Common questions - Credit card application

What happens next after my online application has been completed?

If your application has been successful, then you should receive your new credit card in the next 7 to 10 working days.

If we have been unable to give you an instant decision, we will contact you within the next 10 working days with news as to the success of your application.

In the meantime, if you would like to enquire as to the status of your application, please call us on 0845 303 0344. You will need your application reference number which was provided during the application process.

What happens if I lose my job or cannot make my repayments?

Nobody likes to think about accidents, illness or being made involuntarily unemployed. However, it makes sense to ask who would pay your credit card bills if you couldn't. Our Cardholder Payment Protection Insurance is optional cover that could take care of your credit card bill if you can't.

Defaqto is an independent financial product research company. They gave our Cardholder Payment Protection Insurance a five star rating so this really is cover you can trust.

If you didn't choose to take out Cardholder Payment Protection Insurance during your credit card application you can easily add this option either when you call to activate your credit card or afterwards by simply calling the number on the back of your card.

Find out more about payment protection

I'm having problems with the online application. What should I do?

If you need any help filling out the online application, please call us on 0845 246 4175 (Minicom 0845 900 5960) and we'll be happy to help.

Why may my application be declined?

In general your application can be declined for two reasons:

1. A scoring decision where your overall score was not sufficient to reach our acceptance pass mark.
2. Specific lending policies e.g.: as a responsible lender it is not our policy to offer credit to applicants who may find it difficult to meet the repayments. You will always be advised of the reason where your application has been declined due to a policy rule. We would stress that if your application is declined it may not be due to information supplied by the Credit Reference Agency but rather due to other details obtained during the application process.

Could I have been declined just because of the area in which I live?

No, such practices are illegal.

I have other credit accounts with you, why have you refused my request this time?

Your individual circumstances change over time. Our assessment takes into account any current information that is available to us. It may, therefore, be inappropriate to offer you additional credit on this occasion.

Can I appeal against your decision?

Yes, although we cannot give any assurances that our original decision will be overturned. You should support your appeal by providing any additional relevant information that was not taken into account at the time of our original decision. Full details of our appeals procedure can be obtained from your local branch.

Can I re-apply?

Your circumstances can change over any given period and we will be pleased to consider a new application from you in due course. However, if your circumstances have not changed since your last application it is unlikely that our decision will change. We will not refuse any application just because we have declined a previous one.

Will the fact that you have declined me mean that other lenders will automatically decline me?

No, each lender's experience and credit scoring system are different. The Credit Reference Agency used will, however, record the fact that we carried out a search against you and advise any other lender you apply to, who uses their service, of this fact.

What can I include as 'Income' when completing the application form?

You should include all of your monthly earnings. For 'Income' you can include all of the following:

• Net salary (i.e. after tax)
• Pension
• Disability Living Allowance
• Net income from investments

You can also include any sources of guaranteed income such as child benefit, any other state benefits and any other net (i.e. after tax) regular income you receive. Please note that in some cases we may need to confirm your income but we will contact you if this is required.

What is a credit reference agency?

Credit reference agencies maintain records on an individual to assist lenders in assessing credit applications. These records include information such as:

• Electoral roll status
• Information on the performance of previous and existing credit accounts which many lenders provide to the agencies
• Names of people with whom you are financially associated
• Details of previous credit reference searches carried out by other organisations
• Bankruptcies and insolvencies
• County court judgements/court decrees

The main credit reference agencies in the UK are Equifax Plc, Callcredit Plc and Experian Ltd.

Can I check the information held about me by a credit reference agency?

You may write to the Agencies or contact them online for a copy of your file. The statutory report costs £2. Details of the three main Agencies are as follows:

• Equifax Plc, Credit File Advice Service, PO Box 3001, Glasgow G81 2DT
  www.equifax.co.uk
• Experian Ltd, Consumer Help Service, PO Box 8000, Nottingham NG51 5GX
  www.experian.co.uk
• Callcredit Plc, Customer Service Team, PO Box 491, Leeds LS1 5XX
  www.callcredit.co.uk

As well as giving information about you, the file will also provide the names of people with whom you are financially associated. When applying you should provide any names you have been known as (e.g. maiden name) or any addresses you have lived at within the last 6 years.
When you apply for a copy of your file, the Credit Reference Agency will issue along with it details of what to do if you feel that you file contains any inaccurate information and what actions can be taken to correct it.

What is credit scoring and why do lenders use it?

Credit scoring is used by many lenders to assist them in making credit decisions. It is used to assess applications for certain credit products and to open accounts where credit is required.
It is a proven statistical technique which allows the lender to predict the likelihood of credit being satisfactorily repaid and is widely recognised as one of the most consistent, accurate and fair forms of credit risk assessment.

We calculate your credit score using the following types of information:

• Information that you provide during the application process
• Credit reference information e.g.: whether you have kept your payments on your credit accounts up to date or whether you have been in arrears
• Any existing or past account performance with us, e.g.: previous loans

The credit scoring system allocates points for each piece of relevant information and these are added up to produce a score. Provided your score reaches a certain level and meets our other policy requirements we will generally agree to your request. In order to protect the integrity of our systems, the way we calculate your credit score must always remain confidential.

Do you take into account Credit Reference information against my family or any other person?

Only if a financial association has been created at the Credit Reference Agency between you and a family member or other person, e.g.: you have made a joint application or if you have declared an association directly to the credit reference agency.

Can I be refused credit because of the credit history of the previous occupants at my address?

No. Unless you are financially associated with the previous occupants, their credit history will not be used in assessing your application.

MoneySense

Dealing with money is a daily reality for adults and most young people. MoneySense offers free, impartial advice about money management, right from school age through to every stage of life. It includes all the information you'll need to help you understand and manage your finances.

Find out more about MoneySense