Why was I turned down?

clio

thats not the point mr jones.

smcpeake

When I worked for a bank a few years ago, customers were advised to contact Experian or whichever reference company being used - it only costs a pound or two. This will give you detail. Most people are turned down because they aren't on the electoral roll, previous bad debt on their address, you may not have been at your address long enough, you have had too many credit searches done recently. Everytime you apply for credit and a search is carried out , your rating is affected so choose wisely. There are many reasons but it may be something simple.:D

ferry

smcpeake wrote: »

When I worked for a bank a few years ago, customers were advised to contact Experian or whichever reference company being used - it only costs a pound or two. This will give you detail. Most people are turned down because they aren't on the electoral roll, previous bad debt on their address, you may not have been at your address long enough, you have had too many credit searches done recently. Everytime you apply for credit and a search is carried out , your rating is affected so choose wisely. There are many reasons but it may be something simple.:D

But still not one conclusive answer.
I agree that this leaves it open to fraud,but is it not up to the creditor to pre determine a fraudulent application-i.e have the 'right' security measures in place before agreeing to credit?

I make an application for credit,am turned down,they tell me why then I go and 'repair' my problem.I then re apply for credit to the same company,hopefully successfully.
What is it about that proceedure that rings fraudulent bells?

Scousebird_2

To be honest I would always say that contacting a CRA is the 1st thing any1 should do after a declined application. On most occasions, if a bank turns someone down-the reason is not always apparent to the person who completes the application, the decision tends to be very vague as the system is the one that makes the decision and looks at the overall picture. Simple things like having your name on the electoral register and being resident at an address for longer than 6 months can help with applications, making sure that you don't have an financial associates that can be dragging your file down (such as people you share joint accounts with or people in your household with the same surname-this can sometimes show up as adverse credit if Mr Stephen Jones and Mr Sam Jones live at the same address)-this can sometimes make an application refer for investigation so always be aware of credit on a household.

Making sure that you don't have too much AVAILABLE credit facilities that you are not using and cards just lying there doing nothing-if they're doing nothing, CLOSE THEM because lenders can see how much available credit you have and this can sometimes affect their decision to offer you the extra. And making sure that all credit accounts are in the same address (we all sometimes forget to change one thing when we move home, just make sure it's not your addresses for credit as this can cause suspicion)

The list is endless to be honest of what can and can't affect someones ability to get credit-but usually. if a person is declined and they are truely honest with themselves. deep down, most people can answer their own questions!

robert_harper_2000

Well I have been with Egg for years and paid off in full every month not missed one payment. I'm a director of a well established business. I earn a modest income and only asked for £2k ... I asked elsewhere and was offered £3k straight away - but I want the Egg cashback... perhaps credit crunch is tightening?

Thanks though for your tips!

King_Weasel

OK, lots of possible reasons for rejection, and the issuer won't tell us precisely.

But can we at least knock one reason on the head? It's one that often comes up on here, and I suspect it's NEVER a reason in practice. But I'd like someone more in the know to confirm it.

It's the one that goes "They don't want me because I always settle in full every month and so they won't make money out of me." Surely, the issuer WILL happily make money out of them through commission on the transactions? So no issuer will decline an application for this reason?

jonesMUFCforever

King Weasel I agree 100% wit you.
People who pay up in full each month are the bread and butter income for these cards (the % of each £ you spend) no cost in chasing up bad debt etc.
Yes they make more money out of people who don't pay up in full but at the end of the day they are not 100% certain that they will ever see their money repaid back in full.

bethanyrayne

jimbo26 wrote: »

Because fraudsters will know what their criteria is and use this info to make fraudulent applications, is one reason.

You're right... I would

robert_harper_2000

That is what I thought however I remember Egg in particular closing peoples accounts who weren't really a risk - but gave the impression they didn't make enough money out of them- perhaps commission isn't quite enough?

King_Weasel wrote: »

OK, lots of possible reasons for rejection, and the issuer won't tell us precisely.

But can we at least knock one reason on the head? It's one that often comes up on here, and I suspect it's NEVER a reason in practice. But I'd like someone more in the know to confirm it.

It's the one that goes "They don't want me because I always settle in full every month and so they won't make money out of me." Surely, the issuer WILL happily make money out of them through commission on the transactions? So no issuer will decline an application for this reason?

Gillianh2

Scousebird wrote: »

To be honest I would always say that contacting a CRA is the 1st thing any1 should do after a declined application. On most occasions, if a bank turns someone down-the reason is not always apparent to the person who completes the application, the decision tends to be very vague as the system is the one that makes the decision and looks at the overall picture. Simple things like having your name on the electoral register and being resident at an address for longer than 6 months can help with applications, making sure that you don't have an financial associates that can be dragging your file down (such as people you share joint accounts with or people in your household with the same surname-this can sometimes show up as adverse credit if Mr Stephen Jones and Mr Sam Jones live at the same address)-this can sometimes make an application refer for investigation so always be aware of credit on a household.

I thought that it didnt matter if you had the same surname as someone with bad credit in a household so long as you dont have any Joint Financial link with them.
Maybe that is causing my prob as my DS has a one bad debt from his student days (which he is paying and trying to clear) could that be contributing to me being turned down for credit?