# why turned down for a credit card by Halifax and Tesco?



## gnubbit (9 Oct 2009)

My friend earns €45k basic and has one loan. 

The loan is for €50k over 58 months. 

He's made 16 payments and has overpaid as he wants to clear it faster.  He had a credit card in the past and always cleared his balance monthly. 

But recently he applied to Halifax and  Tesco for credit cards and was turned down by both of them.  They said it was because of his credit rating.  He checked his credit report and the loan is on it but nothing negative as he has always kept his finances in good order.

I just don't get it.  I have a credit card and I'm a student so I'm not even earning!  So how come he was refused?  Is this the  credit crunch in action?

He wants a card for the convenience, doesn't need a high credit limit, any idea what he should do? 

I think he's feeling bad that he was rejected.


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## TarfHead (9 Oct 2009)

*Re: Why was my friend turned down for a credit card?*

Has your friend tried AIB or BoI ? I heard it said on the radio yesterday by the Business Editor of the Sunday Tribune, that the UK financial institutions are not doing any new business in Ireland.

The decision that Halifax and TESCO made on the application is theirs to make. They are not obliged to approve the application.


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## gnubbit (9 Oct 2009)

*Re: Why was my friend turned down for a credit card?*

Thanks for the reply.  No, he hasn't applied to anyone other than Halifax (who he now banks with) and Tesco.

Of course it's up to the institution to approve or decline an application.  I was just wondering why as I would have thought he was a good risk.

I'm also wondering why Halifax/Tesco are taking applications for these products if they're not dong any new business in Ireland.


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## Lightning (10 Oct 2009)

Tesco Personal Finance are accepting new credit card customers but they are very selective as to who they accept as a customer. 

Your friend simply did not match Tesco Personal Finance's high criteria.


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## gnubbit (10 Oct 2009)

Fair enough, thanks for the information.


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## markpb (10 Oct 2009)

Has your friend changed bank or address recently?


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## gnubbit (10 Oct 2009)

Yes, he changed both earlier this year - would that make any difference?


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## pudds (10 Oct 2009)

*Re: Why was my friend turned down for a credit card?*



gnubbit said:


> Thanks for the reply.  No, he hasn't applied to anyone other than Halifax (*who he now banks with*) and Tesco.
> 
> .



that is a bit strange but he could apply for a Halifax debit card I'm sure he would have no probems in getting that if that suited him.


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## gnubbit (10 Oct 2009)

Yes, he thought it was strange true but since it happened we've both heard stories that Halifax are not giving credit to anyone.  He already has the debit card - no problems getting that.


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## deadlyduck (11 Oct 2009)

I suspect that your friend's profile is probably 'too good' for the Tesco card ie he pays his card balance off in full each month and doesn't pay interest.

I was turned down by Tesco a number of years ago despite having an impeccable credit rating [low mortgage, credit card ALWAYS paid on time and sometimes overpaid] and a good income/ very low debt status. I was intending to use the "0% interest and no payments for 6 (or 9) months" Tesco credit card for purchases while building a house as a cash management device and was shocked/surprised/ bemused when they rejected my application. The same thing happened to a colleague who is even more careful with his finances.
We concluded that our profiles weren't sufficiently profitable for Tesco as they wouldn't earn any interest from us and probably suspected (correctly, in my case) that we were looking for an interest free loan from them!


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## markpb (11 Oct 2009)

gnubbit said:


> Yes, he changed both earlier this year - would that make any difference?



My girlfriend changed her current account from AIB to Halifax and later applied for a credit card with them. She put down Halifax/6 months on the application form and was declined. When she re-applied, she put down AIB/6 years on the form (since she had both accounts) and was accepted.


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## gnubbit (11 Oct 2009)

Thanks for the replies guys.  Really interesting and I think if I pass on your stories he'll feel a bit better.  Yes, he's not a good bet for profit as he only uses his card for big purchases where he wants the protection of a credit card and already has the money to pay it off in full.


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## csirl (12 Oct 2009)

> My friend earns €45k basic and has one loan.
> 
> The loan is for €50k over 58 months


 
In the current economic climate, I can understand the reluctance of any organisation to lend further to anyone who is in debt to the tune of more than a years gross salary.


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## gnubbit (12 Oct 2009)

Yes, I guess it's hardly shocking.


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## POC (16 Oct 2009)

A few years ago my husband and I wanted to get a Tesco credit card - we didn't really mind which of us was the main account holder and which of us was the second card on the account. Our mortgage, bank accounts etc are in joint names so we should have similar credit ratings.Initially my husband applied - and was turned down. So I applied and got it - even though I work part time and have a lower salary. Maybe they thought they would make more money out of a female on a low part time salary! We use the card regularly, and pay in full every month. The Tesco clubcard points we get when we use it are great - we've used them for Ferry crossings, family meals out, hotel stays etc.


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## gnubbit (17 Oct 2009)

That's interesting!  Well the clubcard points would have come in handy but he's decided not to bother and just use his debit card for now.


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