New credit card

pepperpot22_2

I recently switched current account from Smile to Lloyds.  Partly because Smile’s website is showing its age/becoming glitchy and partly to take advantage of Lloyds £200 switching incentive.  I also decided to close my little used, nil balance credit card with Smile, thinking it would be simpler to have one with Lloyds.  After my current account was open but before the switch was complete, I started an application for Lloyds credit card, was approved first £1800 but I decided to hang fire before completing the application until my current account was switched.  When I went back to apply again, I was declined.  According to the credit checker on the Lloyds app my credit score is ‘excellent’ but factors affecting credit are the lack of available credit I have and lack of credit history.  I was a little annoyed so searched for a ‘credit building’ credit card and requested a low credit limit £500 so I wouldn’t keep getting rejected and harm my credit score.  I’ve now got a M&S credit card and will use this for larger purchases and pay back in full each month to show I’m not an untrustworthy little so and so.  

My question is why would I be accepted for a credit card and then declined shortly after?  Also how long will it take to build up my credit score (I’m at the lower end of ‘excellent’ according to the Lloyds app).

I really only want a credit card for emergencies or for extra protection on occasional large purchases.  Many years ago (long disappeared from my credit report) I got into a mess with credit card debts and I don’t really feel comfortable as a result using a credit card for everyday small purchases.

Emmia

pepperpot22_2 said:

I recently switched current account from Smile to Lloyds.  Partly because Smile’s website is showing its age/becoming glitchy and partly to take advantage of Lloyds £200 switching incentive.  I also decided to close my little used, nil balance credit card with Smile, thinking it would be simpler to have one with Lloyds.  After my current account was open but before the switch was complete, I started an application for Lloyds credit card, was approved first £1800 but I decided to hang fire before completing the application until my current account was switched.  When I went back to apply again, I was declined.  According to the credit checker on the Lloyds app my credit score is ‘excellent’ but factors affecting credit are the lack of available credit I have and lack of credit history.  I was a little annoyed so searched for a ‘credit building’ credit card and requested a low credit limit £500 so I wouldn’t keep getting rejected and harm my credit score.  I’ve now got a M&S credit card and will use this for larger purchases and pay back in full each month to show I’m not an untrustworthy little so and so.  

My question is why would I be accepted for a credit card and then declined shortly after?  Also how long will it take to build up my credit score (I’m at the lower end of ‘excellent’ according to the Lloyds app).

I really only want a credit card for emergencies or for extra protection on occasional large purchases.  Many years ago (long disappeared from my credit report) I got into a mess with credit card debts and I don’t really feel comfortable as a result using a credit card for everyday small purchases.

The "score" is a made up fairy number only you see. What matters is the stuff in the file itself, so credit card balances being cleared in full each month, a long history of accounts being open...

If you've not had or used much credit then your file can be "thin" which means the risk assessment (of you not paying) lenders do is more tricky as there's less data.... Hence low limits to reduce their risk.

J63320

 I applied for the Lloyds Ultra card. I’ve been a Lloyds customer since they split from Lloyds TSB, having been a LTSB customer since the merger, having been a TSB customer since I went to work for them in 1987. Lloyds are now paying me a pension. I have a Club Lloyds account and meet the monthly £2K funding requirement, and I have two other cards that I use regularly and pay off each month. Accepted - but with a measly £1000 credit limit. 

I just think there’s no point in trying to understand how they make their decisions.

SuperAllyB

Could it be that they don't allow two applications within a set period of time, regardless of whether first one was approved/declined/incomplete?  Might be worth giving them a call to see if there's anything they can do 🤷🏻‍♂️

Jami74

pepperpot22_2 said:

 I’ve now got a M&S credit card and will use this for larger purchases and pay back in full each month to show I’m not an untrustworthy little so and so.  

You don't necessarily have to use it for large purchases, just spend a fiver on once a month and let the direct debit pay it off in full. After a few months request a higher limit. 

pepperpot22_2

SuperAllyB said:

Could it be that they don't allow two applications within a set period of time, regardless of whether first one was approved/declined/incomplete?  Might be worth giving them a call to see if there's anything they can do 🤷🏻‍♂️

I wondered about that too as the applications were literally within days of each other.