighter controls are being imposed. 

yksi

The letter will be most enlightening and I guarantee will have this level of detail:

We use a number of criteria for our lending decisions including information held on you with (Experian/Equifax/Transunion) and you can see the information held on you by contacting these CRAs directly.

That is... they won't tell you any useful reason whatsoever.

[Deleted User]

born_again said:

Martin also advices to plan to pay off the 0% by the end of the term 👍

As people are now finding. That constant transfer to another 0% card is coming to a end. 

OP have you had a HSBC card before?
As odds on the letter will say you did not match their criteria at this point, but to check you CRA to ensure all data is correct.

I find it's a bit hit and miss, Sainsbury's, Natwest, Lloyds and Halifax are all chucking offers at me, Barclays were, then stopped, then were, then stopped. I don't have any immediate need to use the card for more transfers but it's a a bit annoying as they give the longest deals to me, and they only just increased my limit to £10k!

wendywindle

Hi JJ, any enlightenment from the promised letter?  I've not much to add, other than I used to work for HSBC and they always prided themselves (indeed gloated, during the 2008 money market crisis) on having a far more conservative/cautious lending strategy than their competitors.

JamJar

wendywindle said:

Hi JJ, any enlightenment from the promised letter?  I've not much to add, other than I used to work for HSBC and they always prided themselves (indeed gloated, during the 2008 money market crisis) on having a far more conservative/cautious lending strategy than their competitors.

Nothing received as yet….I have found out that HSBC did 2 credit checks on me a couple of days apart and I assume this was for the same application?

yksi

I got the double-whammy from HSBC as well. One CRA deleted the duplicate automatically, and the other one had them so close that I was told it's treated like it's one anyway.

JamJar

Thanks all. Finally got my letter….it’s as vague as you’ve all said it would be.

Plus I’m still getting no eligibility score on the Credit Club credit card area 🤔