Why would my partner be refused a credit card?

ellave on 14/01/2016 - 13:42
Last edited 15/01/2016 - 09:11

update we did a credit check last night she got a score of 780/1000, so not sure whats going on, however looks like i'll be flying business class & she can stay in economy

Yesterday me & the misses both applied for the ANZ ff card with 75000 points. Both of our applications were referred, mine come back an hour later accepted, hers took a few more hours & came back refused.

We both have very similar incomes over $110k, I have $14k car loan & 2 other credit cards with $0 balance, she has no loans & 1 other cc wtih $0 balance & we both have similar amount of cash savings & shares. I told her to call them & ask why it was refused, is it really a case of them not wanting to lend to someone that has no debt??

Financial

Comments

  • massivedmg on 14/01/2016 - 13:47
    +1

    She might be hiding a debt from you, or she might have missed a lot of payments on the one credit card she has or she might have been rejected for a lot of credit card applications in the past.

    Check on an online site to see what her credit score is.

  • cDNA on 14/01/2016 - 14:18

    How well do you know your girlfriend? She might be hiding something from you.
    If you're really that keen on the ANZ card then go into a branch and ask them for advice.

  • ellave on 14/01/2016 - 14:22

    There is nothing sinister going on, she has no other debt. i will get her to check her credit history though thinking back a few years ago she had a lot of issues getting her name removed from a lease when she vacated a property, that could have left a stain on her record.

  • StewBalls on 14/01/2016 - 14:42

    Tell her to get a home loan, it's scary how they start throwing credit at you…you start getting pre-approved & pre-completed application forms sent to you for a plethora of credit facilities…you've just got to sign them & send them back in the postage-paid envelopes provided. ;)

  • BigTed on 14/01/2016 - 15:11

    Sometimes they are worried about changes in circumstances (pregnancy???)
    Sometimes they want to limit exposure
    Sometimes it just makes no sense at all.
    Good luck with the Missus.

  • the-mal on 14/01/2016 - 15:31

    I told her to call them & ask why it was refused

    They probably won't tell her. Their selection algorithms as to who they approve and who they don't are fairly closely guarded.

    Get her to check her credit report for free. There are quite a few online sites that do it immediately for free now, eg www.creditsavvy.com.au

    I had a hard time getting a phone plan once because I had been loan and credit card free until I was ~29 years old. I had a heap of cash in the bank (thus no need for a loan or credit card) but credit check systems simply didn't know I existed and that brought up red flags. It could be something simple, a credit check will probably show up why.

    Remember banks don't want to provide credit to people who will always pay it off, they rely on people to use credit and pay interest…so there are lots and lots and lots of reasons why they don't want to lend, and not all of them are necessarily bad.

    • chumlee on 14/01/2016 - 18:56

      lol. "banks don't want to provide credit to people who will always pay it off, they rely on people to use credit and pay interest"

      Have you heard of responsible lending legislation?http://asic.gov.au/regulatory-resources/credit/responsible-lending/

      If a bank gave you a credit card knowing it would cause you hardship you have recourse against the bank and most likely the bank will need to forgive your debt.

      • the-mal on 14/01/2016 - 21:34
        +3

        Have you heard of responsible lending legislation?http://asic.gov.au/regulatory-resources/credit/responsible-lending/

        Sure have. Have you looked at the latest statistics?

        Australians owe ~$32 Billion in Credit Card debt. The current average debt is $4,300 per credit card holder and the average credit card holder pays $700 in interest per year.

        Stats here: https://www.moneysmart.gov.au/borrowing-and-credit/credit-ca…

        Banks don't have to cause legally definable "hardship" to reap in monster profits. You can "lol" as much as you like but banks need a return on lending, they won't lend on a 0 fee or low fee credit card unless there's a high probability of a return (ie interest being paid). If you look like you're always going to pay a card off in the 30 day interest free period on a low fee card you'll be lucky to be approved, and if you are they will keep your credit limit low because you're not worth anything to them.

        The real "lol" is if you're naive enough to think the banks are working in your financial interest as a customer. They work within the legislation but they work for profits and shareholders. They lend you credit to make money. They store your savings and invest them to make money.

        • chumlee on 15/01/2016 - 06:36

          The pot of gold for banks with credit cards is interchange fees.

        • the-mal on 15/01/2016 - 08:28
          +1

          @chumlee: Yeah I'd wager a guess at saying the $32 billion in owed credit and 5.4 billion annually in interest paid isn't inconsequential.

          What are interchange fees? Around 0.4% or 0.3% on transactions? And these are also used to fund the rewards programs.

          Interest is 15%-20%. I'm pretty sure banks are quite attached to that $5.4 billion in annual revenue which is all down to lending to people who won't regularly pay back within the interest free window.

  • dazweeja on 14/01/2016 - 17:46
    +1

    They look at her CC limit, not her balance. If she has a $10-15K limit, then in effect she has a pre-approved loan of that amount which she could max out at any time. They perform their calculations assuming all limits are maxed out - and what payments she would need to service that debt in a worst case scenario - and it actually makes sense to do it that way.

  • bluebat on 14/01/2016 - 18:45

    Like everyone else has advised, get her cr checked.. Rule out the possibility of identity theft..

  • ellave on 15/01/2016 - 09:11

    we did a credit check last night she got a score of 780/1000, so not sure whats going on, however looks like i'll be flying business class & she can stay in economy

    • noxsync on 15/01/2016 - 14:05

      My credit score is 795/1000 and I don't earn anywhere close to what you're earning yet I just got approved.

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