Credit Card Application Rejected.

cwjcwjcwj

I have applied credit cards from both BOI and AIB recently. And both of them have rejected my application because I am only 7 months in Ireland (I was in UK previously). I have a steady income which is more than 35k and no bad debt. record. Anyone can recommend others with good APR rate?

Jet Black

It could be that you have no previous lending history, no ICB* record.
You may have this problem with most places you try.

You need a credit history really to apply for a credit card.
But to get a credit history you need a credit card....
See the flaw there?

Have you tried the bank you have your current account with?
Another thing is if you have no ICB and apply via post or internet 9/10 the application is automaticly rejected. Best to appeal the decision in your local branch as they can help more.

Alternatively you could get a debit card (visa, laser or maestro)

*Irish Credit Bureau

cwjcwjcwj

I have an account in AIB and I have tried AIB local branch where I created. They rejected me as well.

I am thinking to get 3V or Halifax Visa debit card. Anyone have a Visa debit card? Is it just exactly like VISA credit card.

Another thing is I have a bank account in AIB. If I am getting Halifax as well, am I have to pay for any charges? Thanks!

jeckle

If AIB have refused you a credit card then they obviously don’t value your custom enough, & I for one would close my account with them.

You could go into Halifax & get them to transfer your account from AIB to them – that way at least you would get a Visa Debit Card. Ulster Bank are now issuing Visa Debit Cards also, so you could transfer to them also.

There is a thread on the Ulster Bank Visa Debit Card here: http://boards.ie/vbulletin/showthread.php?t=2055635455

You’ll probably find most of the information that you’re looking for there.

Jet Black

cwjcwjcwj wrote: »

I have an account in AIB and I have tried AIB local branch where I created. They rejected me as well.

Well then its most likely that you have no credit history.

cwjcwjcwj wrote: »

I am thinking to get 3V or Halifax Visa debit card. Anyone have a Visa debit card? Is it just exactly like VISA credit card.

Another thing is I have a bank account in AIB. If I am getting Halifax as well, am I have to pay for any charges? Thanks!

With the halifax card there are no fees except government stamp duty.
You will also be only be able to spend your own money and wont be given any credit unless you apply for an overdraft.

Yes it works excatly like a visa.

broker2008

Lending criteria has changed in many classes of insurance and banking recently. This includes personal loans, term loans, credit card applications, mortgage applications and life assurance underwriting. Increases in risk have led to reduction in successful applications. PI cover has also gone through the roof for many occupations because of recent shananagins.

Jet Black

jeckle wrote: »

If AIB have refused you a credit card then they obviously don’t value your custom enough, & I for one would close my account with them.

Its not really to do with good/bad customers. Ive seen applications declined with people who own their own home, have zero outgoings and a lot of savings. The problem is they are not on the ICB, as I said.....

You need a credit history to apply for a credit card.
But to get a credit history you need a credit card.

dotsman

Unfortunately, 7 months is not exactly a long time (certainly not long enough for a bank to assess your ability to take on debt). Those days are fortunately/unfortunately (depending on the circumstances) are gone.

You may have better look trying some place with a ridiculously high APR (but make sure you pay the bills off in full and on time!). They tend to have more lax criteria.

Are your wages paid directly to your account? If so, if you keep your account in order, I'd suggest trying again in about 6 months (at which stage you will have at least a year's history).

With the current turbulent times and rising emigration, many banks are suffering from people leaving the country, leaving behind unpaid credit card bills and overdrafts. The more settled a person is (how long they have lived here, how long they have maintained a satisfactory account with the bank and other such factors now play a role in decisioning applications - owning a home here is always a good one!)

jeckle

Mask wrote: »

Its not really to do with good/bad customers. Ive seen applications declined with people who own their own home, have zero outgoings and a lot of savings. The problem is they are not on the ICB, as I said.....

You need a credit history to apply for a credit card.
But to get a credit history you need a credit card.

Lending decisions are made by the individual financial institution. ICB do not decide who should get credit. They provide information on previous loans, payment defaults etc to assist them in their decision.

If AIB want a customer to have an AIB credit card they can & do issue it to them. If AIB see their customer’s account being operated to their satisfaction with a regular salary being lodged into it they can decide to issue them with a credit card.

c4cat

Personally I think a debit card is a much better option, spend only what you got, spending into debt is one big steep hill you do not want to go down.......
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Toots

jeckle wrote: »

Lending decisions are made by the individual financial institution. ICB do not decide who should get credit. They provide information on previous loans, payment defaults etc to assist them in their decision.

Precisely. If there is no record of loans etc being paid off, then the customer is 'untested' so AIB can't see whether they're good at paying off debts on time, therefore they're erring on the side of caution by not approving the card.

If AIB want a customer to have an AIB credit card they can & do issue it to them. If AIB see their customer’s account being operated to their satisfaction with a regular salary being lodged into it they can decide to issue them with a credit card.

7 months is not really a long time to judge how a person's account operates. As dotsman said, there is also the issue that if you've got no other debts etc tying you here, then there would be very little stopping you leaving the country (and possibly the credit card bill) if things got tough. I'm not suggesting this is the case with the OP, however it has happened enough for the banks to have concerns about it. Unfortunately that's the reality. If you're looking for alternatives, a Visa Debit card would probably be better than a 3V or prepay card, as the charges are higher for the prepay cards. If you open the account with Halifax then AFAIK all you'll pay is the Government stamp duty which is about €5 per year.

jeckle

Toots wrote:

Precisely. If there is no record of loans etc being paid off, then the customer is 'untested' so AIB can't see whether they're good at paying off debts on time, therefore they're erring on the side of caution by not approving the card.

Exactly, ICB don’t make the decision to reject the application – the bank does. It’s not just a case of no one over 18 being in the position of never being able to obtain any sort of credit ever just because there is no record of them on the ICB database – if it was the future for both the customer & the bank would be extremely bleak altogether.

Toots wrote:

7 months is not really a long time to judge how a person's account operates. As dotsman said, there is also the issue that if you've got no other debts etc tying you here, then there would be very little stopping you leaving the country (and possibly the credit card bill) if things got tough. I'm not suggesting this is the case with the OP, however it has happened enough for the banks to have concerns about it. Unfortunately that's the reality. If you're looking for alternatives, a Visa Debit card would probably be better than a 3V or prepay card, as the charges are higher for the prepay cards. If you open the account with Halifax then AFAIK all you'll pay is the Government stamp duty which is about €5 per year.

Yes, the bank should have informed the OP that they would be in a position to consider his application at a future date, if for no other reason than to keep the business, even if they were not prepared to ask for copies of his UK bank statements to aid them in their score rating. As you say, they may or may not consider them a flight risk so might not be pushed about having them as a customer. It’s usual to start the customer off on a small credit limit &, depending on how they operate the account the limit can be increased in time on review. This is how the customer first appears on the ICB database.

So, for the OP the reality is that his present bank cannot issue him with a Visa Debit Card & will not supply him with a Credit Card, so it looks as if they will have to bring their business elsewhere – to either Halifax or Ulster Bank – there is no real point in having their salary paid into one bank purely to transfer it the same day into another bank so as they can fund their Visa Debit Card. The good thing is that it’s so much easier to switch banks these days, & it looks as if quite a few people are switching banks to avail of the Visa Debit Card.

cwjcwjcwj

Thanks for all your replies. I think I better keep two account which are AIB and Halifax. So, I can use the VISA debit card from Halifax.

Jet Black

jeckle wrote: »

Lending decisions are made by the individual financial institution. ICB do not decide who should get credit. They provide information on previous loans, payment defaults etc to assist them in their decision.

Em? I know I did not say they did.

jeckle wrote: »

If AIB want a customer to have an AIB credit card they can & do issue it to them. If AIB see their customer’s account being operated to their satisfaction with a regular salary being lodged into it they can decide to issue them with a credit card.

Very true. They can decide this, but for someone who is in the country for less than a year its very doubtful.