CC Application Declined Instantly

[Happy Dude]

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

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

Nuh-uh. Despite the fact that you yourself have given several other reasons why banks decline, it's pretty obvious that the OP doesn't present a credit risk. The forums are awash with similar stories, eg six figure salary, minimal expenses, own property etc etc, and still being rejected. So unless they and the OP are embellishing their financial position, then your banal dismissals are simply incorrect. Perhaps things have moved on from "your time", particularly in the post-royal commission era.

 

[froggerADL]

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).

This is very interesting. Do you know what is likely to happen if I use an expired driver's licence in a credit application?

My current passport is only one year old and my driver's licence expired one year ago. Is an expired licence able to be used for a bank's credit checks?

 

[Max Samuels]

This is very interesting. Do you know what is likely to happen if I use an expired driver's licence in a credit application?

My current passport is only one year old and my driver's licence expired one year ago. Is an expired licence able to be used for a bank's credit checks?

The number of the license is the key - whether it is expired or not is irrelevant.

 

[Max Samuels]

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

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

I would tend to agree. Although we do hear about people being declined for weird reasons, I think it is unlikely the bank would decline you because you were going to be paying off the balance each month? That seems a stretch. Plus, from the info provided in an application, they cannot see whether you pay it off in full each month anyway. They can only see your credit limit.

Having worked on credit risk modelling before, I cannot say I have ever seen a model whereby they want to choose someone because they are riskier..... it makes no sense?

But is not just banks.... Red energy declined me. WTF? AGL of course approved me. No idea why.

 

[Happy Dude]

I think it is unlikely the bank would decline you because you were going to be paying off the balance each month?

Yes, and on the flipside, I think that you are not a credit risk if you don't. It's what the banks want. I posit that the OP is neither a big spender or a revolver and thus declined him.

 

[Fruit1008]

By my experience, I find it's relatively easier to get a card from those big four banks than other banks

 

[theblank]

Nuh-uh. Despite the fact that you yourself have given several other reasons why banks decline, it's pretty obvious that the OP doesn't present a credit risk.

Nobody knows what really happened, and whether the OP has represented his story accurately, or missed an important detail (no disrespect intended) so you cant make the determination that there is no credit risk.

The forums are awash with similar stories, eg six figure salary, minimal expenses, own property etc etc, and still being rejected

Ditto.

Example a 25yo truck driver earning 6 figures in the mines is a HUGE credit risk. Thats got nothing to do with his financial position.

then your banal dismissals are simply incorrect.

Already told you why your crazy idea doesnt fly, I dont have anything more to add - thats not a banal dismissal.

Perhaps things have moved on from "your time", particularly in the post-royal commission era.

proposing the 'post-royal commission era' is contradictory to your argumment.

 

[Happy Dude]

So, nobody knows anything which means we're all just speculating. But your speculations are the only possibility, even though the banks are desperate to hand out credit but the OP must be a credit risk despite his implications otherwise. Righty-o then.

 

[Pocketesq]

Working in the finance areas and doing a lot of research on credit cards, I'm told (and maybe this is just rumour but it makes sense as my credit score is considered excellent from the reports i've paid for) that while credit scores are taken into consideration, it's also behaviours of people like us who do like signing up to high points credit cards, using them and then cancelling them after we receive the points and moving onto the next promo. We pay off interest quickly, dont have any loyalty and that doesn't stick with many banks.

Everytime you apply for a credit card, it's a mark so I think it sounds like there has to be some timeframe you have to wait before acquiring another (I did three last year, cancelled two and since then I get instantly declined for any I apply for and I'm told I should stop doing it and wait for a few years before doing it again!)

 

[exceladdict]

I read in an ABC article today that according to Fiona Guthrie from Financial Counselling Australia, "...banks now have to assess whether you can repay a credit card over a period of three years," Ms Guthrie said. That change is significant because previously banks only looked at whether someone applying for a credit card could meet the minimum repayments — which is usually between 2 and 3 per cent of the balance.

One could theoretically reverse engineer this equation based on their monthly disposable income to work out whether they're likely to be approved (from a servicing perspective) for a given credit limit.

 

[casanovawa]

People don't like airing their financial details but i wonder if a wiki at the top of this or a new page detailing members experience applying for cc's from various lenders and which banks knock back the most often or for seemingly no reason might be helpful??? If in recent times some lenders have become tightwad scumbags, well members can direct their business to lenders who aren't going to put a decline on their credit file and won't make us jump through ridiculous hoops...

 

[exceladdict]

People don't like airing their financial details but i wonder if a wiki at the top of this or a new page detailing members experience applying for cc's from various lenders and which banks knock back the most often or for seemingly no reason might be helpful??? If in recent times some lenders have become tightwad scumbags, well members can direct their business to lenders who aren't going to put a decline on their credit file and won't make us jump through ridiculous hoops...

If people are willing to share declines, I agree it could be helpful to others. Something like this, for example (hypotheticals):

Time	Lender	Product	Requested/Minimum Limit	# Other Cards Held	Decline Reason or suspected reason
Jul 2017	ANZ	Qantas Black Visa	15k	0	Did not meet the minimum income requirement (75k)
Nov 2019	Citi	Qantas Premier	8k	3	No reason supplied. May have the 9 other applications this year

 

[casanovawa]

If people are willing to share declines, I agree it could be helpful to others. Something like this, for example (hypotheticals):

Time	Lender	Product	Requested/Minimum Limit	# Other Cards Held	Decline Reason or suspected reason
Jul 2017	ANZ	Qantas Black Visa	15k	0	Did not meet the minimum income requirement (75k)
Nov 2019	Citi	Qantas Premier	8k	3	No reason supplied. May have the 9 other applications this year

Yeah, and have it as a wiki up the top of the page so people don't have to sort through 20 pages etc looking for individual examples... I haven't applied for a new cc in about 12 months so not sure if banks have started requiring a lot more details etc in the wake of these royal commissions as well, so anyway, just an idea to make it easier in the new nanny state reality catering to protecting total newbs but which will hinder the bunch of us who do have a rough idea of how the old system used to work and how we could tweak or use it to our advantage....