HSBC Application Declined - advice needed

lauraza

Hi everyone,

I'm new to credit cards and need some advice about my application for HSBC's 0% for 12 months card. Applied online and was immediately declined, have checked my score with Experian prior to application and score was 850 (out of 1000) which I thought was ok. I am a homeowner, with no late payments etc, have been with my employer 6 months (could this be it?), and moved house just under 2 years ago. Really desperate for a credit card as my partner is living in New Zealand for the next 6 months and need to book a flight out to see him!

How long would people recommend waiting until I re-apply with them or another bank?

Thank for reading and I hope some of you more experienced credit card users could advise!

jonesMUFCforever

Are you on Electoral roll?
Did you have an account with HSBC?
Have you tried applying to the bank where your salary is being paid into?

Do you have any other credit cards/loans (apart from mortgage)?

Doesn't sound too good if you have to rely on a new credit card to buy a flight.

chuckley

lauraza wrote: »

Hi everyone,

I'm new to credit cards and need some advice about my application for HSBC's 0% for 12 months card. Applied online and was immediately declined, have checked my score with Experian prior to application and score was 850 (out of 1000) which I thought was ok. I am a homeowner, with no late payments[b/] etc, have been with my employer 6 months (could this be it?), and moved house just under 2 years ago. Really desperate for a credit card as my partner is living in New Zealand for the next 6 months and need to book a flight out to see him!

How long would people recommend waiting until I re-apply with them or another bank?

Thank for reading and I hope some of you more experienced credit card users could advise!

u wont make them money...

lauraza

Hi,

Thanks for all your replies much appreciated. Forgot to mention I am on the electoral roll, I don't have any store cards/loans/other credit cards.

With regards to now making them any money, my mum successfully applied to both Halifax and HSBC about 6 months ago, and she is in an even more secure financial position than me!

Any ideas welcome!
Laura

NickX

chuckley wrote: »

u wont make them money...

Hmmm I am not convinced about this.

There have been lots of posts about people being declined credit or having their credit facility withdrawn (161000 Egg customers), and it is suggested that these people are being refused because they do not make the credit card companies enough money.

But, they DO make the credit card companies money. Even if they pay their bills off in full and pay no interest, the credit card companies still make money on each transaction via the merchant fees. Only if the person has a card but never uses it can I see it making the company a loss, and surely in this case it wouldn't be a problem if the facility was removed.

Despite all their moaning about people defaulting and reclaiming unfair charges, credit card companies still make millions - do not lose a second of sleep over them, they are the modern equivalent of !!!!!! Turpin except that they take from the poor and give to the rich.

CLAPTON

lauraza wrote: »

Hi,

Thanks for all your replies much appreciated. Forgot to mention I am on the electoral roll, I don't have any store cards/loans/other credit cards.

With regards to now making them any money, my mum successfully applied to both Halifax and HSBC about 6 months ago, and she is in an even more secure financial position than me!

Any ideas welcome!
Laura

if you dont have any credit cards already then thats probably why you were rejected... the best CC usually demand that you already have one so they can check you have managed it well.

So its best you apply for any old CC ... say one with your bank or even barclaycard initial, vanquis etc... appalling interest rates but if you use it regularly and pay it full it will build up your credit rating.

Once you have established your credit record then apply for a 0% BT or cash back card.

Martinslovechild

Agreed.

It sounds like your lack of credit history that's causing your current application problems, rather than a chequered past.

Try one of the other banks. As you're flying to New Zealand, I'm tempted to recommend the Post Office Credit Card (which is administered by Bank Of Ireland) as they don't charge any foreign transaction fees (normally around 2.75% for nearly every other card issuer).

In addition, they're currently offering 0% on purchases for the first 3 months, which will allow you to purchase the ticket straightaway and then give you a bit of breathing space to repay the amount (although don't forget that you'll still need to pay a minimum payment each month).

Further details at http://www.postoffice.co.uk/

P.S. If you apply through TopCashback (http://www.topcashback.co.uk/retailerdetailPost_Office.htm), you'll also receive £20.50 cashback if your application is successful!

nickmack

NickX wrote: »

But, they DO make the credit card companies money. Even if they pay their bills off in full and pay no interest, the credit card companies still make money on each transaction via the merchant fees. Only if the person has a card but never uses it can I see it making the company a loss, and surely in this case it wouldn't be a problem if the facility was removed.

They do make money from Merchant Fees but they would much rather have the credit available to someone who will make them more by paying interest.

For the OP, a lack of credit history could be the issue, try the bank your wages get paid into for a CC.

lauraza

That's great thatnks for the feedback, usually bank with Halifax so I'll consider giving them a go, fingers crossed.