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  • FIRST POST
    • ehdx
    • By ehdx 10th May 18, 10:37 AM
    • 33Posts
    • 13Thanks
    ehdx
    Pre approved HERE but then denied credit
    • #1
    • 10th May 18, 10:37 AM
    Pre approved HERE but then denied credit 10th May 18 at 10:37 AM
    Hi All


    I was wondering if anyone has been in a similar situation to this and could give me so advice.


    I recently did a credit card comparison on this site and was told that I was 'pre approved' for one of the cards. 100%. The writing underneath explained that I would be accepted for this particular card so I applied.


    It made sense that I would be accepted as my credit score is excellent, I always make my monthly payments, and other that one other credit card I have no other debt. (This was going to used for a balance transfer)


    Anyway, I had an email this morning saying that it had been denied! I'm quite shocked and a bit annoyed as all the information I gave before being pre approved was correct and up to date and if I'd of thought I wouldn't have been approved I would have never applied for the card!


    Now my problem is it's quite important that I do get another card because I need to do a balance transfer on my current one before the interest goes sky high.


    Has anyone been in a similar situation?
    Debt Free Wannabe
    18,143.39|3,200.00

Page 2
    • zx81
    • By zx81 10th May 18, 1:40 PM
    • 19,651 Posts
    • 21,037 Thanks
    zx81
    Credit scores like stability and dislike change, whether that change is good or bad.

    Lenders on the other hand, like low risk and good change.
    • Gary_Dexter
    • By Gary_Dexter 10th May 18, 2:09 PM
    • 2,755 Posts
    • 1,563 Thanks
    Gary_Dexter
    Is the score not based on payment history?
    Originally posted by ehdx
    No. It's based on the phase of the moon and the smell of the wind at high tide on Brighton Beach.

    They're based on nothing.
    • ehdx
    • By ehdx 10th May 18, 2:38 PM
    • 33 Posts
    • 13 Thanks
    ehdx
    No. It's based on the phase of the moon and the smell of the wind at high tide on Brighton Beach.

    They're based on nothing.
    Originally posted by Gary_Dexter

    Why are they there then?
    Debt Free Wannabe
    18,143.39|3,200.00

    • spadoosh
    • By spadoosh 10th May 18, 2:46 PM
    • 5,927 Posts
    • 8,190 Thanks
    spadoosh
    Why are they there then?
    Originally posted by ehdx
    Have a read through this.

    https://www.moneysavingexpert.com/loans/credit-rating-credit-score

    Basically its a way for them to make money.
    Don't be angry!
    • ehdx
    • By ehdx 10th May 18, 3:14 PM
    • 33 Posts
    • 13 Thanks
    ehdx
    Have a read through this.

    https://www.moneysavingexpert.com/loans/credit-rating-credit-score

    Basically its a way for them to make money.
    Originally posted by spadoosh

    Thank you - that's so much more helpful than just a sarcastic comment!
    Debt Free Wannabe
    18,143.39|3,200.00

    • stehouk
    • By stehouk 10th May 18, 5:41 PM
    • 194 Posts
    • 78 Thanks
    stehouk
    It may be that you have had dealings with them in the past or mbna when you had debt ? i applied for an mbna card and was asked to ring them to confirm a few things and it was then they informed me that i had dealings with them in the past via virgin money, something i didn't know about. they did give me the card though.

    I think i would be a bit annoyed if i had been pre-approved 100% for the card and then declined after applying, it hasn't happened to me but i haven't always got the length of deal on offer or i've been offered a lower credit limit.but not actually refused.
    Last edited by stehouk; 10-05-2018 at 5:56 PM.
    • maxximus75
    • By maxximus75 10th May 18, 7:23 PM
    • 162 Posts
    • 56 Thanks
    maxximus75
    It could just boil down to based on your credit profile you are just not the kind of customer they are interested in (at the moment). They are looking to make the most profit they can out of a customer. If they don't think they will then they can simply decline your application.

    It doesn't mean that another company doesn't want your business. There are lot's of others out there to choose.

    If you havn't made many applications for credit in the past then try another. I find that card providers that have their own eligibility checkers on their websites seem to be more reliable.

    As previously mentioned, make sure the details you submit match your credit file... such as name spellings, address matching etc

    Good luck with your quest!
    • Samsung_Note2
    • By Samsung_Note2 14th May 18, 11:35 AM
    • 699 Posts
    • 328 Thanks
    Samsung_Note2
    Thank you so much for posting this. You're the only person that has properly read my post!
    I only asked if people had been in a similar situation before.


    Did you wait before applying for another credit card? I've contacted Virgin so just waiting to see if I get a response.
    Originally posted by ehdx

    I've had other credit products since Cap1 declining...bizarre thing is they actually sent me a cheque for 25 as a formal apoligy for messing me about.

    Ive banked the cheque as i advised i would and also advised id carry the complaint onto Ombudsman as i feel they need to be open about why they decline,after all if you know the reason for decline you then have a chance to fix what ever the problem is...why do they need to with hold the information.
    Its really rather simple...I cant spell and your a Bully..Hang your head in shame.
    • zx81
    • By zx81 14th May 18, 11:37 AM
    • 19,651 Posts
    • 21,037 Thanks
    zx81
    why do they need to with hold the information.
    Originally posted by Samsung_Note2
    To reduce fraud and to protect confidential lending criteria.
    • Candyapple
    • By Candyapple 14th May 18, 1:57 PM
    • 2,969 Posts
    • 2,352 Thanks
    Candyapple
    Have you checked your info is correct across all 3 CRAs?

    The free versions to check your credit files are below:
    Experian: www.moneysavingexpert.com/creditclub
    Equifax: www.clearscore.com
    Call Credit: www.noddle.co.uk
    I'm a Board Guide on the Credit Cards, Loans, Credit Files & Ratings boards. I'm a volunteer to help the boards run smoothly, and I can move and merge threads there. Any views are mine and not the official line of moneysavingexpert.com
    • Samsung_Note2
    • By Samsung_Note2 15th May 18, 8:40 AM
    • 699 Posts
    • 328 Thanks
    Samsung_Note2
    To reduce fraud and to protect confidential lending criteria.
    Originally posted by zx81
    Yes i do appreciate that..however like in my case im pretty sure they eventualy refused the application as they as a CRA (all be it a free version) was reporting the wrong information,and they also use that same information to credit check you..lol (They were the ONLY company that fluffed the information..even the firm they get data from had it correct.

    So while i can pretty much work out why i was declined and thank the lord i was,people should be told "Too many searches or income to low ect ect and that way they can work on correcting what ever the issue,even if its we dont want you as a customer.

    Yes maybe the above is a bit simplistic but would help people understand what areas need improving.
    Its really rather simple...I cant spell and your a Bully..Hang your head in shame.
    • zx81
    • By zx81 15th May 18, 8:54 AM
    • 19,651 Posts
    • 21,037 Thanks
    zx81
    But again, it's confidential.

    And risk scoring isn't as simple or or linear as people think. Not being on the ER may be a reason for decline, unless you're under 21, when it's not seen as a key risk criteria.

    Or you have one default , which wouldn't normally be a reason for decline, but you're also a car mechanic which is one of the lender's highest risk occupations. However, if you were a homeowner, we'll overlook that, unless you're under 25, where we won't.

    Few decisions would be simple enough to explain in criteria which aren't confidential, and in today's market, customers aren't prepared to pay for that sort of personalised service anyway. Particularly as the customers are paying for non customers.

    I get that it's frustrating, but there is no simple answer.
    • Samsung_Note2
    • By Samsung_Note2 21st May 18, 1:36 PM
    • 699 Posts
    • 328 Thanks
    Samsung_Note2
    But again, it's confidential.

    And risk scoring isn't as simple or or linear as people think. Not being on the ER may be a reason for decline, unless you're under 21, when it's not seen as a key risk criteria.

    Or you have one default , which wouldn't normally be a reason for decline, but you're also a car mechanic which is one of the lender's highest risk occupations. However, if you were a homeowner, we'll overlook that, unless you're under 25, where we won't.

    Few decisions would be simple enough to explain in criteria which aren't confidential, and in today's market, customers aren't prepared to pay for that sort of personalised service anyway. Particularly as the customers are paying for non customers.

    I get that it's frustrating, but there is no simple answer.
    Originally posted by zx81

    Just for the record...yes fully agree..

    However...you knew there was a But coming..lol

    What about those who already hold an account with them..they must fit the criteria to hold a card and lets assume the account is ran in good order.

    Appreciate the answer is still going to be the same...there decision based on the info they hold.

    Just doesn't make any business sense to me,just after they declined my second card Vanguish increased my limit by 1000 and Barclaycard just upped my limit for 3500 to 5000.

    I guess in simple terms its insulting to be declined by a sub prime lender just as it would be if the fat bird down the pub,the one with dirty white shoes and leggings that are 3 sizes to small declined your advances...
    Its really rather simple...I cant spell and your a Bully..Hang your head in shame.
    • WillyWonga
    • By WillyWonga 22nd May 18, 12:05 PM
    • 318 Posts
    • 181 Thanks
    WillyWonga
    Having worked in a bank there were only a select few who had access to the lending criteria and each bank will target their own market.

    Eg. Gets to the end of the month and had target of 2000 new card applicants accepted yet only 1000 accepted - tweek the lending criteria to accept more people.

    Vice versa 1900 applied so tighten the score to slow down accepted people.

    Some banks like risk - credit history shows takes cash withdrawals on credit cards and utilisation is high - chance to make money. etc etc

    You could be a 999 Experian Credit Score but on the banks own lending criteria who could be rated a 666!!! Not because of bad history but because of how much you match their profile.

    One bank will decline you, one bank will accept.

    Dont forget like all comparison sites the site which you go through whether it be MSE, moneysupermarket etc etc will receive a financial reward for passing business their way from the card lender. Are they truly independent comparison sites??????
    • Chrysalis
    • By Chrysalis 1st Jun 18, 8:55 PM
    • 2,222 Posts
    • 1,058 Thanks
    Chrysalis
    I think the OPs point is "pre approved 100%" is misleading and he has a valid point.
    • John_Jones
    • By John_Jones 1st Jun 18, 9:15 PM
    • 142 Posts
    • 361 Thanks
    John_Jones
    I've contacted Virgin Money and asked for more information as I'd like to know the specific reasons because I can't find anything so far on my credit history that would go against me.
    Originally posted by ehdx
    They are under no obligation to explain to you, and are very u likely to choose to do so.

    You need to remember, this is akin to demanding that a prospective partner who turned you down explains exactly why. They have the right to say no to you and then tell you nothing further.
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