Credit Card applications being rejected for "Not meeting internal lending criteria"

alakar on 16/09/2020 - 09:35

Hi fellas,

I have applied for ANZ FF Platinum about a month ago, and got rejected. Then last week, I tried HSBC platinum card (I thought that would be fine as I have an existing account with them) - but still, got rejected.
All for same reason - 'Internal lending criteria not met' - I asked them and they said they cannot disclose!
I am just getting frustrated as this is affecting my credit score in negative way (to my knowledge) and just keep getting rejected.
Bit of my background, was an employee at QLD health(1.5 years) and now self employed as contractor (healthcare professional) for about 4 months now.
Decent income, no outstanding debts, no mortage, no personal loans, no prior credit cards usage, has a good amount of savings.

Does anyone has / had been in same situation? Shed some light for me please.

TIA

Financial Credit Card

Comments

  • apsilon on 16/09/2020 - 09:38
    +27

    My guess is it's the part about being self employed for 4 months. Not enough history to prove income at a risky time.

  • contrafibularities on 16/09/2020 - 09:40

    Maybe get a credit report in case there’s something you don’t know about on your rating.

    • alakar on 16/09/2020 - 09:46

      I have got an Equifax report, but it just essentially stated 'Credit enquiry' (which I applied for ANZ card) and nothing much

  • Shadowsfury on 16/09/2020 - 09:50
    +5

    Not surprised they won't tell you what the criteria is - they're opening themselves up to you lying just to get around the criteria they tell you.

    I suspect its as mentioned above, self employed for too short a period.

  • Serathis on 16/09/2020 - 09:53
    +1

    That's usually the case of self employment, I heard it's at least 1-2 years before you can do any sort of credit applications.

    • alakar on 16/09/2020 - 10:06

      I have a friend who has about 4 years, and again it was rejected as well

      • Serathis on 16/09/2020 - 10:46
        +2

        Could be other factors too; inconsistent cash flow etc. Basically self employed = high risk.

  • Drakesy on 16/09/2020 - 10:25

    Yeah, contractors are unfortunately getting a raw deal with credit cards at the moment. Since going to full time - fixed term contract work (and a 30% pay boost) 3 of my last 4 applications have been rejected even with no outstanding debts.

    Although this might have something to do with it being Citibank…

  • burningrage on 16/09/2020 - 10:39

    About 2 months ago, I applied for Virgin Credit Card (Low fee one).

    As per OP, good income, low mortgage, etc etc. Got declined. It dents my Credit Score because of new enquiry addition. At that time, I was employed less than a year (job poaching and stuff).

    They didn't disclose the reason. I raised a complaint mainly because when I discussed the issue about it, I was told to send more documentation but when I sent it to them, I never got an acknowledgment to say it has been received safely (so a professional misconduct complaint). But along the complaint, I also raised the issue of not disclosing the reason because if no reason, then I don't know what to improve.

    Their customer advocacy unit came back to me exactly at the end of the promised date of reply and this is what they said:

    "Our responsibility under the National Consumer Credit Protection act is that we cannot increase a limit, enter into a credit contract, offer or suggest a credit contract or credit limit to a consumer or assist a consumer to apply for a credit contract if the credit contract is unsuitable for them. For this reason, we take particular care to ensure that the steps we take to assess all credit applications meets the criteria of this act.

    Due to the commercially sensitive nature of our credit criteria we are not obliged to disclose how a decision was reached, unless the decision was based on a prior default listing discovered on your credit file."

    No doubt, a copy and paste reply but big 4 would be more decent but obviously from OP experience, it's not.

  • whooah1979 on 16/09/2020 - 11:33

    Banks were criticised for being too easy on people wanting credit before the Royal Commission. They are now being inundated with complaints about being too strict.

    Customers that don't meet the risk requirements are a bad investment. This applies to both MNC and sole traders alike.

  • boomramada on 16/09/2020 - 11:33

    You are going for premium CC, they are hard to get into unless you have a permanent/long term contract job job or home loan with them.
    For time been, your options are Woolworths Credit Cards or 28Degrees or something similar.

    • Neoika on 16/09/2020 - 13:50

      Woolworths CC by MQ pauses all applications.

    • mincemeat on 21/09/2020 - 11:18

      28 Degrees will give you one with little to no checks..as long as the borrower is really responsible with paying it off every month, and not let them give 5 figure limit.

  • ausdday on 16/09/2020 - 12:04

    Computer says no

    • alakar on 17/09/2020 - 09:43

      Computer?

      • whooah1979 on 17/09/2020 - 09:49

        Yes, computers.

        Lending algos are run on computers.

        • alakar on 17/09/2020 - 10:01

          Do you think if I start with some basic / entry level cards, there is more chance to upgrade to premium/rewards cards later?

  • Blue Suby on 16/09/2020 - 12:25

    Do you have a CC with anyone else? In spite of having no debts the limit on CC is deemed as a 'debt'

    • alakar on 17/09/2020 - 09:43

      I have never held a credit card with any banks before.
      I let them choose the limit for this credit card as well.

  • MarsTitan on 16/09/2020 - 14:30

    If you are a medical doctor, then try BoQ specialist and try to talk to a consultant before applying.

    • alakar on 17/09/2020 - 09:42

      Is there a special promotion for a medical doctor?
      'talk to consultant' - is it the same person that I need to talk to when I'm applying for a card?

      • MarsTitan on 18/09/2020 - 02:05

        They generally have special promotions for students, interns and doctors for both personal and business loans. Best to give them a call and ask for more information and special promotions.

        Yes, the consultant can apply the application on your behalf (you still have to fill the forms etc.).

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