1. This site uses cookies. By continuing to use this site, you are agreeing to our use of cookies. Learn More.

Education Credit card refusal.

Discussion in 'General' started by Kronos, 20 Aug 2014.

  1. Kronos

    Kronos Multimodder

    Joined:
    6 Nov 2009
    Posts:
    13,495
    Likes Received:
    618
    I decided a couple of days ago to apply for a credit card or rather to move my current card. I decided to apply for a card from my own bank and duly filled out the form. At 02:10 this morning I received an email turning down my application.

    OK fair enough but what I found annoying that the email did not give any specifics as to why my application was refused.

    I am currently not working but have never missed a payment in tge 15 years or so I have had the card and my current debt on the card is around £400 and my limit is £8000.

    My question is am I entitled to be told the specifics of why my application has been turned down? Perhaps they are something I can work on but if I do not know what they are then that becomes impossible.

    A second question is: Is there some website somewhere that explains the various terminology used in the banking world particularly where it relates to credit cards? I found it most baffling trying understand, balance transfers, 0 rate on purchases etc etc. OK they are probably not the best examples but they are what immediately spring to mind at this time of the day.
     
  2. Ljs

    Ljs Modder

    Joined:
    4 Sep 2009
    Posts:
    2,234
    Likes Received:
    117
    When I was looking at credit cards years ago, I found money http://www.moneysavingexpert.com to be very useful at explaining everything and what suited my needs (and the best cards to apply for).

    Can't help with the specifics of the refusal though.
     
  3. adam_bagpuss

    adam_bagpuss Have you tried turning it off/on ?

    Joined:
    24 Apr 2009
    Posts:
    4,282
    Likes Received:
    159
    the rejection will likely boil down to "not working" and therefore you have no way to repay the debt.

    I would say that the best chance of a card would be your current bank as they will have the most history on you but this is the route you have already tried.

    you could try elsewhere as there are 3 credit companies that check your score ultimately so refusal from one may not automatically mean refusal from the others.
     
  4. Landy_Ed

    Landy_Ed Combat Novice

    Joined:
    6 May 2009
    Posts:
    1,428
    Likes Received:
    39
    sign up for the free trial of creditexpert.com, it will help a lot. Just remember to cancel it before the month expires.
     
  5. veryevil

    veryevil Minimodder

    Joined:
    14 Aug 2005
    Posts:
    1,228
    Likes Received:
    34
    I've been told about Noddle.co.uk who give free credit checks. Haven't used them myself although I am going to.
     
  6. Kronos

    Kronos Multimodder

    Joined:
    6 Nov 2009
    Posts:
    13,495
    Likes Received:
    618
    Thanks but I am more interested in the answer to my question "am I entitled to be told the specifics of why my application has been turned down?"

    All I am doing is trying to save money by switching. I have no problem repaying the small debt I have and as my credit limit of 8000 grand has not been lowered then obviously the issuing bank is happy with my situation.

    I think I have tried "Creditexpert.com" (Experian) albeit some years ago and once you have taken advantage of the free month you cannot do it again.

    I think I will write to the bank any and see what company policy is but it seems odd to turn some one down without giving specific reasons.
     
  7. Corky42

    Corky42 Where's walle?

    Joined:
    30 Oct 2012
    Posts:
    9,648
    Likes Received:
    388
    The only right you have with regards to being told why they refused is if it was because of a problem with your credit file, and if so what company they used to check your credit file.

    You can ask for more details but they are not obliged to provide an explanation.
     
  8. Pookie

    Pookie Illegitimi non carborundum

    Joined:
    4 May 2010
    Posts:
    3,565
    Likes Received:
    172
    I looked at them but is it normal for a credit check site to want all of you Debit Card details? Including the 3 digit security code?
     
  9. Cei

    Cei pew pew pew

    Joined:
    22 Mar 2008
    Posts:
    4,714
    Likes Received:
    122
    This is why you were turned down. Credit is offered based on your circumstances at that point of application - namely your credit score that gives them an idea of how good a borrower you are, and your income which provides the affordability side of the equation.

    Right now, to your bank, you have a good history of paying back your credit (so a good credit history), but are unemployed. Although you may be able to pay back current spending from savings or JSA, the bank don't care. If they're going to lend you £8,000 they want to know you can afford to pay back £8,000, and they automatically reject unemployed people. Benefits etc. do not count as income for credit.

    As for the bank telling you why, they don't have to tell you beyond some vague reasons. There's little point getting your credit score, as it is likely to be absolutely fine, and that isn't your problem. Your problem is a lack of a job.
     
  10. Kronos

    Kronos Multimodder

    Joined:
    6 Nov 2009
    Posts:
    13,495
    Likes Received:
    618
    Yes I am beginning to come to the same conclusion. I suppose that providing an applicant why they have been turned down would make it easier possibly to get round these on a future application.

    But useful info about finding out which company they used.
     
  11. Anfield

    Anfield Multimodder

    Joined:
    15 Jan 2010
    Posts:
    7,059
    Likes Received:
    970
    Noddle only uses that info to verify you are actually you and not your nosy neighbour.
     
  12. Kronos

    Kronos Multimodder

    Joined:
    6 Nov 2009
    Posts:
    13,495
    Likes Received:
    618
  13. Scroome

    Scroome Modder

    Joined:
    26 Apr 2011
    Posts:
    1,252
    Likes Received:
    168
    I can confirm this is true.

    If you look at the comparisons between the three credit agencies, the data and "scoring" they hold on you is an absolute joke.

    It's usually so out of whack.

    I say this, and I'm a banker.........
     
  14. Corky42

    Corky42 Where's walle?

    Joined:
    30 Oct 2012
    Posts:
    9,648
    Likes Received:
    388
    Aren't credit reference companies just part of the picture that goes into the decision making process though ? Sure they are well know for being less than perfect, getting data wrong and seemingly making up their own rules, but that's why (imho) it's a good idea to ask if you have been turned down due to your credit rating, if so contact the credit reference company they use to make sure their records are correct.
     
  15. Carrie

    Carrie Multimodder

    Joined:
    18 Nov 2010
    Posts:
    3,183
    Likes Received:
    992
    It's relevant long before the idea of future applications. They do not give information out as to why an application has been rejected. Period. If they told people why:

    • the lender would end up in protracted exchanges with applicants who did not agree with their reasoning and wanted to prove them wrong
    • the applicant may already be a customer of theirs with existing facilities and the lender would not want to lose the existing business by telling the customer they are not a good risk for some things
    • applicants' risk profiles can change for the positive so in future they might lend on the basis required
    • ...
     
    Last edited: 20 Aug 2014
  16. wyx087

    wyx087 Homeworld 3 is happening!!

    Joined:
    15 Aug 2007
    Posts:
    11,987
    Likes Received:
    706
    I believe the lenders give you their own rating based on the information have, and a large card limit isn't necessarily good.

    You are unemployed => no way to pay back
    You have £8000 limit on your existing card => possibility to get into a lot of debt

    I had been refused a card beginning of this year, the bank person told me might as well get a credit card while opening their 123 account, so I ticked the box. But due to having got a credit card from a different bank a month ago, the 123 credit card was denied. The reason bank person I spoke to gave me was due to increased risk of unable to pay back with multiple cards.


    Follow up question I guess is: when is best to cancel a credit card?
     
  17. Anfield

    Anfield Multimodder

    Joined:
    15 Jan 2010
    Posts:
    7,059
    Likes Received:
    970
    It is often not the credit agencies that are at fault, but rather the fact that many companies only ever report negative data to them, for example you can't even get broadband without passing a credit check, but do you think BT and so on would tell the credit agencies that you pay your bill on time every month? Of course not.
    Your credit record will be completely blank unless you have a credit product from a high street bank or ever missed a payment on anything which makes it next to useless as the only way to use it is as a blacklist if you missed too many payments on something.
     
  18. Scroome

    Scroome Modder

    Joined:
    26 Apr 2011
    Posts:
    1,252
    Likes Received:
    168
    I agree to an extent, but not totally.

    Your credit file will contain information searches peformed by anything from Bank accounts, to utilities. Every time you switch gas or electric supplier, there is a note made against your credit file. It's neither good or bad information, but it does actually damage your credit file to move house or change suppliers en masse.

    For instance; When I moved house is June, I had a nice healthy experian credit score of 780. I decided that when I moved, I would change all my ultility suppliers and get sky fibre/tv in the process. Every one of them performed a search on my file.

    My credit score has now dropped to a crappy 615, and it had nothing to do with obtaining any form of credit. It's just the way the system reads all these searches and in it's head translates them to DANGER WILL ROBINSON. People can be hit for nothing other than moving home.
     
  19. oasked

    oasked Stuck in (better) mud

    Joined:
    24 Aug 2005
    Posts:
    4,102
    Likes Received:
    78
    Make sure you're address is consistent... (make sure you've been there for a long time!)

    When I was applying for a credit card a few years ago I got turned down until I put my parents address down... which of course I had been living at for many years! (despite being at university) ;)
     
  20. rollo

    rollo Modder

    Joined:
    16 May 2008
    Posts:
    7,887
    Likes Received:
    131
    You were likely rejected for 3 reasons.

    1. You already own a credit card with a £8k limit ( which is rather high for somebody not working)
    2. Your not currently employed.
    3. They will see your existing card as 8k of debt even if you dont have alot on it as you dont but they will think its maxed out and you want another card to max out.
     

Share This Page