CC Application Declined Instantly

[Obi-run Kenobi]

Curious to know people's experience with this, based on your knowledge of eligibility criteria...

I just applied for a new CC and, in short, was declined instantly at the end of the online application. The card was only a Macquarie Plat with minimum income requirement of 50k. My income is double this, so that can't be the issue.

I have fairly meagre expenses and the only liabilities was a small mortgage and another credit card, so I'm wondering why the decline. I've used the same info on many applications without an issue.

I know the approval process is based on many criteria, so it might be hard for you to be specific. Just wondering what other people may be experiencing and what criteria has affected their applications (for better or worse)

 

[Pushka]

NAB did this to me even though they know all our assets. I still don’t know why but went with someone else who deserved my spend.

 

[exceladdict]

Curious to know people's experience with this, based on your knowledge of eligibility criteria...

I just applied for a new CC and, in short, was declined instantly at the end of the online application. The card was only a Macquarie Plat with minimum income requirement of 50k. My income is double this, so that can't be the issue.

I have fairly meagre expenses and the only liabilities was a small mortgage and another credit card, so I'm wondering why the decline. I've used the same info on many applications without an issue.

I know the approval process is based on many criteria, so it might be hard for you to be specific. Just wondering what other people may be experiencing and what criteria has affected their applications (for better or worse)

Will be interested for you to report back if you find out why! Definitely check your credit reports for any incorrect enquiries etc. Could also be the limit of your other card.

 

[33kft]

They may have been unable to identify you using the provided detail with whoever their credit agency is - things like address, time at address, ID (medicare/driver's lic) need to match up

 

[auriga]

I am a self funded "home duties" person.
Approved from ANZ and Amex.
Instant decline from St George.
Declined after blah blah blah from NAB.

 

[Happy Dude]

Maybe you're the type of customer who pays off their balance each month and not incur interest. Why would they want a customer like that?

 

[dec540]

It might be worth calling them to check. It could be something simple like the application asking for weekly expenses and you've accidentally put a monthly amount, which quadruples expenses. I've had that in the past.

 

[theblank]

Curious to know people's experience with this, based on your knowledge of eligibility criteria...

I am a former lender/approver.


Too many different reasons, but because a bank wants to get your business most of the time if you dont immediately qualify by their automated process they defer the decision to an assessor to consider. For the bank to instantly decline it must be for reasons that the bank doesnt want to overcome or waste any more time on it. And no bank is going to tell you why, because then the punters will learn how to subvert the banks decision making systems. The staff dont even know anyway, if the mention a reason, they are guessing.

It could be as something as simple as a high rate of bad debts in a certain demographic and/or location.
Could also be data matching problems, too many of your personal factors didnt match up
Then of course there is the possibility you have had too many credit enquires, or defaults.

First step is to get a copy of your own credit file. If nothing seems to stand out as obvious, you might have to suck it up. A few years ago I got knocked back by Bankwest for a $1000 credit card, never had a decline in my life. The decline letter emphatically states not to bother asking them why. There was nothing wrong with my application and within a short time after I get a 16k credit card from another lender.

You might just have to wait a couple of months and apply for another one.

 

[theblank]

Maybe you're the type of customer who pays off their balance each month and not incur interest. Why would they want a customer like that?

.

nope, not a chance. Such a customer makes a lot of money for the bank in interchange fees.
Thats why they hand out rewards points like its going out of fashion

 

[deebens]

Curious to know people's experience with this, based on your knowledge of eligibility criteria...

I just applied for a new CC and, in short, was declined instantly at the end of the online application. The card was only a Macquarie Plat with minimum income requirement of 50k. My income is double this, so that can't be the issue.

I have fairly meagre expenses and the only liabilities was a small mortgage and another credit card, so I'm wondering why the decline. I've used the same info on many applications without an issue.

I know the approval process is based on many criteria, so it might be hard for you to be specific. Just wondering what other people may be experiencing and what criteria has affected their applications (for better or worse)

Wouldn't waste your time worrying about it. Same has happened to me with Macquarie and I've read it happening to others. No one understands why. They even won't give me the basement jetstar card they're the credit provider for.

 

[Happy Dude]

.

nope, not a chance. Such a customer makes a lot of money for the bank in interchange fees.
Thats why they hand out rewards points like its going out of fashion

Only make money off him if he uses the card. The OP said he has meagre expenses and it's a $50k income card. How much from interchange fees are they expecting to make off anyone at that level?

I'll defer to your knowledge here but I always understood that "revolving" customers were the bank's jackpot. There are laws now requiring banks to show how much money the customer will pay if they become an interest payer. They wouldn't need laws like that if there was no chance the banks didn't want such customers. And why then do they bombard customers with limit increases, if it isn't to keep them on the interest hook?

I also would think that banks would not be keen to sign up churners or customers who throw the card in the draw. Is there no chance the banked deemed the OP a low spend customer, thereby unlikely to make any money of him?

 

[Obi-run Kenobi]

Only make money off him if he uses the card. The OP said he has meagre expenses and it's a $50k income card. How much from interchange fees are they expecting to make off anyone at that level?
...
Is there no chance the banked deemed the OP a low spend customer, thereby unlikely to make any money of him?

This is an interesting point.

I'm not a particularly low spend customer but I do clear the balance each month, avoiding interest charges. Additionally, I never considered that low expenses could be viewed as a negative by the banks but I can see where you're going with it.

It's always a dance between expenses and serviceability with these things and I try to keep my reported expenses low to ensure serviceability.

 

[theblank]

Only make money off him if he uses the card. The OP said he has meagre expenses and it's a $50k income card. How much from interchange fees are they expecting to make off anyone at that level?

No lender has any way of knowing how much an applicant would spend on the card in the future, so its not logical to suggest that would be as reason to decline.

 

[Happy Dude]

No lender has any way of knowing how much an applicant would spend on the card in the future, so its not logical to suggest that would be as reason to decline.

Perhaps, but they do have a good idea of what he spends at present. I've highlighted the key word. It's all about "can" spend. With meagre expenses, it's unlikely the OP can become an interest payer with this card. I'd wager the OP may have had more luck with a more premium card (higher limit, more spend to gain sign on bonus, and thus more likely to retain the card).

In addition, any money they make from interchange fees is diminished by the cost of FF points, whereas interest is basically all profit. We've seen earn rates slashed in response to government regulation in order to maintain their margins. So if he's not going to be spending heaps to earn interchange fees and it's unlikely he's an interest payer or likely to become one, it's entirely feasible that Macquarie decided there's not enough profit off the OP to bother.

 

[Ade]

I've had my ANZ Qantas Black FF card rejected by ANZ right after I submitted the application. The bank provided an application number and also a contact number if I wished to know more about the application.

I called them up and the person mentioned that I had, as someone else in this thread pointed out, provided my monthly expenses as weekly expenses and also in the credit currently outstanding, I had provided $200000, instead of $2000

The agent on the phone line offered to fix it and the card was processed. To provide more evidence of earning (the salary required for this card was $75K and had more than that) via payslips and the card was approved the next day. Physical card landed in 5 biz days in my mailbox.

So if you've got a reference number from the transaction, you may try and call Macquarie Bank and ask if they've got a possible reason/explanation as to why your card was declined, instantly.

Let us know how you go.

Cheers, Ade

 

[DC3]

... I just applied for a new CC and, in short, was declined instantly at the end of the online application. The card was only a Macquarie Plat with minimum income requirement of 50k. My income is double this, so that can't be the issue.

I have fairly meagre expenses and the only liabilities was a small mortgage and another credit card ...

There are many posts about trying to get a Macquarie credit card. I was declined twice.

The third application was approved. For this, I had increased my expenses significantly and only declared “base” income. The tactic was to show that I may not be able to pay off the expenses in full each month. Others have had quite different experiences of course.

Who knows how it works?

Edit: regarding my previous rejections, I found Macquarie to be useless in my follow-up phone calls. All that I got was that my application did not meet their credit criteria. And, Macquarie is the only one to ever reject my cc applications, with about 8-10 other providers.

 

[Ausbt]

I had a basic Coles Mastercard denied recently after a post-application phone call. Now the guy gets on the phone and clarifies a few details. All was well, in fact he was interpreting my quoted expense figures as 'my contribution' when actually it was "in total" and they needed to be halved to represent my share, so a better position than first thought. Then the call dropped out when I stepped into a lift.

Surprise surprise, declined. I checked with HR, they never called to verify income figures. I reckon the Coles/whatever-bank-it-is hack just thought "ahh, can't be bothered calling back, just bin it".

 

[SOPOOR]

ive been declined my entire life for macquarie and citibank based lenders,
so qantas and virgin, all decline me, soemtimes instantly, most of the time after processing

I dont take it personally, I get almost every other lender approved,

the banks have their models of who they want and why

I tried asking the first few times as to why, but they wouldnt tell me

 

[theblank]

Perhaps, but they do have a good idea of what he spends at present. I've highlighted the key word. It's all about "can" spend. With meagre expenses, it's unlikely the OP can become an interest payer with this card.

nope, not at all. Completely barking up the wrong tree.

The bank wants the business, period. The only reason they decline is credit risk.

 

[Max Samuels]

Based on what I know when I used to work at a bank "which bank?", the automated approvals for credit cards are based solely on your credit score (equifax) and their ability to match up what you have put down as liabilities with what is on the comprehensive credit report. So for example, if you say you have 3 credit cards, and the credit report says you have 4, you can lose points for not being "trustworthy".

But an instant rejection, based on no other information other than what you supplied, and assuming that your income/spend profile was also ok, and your credit is good, is probably down to the fact that they couldn't get a credit report.

Here is a fun fact: in Australia, we don't have a unique identifier for credit reporting. In the US everything revolves around your SSN so it is very different here.

Notice every time you apply for credit they want to know your 10 previous addresses? This is to help them dig more dirt on you. The credit reporting agencies then use "fuzzy" logic to build a report. I know for a fact that they even do a best guess on dates of births!!!

I recently ran 2 credit checks on myself as a test. One was using my passport (which is only 1 year old) with my family home address (where I grew up as a kid - 25 years ago). That report picked up most of my credit facilities (but not AMEX, Bankwest , GE Creditline or Citibank).

Then I ran another report using my drivers licence, which I have had for 10 years, and my current address in Melbourne. Although I have changed addresses a few times the license number stays the same. That report found Bankwest, GE Creditline, but none of the rest. And still no AMEX or Citibank!

The thing also with comprehensive credit reporting, is that only the big 4 are compelled to do it. The others have to opt in. And most don't - because there is a lot of effort in keeping it up to date. For example, if you are late paying by 2 weeks, they can inform the credit agency how late, and by how much. And then when you pay, they have to update the report to say when it was paid. And if they don't do it in a timely manner, or if they make a mistake, they are fined. Most banks cannot be bothered with that kind of IT overhead - sending files each day, that have to be formatted exactly, to the credit agency.

I know that the bank I worked for didn't even report a late payment until it was months old (not 2 weeks as they are able to) because of this.

So I reckon, instant rejection meant they couldn't get your report based on the info you gave them.