Refused credit card

[Madangan]

Hi all,

A friend of mine has been refused a zinc ulster bank credit card much to his surprise. He has a perfect credit rating as far as he is aware( he is checking with the irish credit bureau to make sure there are no problems but if there are these would be most likely errors as he has never had problems or missed payments etc..)He has no borrowings debts etc.. save his mortgage with repayments of approx €1650 p.m, net salary is approx €4000p.m (Circa €70,000 gross p.a).He has substansial equity in his home and has similar in an investment property.

He previously had a series of credit cards over the years usually two at a time and most recently had two up until March when he cancelled both,at that time he would have had a combined credit limit of €17,500 . Never accrued any major debt on the cards and paid balances in total most months.

Does anyone know or guess at what the problem may be? UB said it was based on the info furnished by him and by the ICB and that his finances "were fully committed" in UBs opinion! But based on the above he has c €2,350 monthly income after debt repayments???

Has anyone else had difficulties with UB Credit cards???(I know that other sections of UB can be dreadful to deal with!!!) Or are UB tight fisted?

 

[Yoltan]

I had a zinc card a few years back. Less than perfect credit history (a long time ago though) and earning less than your friend. Honestly don't know why they refused him.

Just read your post agin. I wonder is it anything to do with him paying the balance in full each month? Just a thought.

 

[Sn@kebite]

Could the length of time he's been working in his current position erect any problems? - i.e. moving jobs regularly/working there for a short while.

 

[Madangan]

Could the length of time he's been working in his current position erect any problems? - i.e. moving jobs regularly/working there for a short while.

No..he has been in same job for several years...I cant understand it myself as his profile seems to be the type banks would love to lend to

 

[z103]

and paid balances in total most months.

I would have thought banks would prefer people to build up and pay off loads of interest.

 

[Sn@kebite]

I would have thought banks would prefer people to build up and pay off loads of interest.

Would that not imply that banks want/require you to have a bad credit rating?

 

[polly2000]

I don't know why they refused too but I just wonder what Ulster Bank are up to. I have a business one with them and I got a letter recently with new terms and conditions. One was in the case of emercency replacement of lost or stolen cards a 112 euro fee will apply !!!

 

[z104]

Sometimes banks don't want people that pay off their debts early. Especially on credit cards. Afterall, they can make more money on somebody who never pays off their card in full

 

[Flax]

Could he have made a mistake on the application?

Could the officer in UB have made a mistake when reading his application?

Both are possible...

 

[Madangan]

Could he have made a mistake on the application?

Could the officer in UB have made a mistake when reading his application?

Both are possible...

True but UB have been their usual helpful selves by refusing to say why he has been refused other than to say he is in their eyes "fully committed financially" which clearly is not the case....so other than reapplying what else can he do...

 

[agapanthus]

Re whether or not the official read the form wrong, it just doesnt matter, all of this type of stuff, credit cards, personal loans etc is decided on a credit scoring basis, i.e. 5 points for land line, 1 point for mobile (just an example, dont know the exact scoring system) and so on. The computer makes the decision based on the answers to the questions and there is almost no input from staff. I would have an excellent credit rating yet because I have no mortgage (luckily) or any other borrowings this is actually a bad point from a credit scoring angle. The computer prefers to see a loan in place and being paid regularly rather than no loan at all. Last time I borrowed anything was a temporary overdraft to purchase Eircom shares, bank computer turned me down because I had nil balance in my current account at end of month, the fact that I transferred out any surplus funds to a savings plan each month didnt count, scoring system saw just enough money to meet direct debits left in account each month. So in other words dont take it personally, ask the bank to appeal the decision, it sometimes works.