A question about : Credit Check Advice
I've never really paid much attention to my credit history, never applied for anything substantial and never been rejected for anything I have applied for. Until today that is. I wanted to switch my current account over to Halifax as their account offered the best rewards for my level of income (and the Ј100 incentive wasn't exactly off putting) but when they ran their credit check I was told they couldn't even offer me an account with a VISA debit card.
I'm a bit at a loss as to why this is. I've looked at my report on Noddle and the rating is 4/5 (I understand this is largely meaningless) but the historical activity all looks good to me? I've got 3 bank accounts on there going back the full 6 years. 2 current accounts, one settled and closed, then the other open for the last 5 years all entirely green and always in credit. The other is a student account, never over the arranged limits, fully paid off and closed 2 years ago now.
There's also mobile phone bills with 3 different providers going back the full 6 years. All green, no defaults, no late payments, all settled in full at the date the contract was cancelled. Any other regular credit agreements I have had (rent, monthly payments of yearly subscription fees) don't show on the report but it's the same story with those.
All in all I can't work out why I wouldn't even be offered such a basic current account, and I have no idea how to improve my current history without adding to it with credit I do not want or need.
Any advice for my situation?
Thanks in advance.
Best answers:
- On the electoral roll?
Are your existing accounts at the same address as the one you used on this application?
Might be worth getting copies of your files from experian and equifax as well just to check there is no issue with those agencies (either the Ј2 reports or free trials are available if you haven't used them before). - Yes, showing as registered on the electoral role for 11 years.
All of my accounts, past and present, are at my current address.
I got copies of the other two reports on the free trials. Both identical to noddle in every way. Both showing excellent (irrelevant) scores and nothing but green all the way through.
Experian has the search from Halifax on it so I guess that means they used that one?
What's my next step? - Which account were you applying for? Reward?
Did you apply in branch or via internet etc?
Book an appointment or appeal it if there seems to be no reason for the rejection. Can send your credit reports off with the letter as well. - I applied in branch for a reward current account as at the moment I wouldn't have any benefit from the insurance options the ultimate offered.
Is there a MSE guide to the appeals process and possible consequences/benefits? Seems a bit extreme just for a current account but might as well read into it. - https://forums.moneysavingexpert.com/...984&highlight=
What is your debt to credit ratio? Annual salary? Are there any other Financial Associations on your credit files? - Not sure what you mean by debt to credit ratio? I have no debt, and I'm using 0% of my available credit, which at the moment amounts to an available overdraft on my current account which doesn't get used.
Again, unsure what you mean by Financial Associations? All that's on my report is 2 settled bank accounts, 3 settled phone contracts and my current phone contract and bank account.
Annual basic salary is 20k. Rarely changes month to month but, if it were, it would only be to increase.
Thanks for the link, although they all seem to be appealing a Credit Card being declined. Does the same principle apply for a Reward Current account? Given that my application was in branch and with a person, who then had to call their office when the computer said no, has it already been looked over by human eyes or would they just be parroting what the computer had told them? - Financial associations are other people who appear on your credit file as a result of you having, or have had joint credit accounts with.
Reward accounts are generally not 'such a basic' account to get, the potential lender will be making a decision not just on your credit history/perceived risk but also on how much money they think they are likely to earn from you as a customer, likelihood of selling you extra products in the future etc.
You could still appeal the decision to decline you, it would be a different person looking at the appeal, though of course may not change the answer. - Financial Associations = is anyone else connected to you financially and showing on your credit files? e.g. partner, parents?
If you have zero debt and are not using any credit, it could be that they declined you because they can't see how you would run a current line of credit e.g. credit card, loan repayment etc. Might be worthwhile taking out a credit card and just putting your regular spending on it and clear it by DD for full payment at the end of every month. This won't help you with Halifax as the search has already been done, but may help for any future applications.
As for Halifax, if nothing is amiss in your credit files, all you can do is write to them and include copies of your file for them to pass onto their underwriters with a letter querying why you were rejected in the hopes they will overturn their decision.
What did the staff member say to you when they called Head Office as to why your application was rejected? Did they expand on the decline? - Ah, no dependents or joint accounts or anything of the sort.
I was simply told they couldn't tell me why.
So for now I guess I shall apply for an every day credit card, I used the MSE 'soft' check and there are a few on there that seem to be reasonable and at 90% likelihood and write to Halifax in the mean time as their Reward account and incentive really is the best 12 month solution to have wages paid into.
Thanks for all of the help - So today I found out I was rejected for this M&S 90% likely credit card. I'm really at a loss as to what's going on and what to do next...
How can I improve my already spotless credit history if I'm being rejected for basic, and supposedly extremely likely, applications? I have little interest in getting an obscene credit card with 35% interest on it... - What is your overdraft limit?
What bank do you bank with? Have you tried applying for a card with them?
Did you write in to appeal for the Halifax account?
Do you have any CIFAS markers or anything?
https://forums.moneysavingexpert.com/....php?t=5179907 - I'm not entirely sure I even have an overdraft limit, I never use It if I do.
Currently banking with Barclays. Haven't applied for a card with them, partly because I applied for the card with minimal cashback rewards that I was supposedly likely to get. I don't need the credit as such so I wanted to get a bit more from a card than just some activity on my history. Mostly because I was trying to leave Barclays, their current accounts offer zero rewards, their savings accounts and ISA rates are terrible.
No CIFAS markers at all according to call credit.
I tried to get in touch with Halifax customer service which was useless so I will be writing to them now. I'm due to receive written notice of the M&S decision too at which point I may write to them as well unless they detail their reasons for rejecting me. The reports I should send with them, is it just a copy of the postal report you can order for a couple of pounds? Is there a preferred place I should order it from to enclose or will any of them do?
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