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Credit card application rejected.

I haven't had a credit card for many years, but I am looking at buying some expensive furniture, so I thought it would be wise to get a credit card to have some protection if there were any problems with the furniture. 

I have banked with Santander ever since they took over Alliance and Leicester. My salary and later my pensions are always paid into my current account, and I have a reasonable sum in my current and savings account.

I've never been in debt and had no problems with my Santander accounts, so it seemed logical to apply for a card from them. The card would be used to buy the furniture and would be paid off in full once it was clear there were no issues with the furniture.

My credit score is 999, so I don't see myself being a risk at all.

After completing the form to check I was eligible for a card, Santander informed me that they couldn't issue me with a credit card. 

I'm very surprised at this decision, and I just can't see any reason why my application would be rejected. I have tried other banks and most of them have agreed I could have a card, so why not Santander?

I would much prefer to keep all my banking business with Santander, so I'm somewhat disappointed and confused with their decision.

Any ideas why I would be refused?

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Comments

  • HillStreetBlues
    HillStreetBlues Posts: 4,568 Forumite
    1,000 Posts Second Anniversary Homepage Hero Photogenic
    Have you checked your 3 credit files (not scores)?
    Let's Be Careful Out There
  • MorningcoffeeIV
    MorningcoffeeIV Posts: 1,946 Forumite
    1,000 Posts First Anniversary Name Dropper
    You have no credit history by the sounds of it, hence the fake 999 credit score.

    Try an eligibility checker to see what you might be able to get. Being higher risk, you may need to start lower down the food chain.

    As long as you clear in full, any card will serve your purpose.


  • Tango1947
    Tango1947 Posts: 30 Forumite
    Seventh Anniversary 10 Posts
    You have no credit history by the sounds of it, hence the fake 999 credit score.

    Try an eligibility checker to see what you might be able to get. Being higher risk, you may need to start lower down the food chain.

    As long as you clear in full, any card will serve your purpose.


    I certainly have a credit history, mainly with car finance. My last one was with Santander! I've also had low value PayPal credit and  Amazon credit, in recent years. Always paid off.

    Why do you say I'm 'higher risk'?
  • daivid
    daivid Posts: 1,277 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    As above check your credit files - this can be done for free by means such as the MSE credit club. You could also try asking Santander, they may not tell you but without asking all you will be able to do is speculate. Santander may have an internal rating system for their customers, Halifax certainly did 10ish years ago that may have all changed with the proliferation of credit reference agencies.
  • Brie
    Brie Posts: 12,417 Ambassador
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    depending on where you're buying the expensive furniture maybe there's a store card or store finance available??
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  • Tango1947
    Tango1947 Posts: 30 Forumite
    Seventh Anniversary 10 Posts
    Brie said:
    depending on where you're buying the expensive furniture maybe there's a store card or store finance available??
    Yes, but I don't actually want or need any form of finance. I just want the protection of a credit card purchase. 

    There is some history to this. I purchased some furniture last year which was not fit for purpose. I paid by debit card and received no help from my bank in recovering my money. Eventually went to small claims court and was successful in recovering my money in full. I don't want this to happen again, so I thought a credit card purchase would be a more sensible option.
  • daivid
    daivid Posts: 1,277 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    or a reward card if someone will offer one - if you spend £2000 in the 1st 3 months with Amex Platinum Everyday you would get £100 back (subject to spending at least £3000 over the year), slightly better offers are available if you want the reward as Avios or Nectar points. I understand the simplicity of sticking to one bank but loyalty tends not to pay in finance.
  • Tango1947
    Tango1947 Posts: 30 Forumite
    Seventh Anniversary 10 Posts
    I think I have solved the problem. 

    I have a car on finance. I paid a large deposit. And have a very low monthly payment. After three years I have the usual options if handing it back, paying the balance, or part exing the car. However the balloon payment is too close to my monthly income (I'm retired so only receive pensions). So I'm treated as a bad risk.

    However I have far more funds in my current and saving accounts than I need to complete the car finance, but obviously they have not taken this into account. Also the bulk of my savings resides in my wife's account with another bank so there's no question of not having sufficient finances. But of course Santander would not be aware of this.

    It seems to be a weakness in the system in that they don't consider the assets available from savings when evaluating ones eligibility for a cc. I could have a million pounds in the bank, and still have my application rejected!

    Obviously now, I will go to another cc provider.
  • daivid
    daivid Posts: 1,277 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    Tango1947 said:

    It seems to be a weakness in the system in that they don't consider the assets available from savings when evaluating ones eligibility for a cc. I could have a million pounds in the bank, and still have my application rejected!

    Yes credit card applications are very basic in comparison to say a mortgage application, works in the favour of some and against others. The payoff though is cards are available quickly for those accepted.
  • beemarman
    beemarman Posts: 32 Forumite
    Part of the Furniture 10 Posts Combo Breaker
    Tango1947 said:
    I think I have solved the problem. 

    I have a car on finance. I paid a large deposit. And have a very low monthly payment. After three years I have the usual options if handing it back, paying the balance, or part exing the car. However the balloon payment is too close to my monthly income (I'm retired so only receive pensions). So I'm treated as a bad risk.

    However I have far more funds in my current and saving accounts than I need to complete the car finance, but obviously they have not taken this into account. Also the bulk of my savings resides in my wife's account with another bank so there's no question of not having sufficient finances. But of course Santander would not be aware of this.

    It seems to be a weakness in the system in that they don't consider the assets available from savings when evaluating ones eligibility for a cc. I could have a million pounds in the bank, and still have my application rejected!

    Obviously now, I will go to another cc provider.
    That's probably because the money in your account could be easily withdrawn or spent within days. That's why banks don't include these. My friend has nearly a million in his account, but he got declined when applying for car finance for a  car for his daughter. The same daughter applied for the finance and was approved, even though she only had £3k in her account. But she's had a few loans and a credit card for the past 8 years.
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