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  • FIRST POST
    • arthur715
    • By arthur715 20th Mar 18, 4:20 PM
    • 22Posts
    • 3Thanks
    arthur715
    Refused Limit Increase But Won't Say Why
    • #1
    • 20th Mar 18, 4:20 PM
    Refused Limit Increase But Won't Say Why 20th Mar 18 at 4:20 PM
    I've had my current credit card for 2 years and want to book a holiday that would take me over my limit. Most of my monthly expenditure is by credit card and I pay off the balance every month by direct debit. I have never defaulted on a payment. My Experian credit score is 999 (the maximum possible).

    I applied for a credit limit increase and was refused BUT my main issue is that they will not tell me WHY because of the "sensitive nature" blah, blah, blah.

    What is so sensitive about telling ME why they won't increase MY credit limit?
Page 2
    • bazzyb
    • By bazzyb 22nd Mar 18, 1:39 PM
    • 1,213 Posts
    • 3,286 Thanks
    bazzyb
    Such are the consequences of everything being done online and the decline of the 'bank manager' who once could actually decide such things but is nowadays little more than a glorified salesperson.
    Originally posted by arthur715
    Interestingly, under the forthcoming GDPR regulations, if you are declined using an automated process, you will have the right to request that a manual decision is made... But that doesn't mean that the decision will change, and it doesn't mean that they will give a reason for the decline or disclose their confidential policies etc.
    • arthur715
    • By arthur715 22nd Mar 18, 1:43 PM
    • 22 Posts
    • 3 Thanks
    arthur715
    Are you retired? At 60 if you are retired your income could be considered low for an 8k limit. Just a guess as you have not said.

    Savings do not count for much if the decision is credit based.

    The bank will likely use a credit reference agency as part of the decision so will already know that part.

    Perhaps they have a policy of maximum limits for certain types of customer.
    Originally posted by Herbalus
    Yes, I've been retired for 11 years and have had no income all that time (only started drawing one of my pensions last year). In all that time I've spent around 20k per year on my credit cards, always paying off the balance in full every month by direct debit. How do they think I managed to do that if I'm not a good credit risk? LOL

    I seem to have fallen into limbo-land. I was retired for 10 years without drawing a pension, I'm not working but am not unemployed and have never signed on for any benefits, I've been living off my savings but no lenders seem to recognise such a thing.

    Yes, I'm sure I don't 'fit' their policies - in fact, in this case I know for sure, because they've refused a credit increase. Yet it's quite possible I would 'fit' another lender's policies, but how can I find out without making loads of different applications? (and probably reduce my credit score as a result!).

    I guess they only cater for the masses and can't cope with anyone they can't pigeonhole.
    • arthur715
    • By arthur715 22nd Mar 18, 1:47 PM
    • 22 Posts
    • 3 Thanks
    arthur715
    Interestingly, under the forthcoming GDPR regulations, if you are declined using an automated process, you will have the right to request that a manual decision is made... But that doesn't mean that the decision will change, and it doesn't mean that they will give a reason for the decline or disclose their confidential policies etc.
    Originally posted by bazzyb
    I'd not heard about that, thanks. Sounds like a step in the right direction, as long as they really do have a sensible process for manual decisions.
    • zx81
    • By zx81 22nd Mar 18, 1:49 PM
    • 18,599 Posts
    • 19,850 Thanks
    zx81
    They need to give you the opportunity to opt of automated decision making - but they don't need to manually assess.

    In most cases, they won't, due to the high costs of manual intervention.
    • arthur715
    • By arthur715 22nd Mar 18, 2:08 PM
    • 22 Posts
    • 3 Thanks
    arthur715
    I suspect you're right. I probably don't meet their target market so why should they bother?

    Still frustrating though.
    • shortcrust
    • By shortcrust 22nd Mar 18, 2:16 PM
    • 2,105 Posts
    • 3,217 Thanks
    shortcrust
    Another thread that essentially boils down to dont they know who I am?
    • Gary_Dexter
    • By Gary_Dexter 22nd Mar 18, 2:26 PM
    • 2,077 Posts
    • 1,167 Thanks
    Gary_Dexter
    Interestingly, under the forthcoming GDPR regulations, if you are declined using an automated process, you will have the right to request that a manual decision is made... But that doesn't mean that the decision will change, and it doesn't mean that they will give a reason for the decline or disclose their confidential policies etc.
    Originally posted by bazzyb
    What's your source for this?
    • arthur715
    • By arthur715 22nd Mar 18, 2:30 PM
    • 22 Posts
    • 3 Thanks
    arthur715
    Another thread that essentially boils down to dont they know who I am?
    Originally posted by shortcrust

    Clearly they don't
    • Samsung_Note2
    • By Samsung_Note2 22nd Mar 18, 2:41 PM
    • 556 Posts
    • 223 Thanks
    Samsung_Note2
    Clearly they don't
    Originally posted by arthur715
    Well as long as you feel important then thats all that matters..sadly the Bank live in the real world.

    You Sir remind me of oh whats his name..thats chubby bloke used to be on TV and then kinda drifted away,he thought he was important comic,funnily enough cant rember the old duffers name.

    Take Care

    Nationwide.
    If my appalling spelling offends you that much...dont read my posts.
    • arthur715
    • By arthur715 22nd Mar 18, 3:01 PM
    • 22 Posts
    • 3 Thanks
    arthur715
    Sheesh. Talk about a sense of humour failure.
    • PeacefulWaters
    • By PeacefulWaters 22nd Mar 18, 4:58 PM
    • 8,318 Posts
    • 10,670 Thanks
    PeacefulWaters
    Of course they can choose, I have no problem with that. I just think it's fair for them to explain their decision, that's all.

    As for encouraging fraud, I could understand that if the applicant had no history with the lender but in my case they have 40 years of history with me and they know I've never mis-managed my finances in all that time - or they should know, but of course it's more a case of 'computer says no' and no one in their company really knows or cares why.

    Such are the consequences of everything being done online and the decline of the 'bank manager' who once could actually decide such things but is nowadays little more than a glorified salesperson.
    Originally posted by arthur715
    In fairness, I don't think bank branch managers have ever made credit card decisions.

    And default levels dropped when they stopped making personal lending decisions where I worked.
    • lookstraightahead
    • By lookstraightahead 23rd Mar 18, 7:41 AM
    • 401 Posts
    • 377 Thanks
    lookstraightahead
    My husband owns his own business and I am a maths teacher and work on a contract basis. We earn a really good salary but don!!!8217;t tick all boxes either and I miss out big time. Actually I have never ticked your average box. If you do not mind me saying this is quite a minor hiccup for you in the grand scheme of things. You know you are a safe bet but they do not.
    • Herbalus
    • By Herbalus 23rd Mar 18, 8:50 AM
    • 2,106 Posts
    • 1,741 Thanks
    Herbalus
    Yes, I've been retired for 11 years and have had no income all that time (only started drawing one of my pensions last year). In all that time I've spent around 20k per year on my credit cards, always paying off the balance in full every month by direct debit. How do they think I managed to do that if I'm not a good credit risk? LOL

    I seem to have fallen into limbo-land. I was retired for 10 years without drawing a pension, I'm not working but am not unemployed and have never signed on for any benefits, I've been living off my savings but no lenders seem to recognise such a thing.
    Originally posted by arthur715
    Unfortunate. These days you need to show that your income matches your outgoings. Spending your savings is unsustainable you see (computer not recgonising that when savings run out, sensible people start work again/ get an income or stop spending).

    Funnily enough they wont cancel what your already have, but wont allow an increase. That is my bet.

    Think of the mortgage kafuffle recently. People paying 4% apply for 2% remortgage are refused because their stressed income cant afford repayments. Go figure. Theyre already paying 4%.
    • arthur715
    • By arthur715 27th Mar 18, 12:20 PM
    • 22 Posts
    • 3 Thanks
    arthur715
    In fairness, I don't think bank branch managers have ever made credit card decisions.
    Originally posted by PeacefulWaters
    Probably not, but my point was in the good old 'Mr Mainwaring' days, a bank manager had considerably more status than today, knew their customers better and had more influence on banking decisions. These days, it's all done by software and people hardly ever go into a bank in the first place.

    Times change I guess.
    • arthur715
    • By arthur715 27th Mar 18, 12:26 PM
    • 22 Posts
    • 3 Thanks
    arthur715
    My husband owns his own business and I am a maths teacher and work on a contract basis. We earn a really good salary but don!!!8217;t tick all boxes either and I miss out big time. Actually I have never ticked your average box. If you do not mind me saying this is quite a minor hiccup for you in the grand scheme of things. You know you are a safe bet but they do not.
    Originally posted by lookstraightahead
    Yes, if you're not 'average' these days then you're often not the sort of customer they want. You're right that's it's a minor hiccup in the grand scheme of things, but squeezing every last penny out of our finances is what this site is supposed to be all about, so it's interesting that some posters seem hostile to that notion if you don't happen to fit their preconceived views and are therefore deemed to be unworthy. What's that old saying about looking after the pennies and the pounds will look after themselves . . . ?
    • MABLE
    • By MABLE 27th Mar 18, 12:33 PM
    • 3,611 Posts
    • 1,889 Thanks
    MABLE
    Probably not, but my point was in the good old 'Mr Mainwaring' days, a bank manager had considerably more status than today, knew their customers better and had more influence on banking decisions. These days, it's all done by software and people hardly ever go into a bank in the first place.

    Times change I guess.
    Originally posted by arthur715
    They most certainly did. I had my first bank with Lloyds in 1984 and I wanted an overdraft. However the managers sub said the bank manager did not like me and therefore the request was declined.

    Thank goodness we now have a fairer system in credit scoring. However in your case this is debatable.
    • arthur715
    • By arthur715 27th Mar 18, 12:43 PM
    • 22 Posts
    • 3 Thanks
    arthur715
    Unfortunate. These days you need to show that your income matches your outgoings. Spending your savings is unsustainable you see (computer not recgonising that when savings run out, sensible people start work again/ get an income or stop spending).
    Originally posted by Herbalus
    Thing is, what's the point of having savings if you don't spend them? Sure, a 'safety net' for unforseen events is always a good idea but what about anything beyond that?

    Imagine you are already debt-free and win, say, 500k on the lottery. Would you just save all that and carry on working as normal or would you give up working and treat it as 'income'? At, say, 30k per year that's nearly SEVENTEEN years of 'income' - more with interest. At 50 years of age that's a pretty good basis for early retirement before the pension plans kick in!

    But I take your point that the banks are not interested in such 'non-average' cases.

    Funnily enough they wont cancel what your already have, but won!!!8217;t allow an increase. That is my bet.
    Originally posted by Herbalus
    Indeed. Actually, I used to have two Halifax CCs both with around 15k limits. I stopped using them when they stopped paying cashback and after a couple of years they reduced my credit limit to 75 because I was 'not using them enough'. So I cancelled them - hence why I'm trying to increase my new card's limit.


    Think of the mortgage kafuffle recently. People paying 4% apply for 2% remortgage are refused because their stressed income cant afford repayments. Go figure. Theyre already paying 4%.
    Originally posted by Herbalus
    Yes, I had a friend in that situation a few years ago. Crazy! Mind you, my home buying dates back to the early 1980s so I remember 10, 12 % being the norm and even spikes to 15%. Amazing now that we somehow managed!
    • arthur715
    • By arthur715 27th Mar 18, 12:47 PM
    • 22 Posts
    • 3 Thanks
    arthur715
    They most certainly did. I had my first bank with Lloyds in 1984 and I wanted an overdraft. However the managers sub said the bank manager did not like me and therefore the request was declined.

    Thank goodness we now have a fairer system in credit scoring. However in your case this is debatable.
    Originally posted by MABLE
    Ouch! That's a good point. Perhaps a less 'emotional' system is fairer overall?
    • Chrysalis
    • By Chrysalis 29th Mar 18, 2:46 PM
    • 2,219 Posts
    • 1,058 Thanks
    Chrysalis
    Anti fraud is the most likely reason they wont give you a proper answer why you was refused.
    • arthur715
    • By arthur715 13th Apr 18, 8:49 PM
    • 22 Posts
    • 3 Thanks
    arthur715
    Anti fraud is the most likely reason they wont give you a proper answer why you was refused.
    Originally posted by Chrysalis
    . . . or the most likely excuse
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