# Credit card- application refused



## miser (24 Oct 2005)

Ive been a regular visitor since I discovered the site a couple of months ago. It's an excellent source of information-thank you to all the regular contributors. 

Just wondering if anyone knows any specifics about credit scoring. I've just been turned down by Tesco for one oftheir 0% interest (introductory offer) credit cards. Now, I'm not really that bothered about not getting the card- I can wait a few months and save for what I want. I'm more concerned about WHY I was refused- I've a decent salary (70k+), a very manageable mortgage, no other loans. My existing cards are paid off in full every month. I applied for and received a 0% card from Ulster Bank last year no problem, on which I put up over 6k and paid back before the interest-free period expired.

Should I be concerned that my credit history is not in order (due to e.g. a bank admin error) and check its accuracy with the ICB?


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## daltonr (24 Oct 2005)

Howdy,

This comes up from time to time.  It can be a bit of a mystery.
There's no credit scoring as such in Ireland.
Financial institutions to share details of your credit history good and
bad through the ICB, but it's up to each bank to interpret that history as they see fit.

You can request your credit history from the ICB:


A couple of things to consider.   

1.  There could be an error on your report.  That can be corrected if you point it out.

2. The ICB seem to identify you through your name and addresses, not through some unique number like your PPS.   It seemed a bit of an inexact science when I was dealing with them - If I didn't supply a previous address they didn't "FIND" any loans I had opened while at that address.

The implication of this is that if someone happened to have the same name as you and lived at a house you once lived at, it's possible that their credit details could find their way onto your report when a bank requested it.

If your name were Pat Murphy, or Mary Walsh, etc....You can see what might happen.

A big problem here is that the financial institution is under no obligation to tell you why they turned you down.   I know where you're coming from in terms of being more concerned about the reason than the Card itself.

-Rd


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## CCOVICH (24 Oct 2005)

As Rd pointed out, you can check your credit record, this might be worth doing.

However, a possible reason for refusal could be that the Tesco credit card is provided/underwritten by RBS, who operate on this island as Ulster Bank.  It could be that RBS/Ulster Bank don't want to give you a second card.

Tesco might not be obliged to tell you anything, but if you call them up and complain and point out what you've said above, then they might review, or at least tell you what stymied you application.

But if you don't need it, well maybe it's not worth the trouble........


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## etel (24 Oct 2005)

miser said:
			
		

> My existing cards are paid off in full every month.


If I was Tesco I would fail you just for that !


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## daltonr (25 Oct 2005)

etel's point did cross my mind.  

-Rd


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## Vanilla (25 Oct 2005)

It could be just a mistake on Tescos behalf. A couple of years ago, I applied for a bank of Ireland credit card and was refused, and the following week received a letter from them stating that I was pre-approved for the credit card...I sent both replies to my local branch of Bank of Ireland and applied for, and received, an AIB card.


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## bond-007 (25 Oct 2005)

daltonr said:
			
		

> A big problem here is that the financial institution is under no obligation to tell you why they turned you down. I know where you're coming from in terms of being more concerned about the reason than the Card itself.


 
Oh yes they have to if you request your info under the Data Protection Act. They then cannot refuse to disclose their reasons for refusal.


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## Bank Manager (25 Oct 2005)

Ask them why they refused you, at face value beats me...............


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## bond-007 (25 Oct 2005)

Bank Manager said:
			
		

> Ask them why they refused you, at face value beats me...............


 They will just decline to comment quoting T&C's etc.


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## Bank Manager (25 Oct 2005)

I'll take your word for it, personnally I think it's good customer practice on behalf of a financial institution to explain why we are declining a loan/credit card/mortgage.


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## bond-007 (25 Oct 2005)

Bank Manager said:
			
		

> I'll take your word for it, personnally I think it's good customer practice on behalf of a financial institution to explain why we are declining a loan/credit card/mortgage.


 I think the way the banks see it is that if they tell you why you refused them, they will adapt their future applications to obtain the loan.


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## miser (26 Oct 2005)

Thanks for all the responses folks. 

As some of you pointed out, paying off my bill every month might make me a less than attractive credit card customer!

I think I'll call Tesco & see if they'll tell me anything- not expecting a whole lot of information from them though
For the sake of curiosity I'll also check my record with the ICB. Will let you know how I get on.


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## miser (3 Nov 2005)

An update- rang Tesco yesterday and was talking to a very pleasant, polite gent. 
While he wouldn't talk about criteria they use in their scoring system, he did confirm that the results they got when they checked my ICB records were in order (i.e. that's not why they refused me), and that I "just failed" to meet the "other criteria" that thet have. He also invited me to appeal their decision to refuse if I wanted to, by sending a letter with 3 months bank statements to verify earnings to their Freepost address. I might- or I might wait for the January sales


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## alpha (3 Nov 2005)

why do you want so many credit cards?


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## daltonr (3 Nov 2005)

Miser,

Are you self employed by any chance.   I have from time to time had problems with that.
E.g. When I wanted to change from Vodafone to 02 they weren't willing to accept my 7 or 8 years of paid Eircom/Vodafone bills, and My P60 as evidence that I could pay.

They wanted Audited Accounts of my business.  This was for a personal Mobile Phone.  I work for a company and draw a salary,  I felt I should be entitled to present the same evidence as any other employee of a company.  The fact that I own the company should not have been a factor.

Had I been setting up a Company account with them that would be a different story.

Anyhow they passed up the opportunity to poach a Vodafone customer, and I wasn't willing to give them the information they demanded,  so I'm still with Vodafone.

I wonder if the "other criteria" you mention could be something like your employment status,  how long have you been at your current Job?  or your current address?  Perhaps the fact that you already own a Credit Card, even with the bill being paid regularly is an issue.

-Rd


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## Happy Days (3 Nov 2005)

miser


Unbelievable - I was turned down for one last month - I laughed!!

I have no debt / loans, income shouldn't be a problem etc, but I do have my current credit card with Ulster (a bank I no longer like so I decided to change - didn't realise it was the same crowd  - you cant win)

Could see no reason for being turned down to be honest I thought they were throwing them out to people - must check my credit rating now


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## miser (3 Nov 2005)

alpha said:
			
		

> why do you want so many credit cards?


 
A fair question. The answer is that I see using a credit card WITH A ZERO % INTEREST RATE as a very useful short-term borrowing tool, or, if you like, a cheap loan. It's not free- Govt's 40 euro stamp duty has to be paid, but it's cheaper than an overdraft or personal loan.

Means I can buy stuff I want now and pay for it over a few months without taking out a loan and without having to wait and save for it

Note the emphasis on ZERO %- I'm not inclined to borrow at regular credit cards rate of interest.


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## miser (3 Nov 2005)

daltonr said:
			
		

> Miser,
> 
> Are you self employed by any chance.
> 
> ...


 
No, I'm PAYE. The only "other criteria" I thought might affect me is the fact that I've moved house in the last year. And as a previous poster mentioned, the fact that I pay my credit card bill in full every month might count against me


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## alpha (3 Nov 2005)

ah, i see miser. it makes sense.


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## SpatenMan (3 Nov 2005)

I also got turned down by Tesco last month. My salary is > E70,000 and I own my own home. I am only living in Ireland since August 2004 and I have yet to borrow money here. I guess the point is I don't appear on any ICB records.


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## Alex (3 Nov 2005)

i see from the posts above that ulster bank backs the tesco credit card. their loans too are backed by ub. i can see how that might stop you getting a tesco credit card as you already have a credit card directly with ub. 

Alex.


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## CCOVICH (3 Nov 2005)

CCOVICH said:
			
		

> However, a possible reason for refusal could be that the Tesco credit card is provided/underwritten by RBS, who operate on this island as Ulster Bank. It could be that RBS/Ulster Bank don't want to give you a second card.


 
Quoting myself in response to _Alex_


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## Observer (6 Nov 2005)

Shouldn't be a problem, I have cards with both Ulster (with whom I have my current a/c etc) and Tesco (nifty 0.5% back on purchases in the form of Tesco Clubcard points)



Also keep getting mailings inviting me to apply for Ulster's zinc card - don't see the point.....


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## Alex (6 Nov 2005)

do ub only give out such invitations when you already have a credit card with them?

Alex.


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## CCOVICH (6 Nov 2005)

Observer said:
			
		

> Also keep getting mailings inviting me to apply for Ulster's zinc card - don't see the point.....



Do UB still refund the stamp duty on Zinc cards as long as you spend over a certain amount a year?  That's a good reason I guess?


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## Observer (7 Nov 2005)

Alex said:
			
		

> do ub only give out such invitations when you already have a credit card with them?
> Alex.


No, I started getting the junk mail when I opened a current account with them.  Regularly get offers for every kind of product, mortgage, loan, cc, insurance, investment bonds, etc.



> Do UB still refund the stamp duty on Zinc cards as long as you spend over a certain amount a year? That's a good reason I guess?


  Yes, they do.  Handy if you want an extra card, I suppose.


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## Pollock (7 Nov 2005)

Many years ago in a poorer time in my life my partner and I spent weekends applying for store cards in the USA because they had fantastic gifts on offer just to apply - for instance at Christmas we got the turkey roasting dish from Sears. Anyway we know we'd be turned down because we had no credit history in the states having just arrived. A year or so later this came back to haunt us because when making a genuine application for a credit card we were refused solely on the grounds that we had been refused so many times in the past year.

I don't know if this could happen here but I'd be reluctant to apply for another card unless I was assured I'd be approved.


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