Being declined for a credit card

FeFiDoh

FeFiDoh

FeFiDoh

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Joined
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Swindon
I already have a Natwest credit card which I've held for around a year probably longer than that now.

Looking through MSE discovered the Tesco card which offers 0% for 13 months so thought may as well change and make most of that.

Applied over the Christmas period and hadn't heard from them so I decided to give them a call, turns out it was declined and the letter hadn't arrived yet.

Using the Quidco offer on Credit Expert I checked through my details and all looks perfect, after talking to Tesco today I decided to pay the extra £5.95 and get a score.

Out of a possible 999 score I have...... 999! :s

It clearly states I have nothing going against me.

She did state that time at address, time in employment, score and few other random factors can be counted in.

I've worked for the last 4 years bar a 2 month gap due to change of jobs, lived at current address for 19 months.

If I apply and it gets declined, or even apply does this count against me?
Sainsburys do a 12 month 0% card I might try instead now but don't want to be declined over and over.

I have used the card regularly and made some large(ish) purchases on it since I've had it.

Part of me feels its because I am a low risk user so they stand to make nothing from it.
 
Do all your addresses on all your accounts match, I keep moving house and keep forgetting to move over less or not used accounts (you can check in your credit expert report, where the address is registered at) and get declined for this reason alone, even though everything else is great.
 
Deadbeat said:
That's the most likely explanation, in my ignorant opinion. Do you use your current card often?
Click to expand...

This.

Card companies also like to see how well you pay off any debts you have. If you don't use the card often, they have nothing to look at and no evidence that you are a good payer. It's a risk for them.
 
I do use the card at least once a month on something.

Only have accounts with Natwest :

Current account
Savings
ISA

so when I have moved only notified them.

I tend to buy something at the start of the month and then pay it off over the next 3-4 weeks so its paid by the end.
 
Most credit companies have their own criteria for supplying credit terms. Even though you have a good score according to one system, it may not be he same for the system tesco use.
 
Strange as my score came back as 999 and Tesco accepted me :confused:
As above have you forgot to change addresses on things?
If you haven't used your other card a great deal or had other things then it might be that there isn't enough to show how well you pay other debts off.
Personally ive used home shopping catalogues, store cards, had a 5 year loan and paid it off in about 2.5 years so I have a lot on my history to show them.
 
These things are complete voodoo sometimes. A few years ago I lost my wallet, containing about 50k of available credit across half a dozen cards, and went in to the Halifax to ask for a £50 overdraft to tide me over until payday. They flat out refused, but said they could approve a £5000 loan instead and I'd have the money in my account that day. :confused: I wanted to buy a loaf of bread, not a new car ffs.
 
thelonecrouton said:
and went in to the Halifax to ask for a £50 overdraft to tide me over until payday. They flat out refused, but said they could approve a £5000 loan instead and I'd have the money in my account that day. :confused: I wanted to buy a loaf of bread, not a new car ffs.
Click to expand...

i had the same thing happen to me with natwest, funnily enough. (didn't lose my wallet though, i just didn't have a credit card at the time)
 
The credit score you are mentioning is an example credit score sold by Experian in order to make money. It is just their estimate of how credit scoring might work, and in no way matches what banks use.

When you apply for a credit card banks are looking to see that you will be a satisfactory customer. They don't decline anyone for being low risk. However if you show that you only pay the minimum payment on the card then it's an indication that you may be financially stretched.

They may decline you if you aren't paid monthly, or if you filled out the application wrong, or if you're a student (even if you are earning). They may decline you if you aren't on the electoral register at your address. Or if you don't have a history on the electoral register. They may decline you if your bank doesn't share positive information. They may decline you for moving around often, or changing josb often, they may decline you for having the wrong type of job, or being unmarried with children. All of those factors combine to make your credit score, and banks weight them in different ways. For example if you're paid weekly and young, and have no credit history and aren't on the electoral roll then you can forget most credit.

As for Halifax declining you the reason is simple, they don't get any points towards their bonus if you take an overdraft, they do if they sell you a loan. However you should have an overdraft facility arranged in advance, so that if something happens you have it there to use.
 
The main reason people get declined is either not being listed on the electoral register or the address on the register doesn't match. You can have alternative addresses listed as my flat block has a redundant name which doesn't appear on the postal records so I have both:

Flat Number, Flat Block Name, Road etc
and just
Flat Number, Road etc

listed for me.
 
Perhaps for that particular card - your rating might be too good - i.e. they don't want to lend you the money because they know you'll pay it back without much interest. :p
 
Still related - what does it mean by "third party withdrawal" as being their reason when being declined for a credit card? That was years ago, 2004, when I got fobbed off with that meaningless reason. I applied again 1 year later, 2005, same provider, and I was accepted. I was still living and working at the same place as 2004.
 
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