Credit Card Application Rejection despite Great Score

booze101 on 27/09/2022 - 21:11

Hello,

Just wanted some advice on my next steps. I have recently been rejected from credit card applications with Citibank, now I know people get rejected randomly from there sometimes but I recently applied for HSBC card which also met with rejection.
Now my credit score is great when I did an inquiry with no outstanding payments or defaults. Classified as 'very good'
Only thing I can fault to is me owning 2 credit cards currently. I have good savings and currently renting.
Moreover, I recently applied for Commonwealth bank as well, rejected without credit check

My salary is alright as well and the only thing I can fault to is maybe because I have two credit cards currently (combined limit 16k).
I wanted advice in regards to how I can increase my chances of application in lets say a month or two? Should I try to gain feedback in more depth from banks (tried with Citi and had generic response of many factors etc)? Or should I cancel my credit card and wait a month or so?

Recently travelling overseas in 2 months and would really like a credit card for expenditure but apprehensive I'll get denied again.

Cheers!

Financial Credit Card

Comments

  • bobbified on 27/09/2022 - 21:19
    +4

    maybe because I have two credit cards currently (combined limit 16k).

    and

    travelling overseas in 2 months and would really like a credit card for expenditure

    What's wrong with using your two credit cards for travelling?
    (If you can't use them because they're both maxed out, that'll likely be the reason why you're being rejected for another one).

    • booze101 on 28/09/2022 - 08:18

      Not maxed out but have met the minimum spend. Waiting for points

      • kerfuffle on 28/09/2022 - 08:34
        +6

        So you opened these two this year? And applied for three other cards?

        No wonder you got rejected.

        • booze101 on 28/09/2022 - 09:37
          -6

          Question is going forward mate, not dwelling on the two cards…

          • kerfuffle on 28/09/2022 - 09:47
            +3

            @booze101: You applied for five credit cards in the space of a year (that we're aware of).

            That is why you got rejected for your last three applications. Too many applications in a short amount of time. Stick to one application every six months and perhaps your next one will be successful.

  • Danstar on 27/09/2022 - 21:27
    +11

    Depending on your income; you have no collateral by the sounds of it. Having the 16k debt is working against you. (It’s considered debt even if they’re at 0 balance)

  • coffeeinmyveins on 27/09/2022 - 21:42
    +3

    Only thing I can fault to is me owning 2 credit cards currently

    Lol that's literally it dude. Not that hard to work out

    You have 16k of debt and the new cc company is not wanting to compete with them to get money out of you if you have problems

    • booze101 on 28/09/2022 - 08:21
      -4

      Dude did you even read the question…

      • GordonD on 28/09/2022 - 08:54
        +2

        Dude did read the question.

        When they are considering you for yet another credit card, they have to ask why you want so many. And they have to consider the situation could arise where you have maxed them all out.

        I'd refuse someone ANOTHER credit card when they are making minimum payments on the debt they've already got, and want another credit card so they can go spend even more money and go further into debt that at some point they will have to stop spending and actually pay off.

        • booze101 on 28/09/2022 - 09:34
          -1

          Yes I realise that! My question was going forward on what to do and not asking why I got rejected lol

          • Mechz on 28/09/2022 - 13:03
            +1

            @booze101: What you do is stop applying for credit cards so frequently then after a year maybe have another go.

          • Danstar on 28/09/2022 - 13:30

            @booze101: Cancel your current cards before applying for a new one.

  • burningrage on 27/09/2022 - 21:47
    -3

    The new Comprehensive Credit Reporting scheme has landed you in this ridiculous situation unfortunately.

    This is why I am reluctant to close off my accounts because of this stupid rule that makes people with good income and history being rejected despite low (I consider $16k pretty reasonable limit) existing credit limit and they assume if you have a limit of $16k, it means you have a debt of $16k even if your balance is zero.

    Don't waste your time on Citibank but I know AMEX if you escalate higher enough, they can hint you the reason for refusal. Not sure with HSBC but knowing the bank, I think you may not have enough relationship with them.

  • USER DC on 27/09/2022 - 21:53

    Simple!
    just move onto another CC provider, never look @ HSBC again
    HSBC lost business from you too okay, as a positive way of thinking

  • Ughhh on 27/09/2022 - 22:16
    +14

    So you've had 3 credit card rejections recently? Might want to take a break, each rejection is probably increasing your chance of another rejection.

    • booze101 on 28/09/2022 - 08:19

      Yes ofc! I think i mentioned above that I will be taking a break, question was how long or if someone had a similar experience that they were able to share

      • Ughhh on 28/09/2022 - 12:39
        +1

        I wanted advice in regards to how I can increase my chances of application in lets say a month or two?

        Or should I cancel my credit card and wait a month or so?

        I wouldn't say a month or two is a break. Especially with 3 rejections.

        • booze101 on 28/09/2022 - 18:21

          Yeh I could've guessed that.
          Ps. 2 of those were no credit checks btw. The more I think about it, i think it's holding the 2 cards concurrently. Watch this space

  • Garrettau on 27/09/2022 - 22:50
    +4

    Good credit score does not allow you to apply more credit limit than you’re able to afford…

  • plmko on 27/09/2022 - 23:38
    +2

    Credits scores mean almost nothing in Australia.

    • Mechz on 28/09/2022 - 13:05
      +1

      Almost nothing, unless your score sucks, then it does.

  • AustriaBargain on 27/09/2022 - 23:39

    If you have savings why not use it to pay off the interest earning balance on the cards? If you need that money back for emergency in the future, just use your credit cards to pay for the emergency.

  • kerfuffle on 27/09/2022 - 23:51
    -1

    Recently travelling overseas in 2 months and would really like a credit card for expenditure

    So what did you use when you went overseas back in 2018?

    • booze101 on 28/09/2022 - 18:23
      -1

      what? are you stalking me…

  • Ehty on 28/09/2022 - 00:08
    +4

    My applications were also getting rejected due to same reasons , I had combined limited of 35K on my two cards which was against me.
    Fortunately when I applied for ANZ they called me to say that I am eligible for a lower limit card . While talking I asked if I closed one of the cards would that help and she sort of re did the application with one card only and the system accepted it..
    I closed my other card . Sent them closure statement and they issued me credit card.
    Probably you can chat a bit with them to get hints and ask them if closing card would help.
    I have done that few times too call multiple times and you may stumble on one helpful call centre agent who would give some hints.

    • booze101 on 28/09/2022 - 08:20

      Thanks! This is actually helpful
      I will close off my account as well after receiving points, just not sure how long to wait for another application after closing

      • Ehty on 28/09/2022 - 10:32
        +1

        In my case as like you I thought I had good credit score I applied for Citi, Suncorp and ANZ in the same week!
        Other option maybe to apply on phone and let the agent do the application and in between you may ask them the chances of rejection/ approval etc.

  • Vulgar on 28/09/2022 - 07:21

    I have been rejected before when I had 2 credit cards. What I do now is keep my low limit credit card and apply for new churn cards after I've closed the old churn card. Another thing that may contribute to your rejections is recent credit enquiries.

  • Hardlyworkin on 28/09/2022 - 07:31
    +4

    Because you're an Optus customer!

  • pantsparty on 28/09/2022 - 07:35

    Cancel the other two cards first

  • fullmetal on 28/09/2022 - 09:45

    I just tried to apply a card this morning with citi, got rejected. Trying NAB at least got to the document stage.

    • Mechz on 28/09/2022 - 13:07

      NAB has just taken over CitiBank ops in Australia.

    • booze101 on 28/09/2022 - 18:30

      Yeh I called Citi and even the rep was confused as to why i was denied without documents

  • Drakesy on 28/09/2022 - 10:32

    I've found that moreso with St George/Bank of Melbourne etc. they've been rejecting more often than usual.

    Generally if in the past you've been churning (no matter your score) they'll impose a cool off period even if they didn't provide the credit card and they've been cracking down more since covid.
    I used to be able to hold 3 no problems but have found anything more than 2 and they block me now.

    • booze101 on 28/09/2022 - 18:29

      Yeh Drakesy I second this! I think it's become a bit tougher and holding 2 cards won't help

  • Bargainitis on 28/09/2022 - 12:13

    its worth calling up Customer service and ask for some feedback. I suspect your income may not be high enough to justify the incremental liability. What card did you apply for with citibank and CBA? if you are going for the premium card (prestige and ultimate rewards), their requirements are higher.

    • booze101 on 28/09/2022 - 18:22

      good shout, income was fine. It's probably me holding 2 active cards tbh

      • DKZ370 on 28/09/2022 - 19:55

        As in, you spoke to them and they said income was fine?

        Not trying to uncover your income just thinking that your interpretation of 'income being alright' might not necessarily mean the CC providers see it that way.

        e.g. I don't think my income is alright although I've had 3-4 CCs at any given time with a significant CC limit as well.

        • booze101 on 28/09/2022 - 21:45

          True, so no direct discussion about income but when i mentioned my situation he said he didn't see a reason as to why i was rejected outright without submitting payslips etc.
          Yep exactly, I have held 3CC maybe 2 yrs ago as well with good limits, so was a bit surprised with recent ones but maybe they're stricter due to covid

          • MrMarket on 29/09/2022 - 14:46

            @booze101: new AI we are working on that detects people churning for points and we ban them from getting new credit cards.
            simple business decision, these are customers we don't want, front line staff would not know.

            • Danstar on 29/09/2022 - 15:45

              @MrMarket: Mustn’t be active yet or must be poor at detecting as I’ve churned about 12 cards in that last 4 years

  • El-Rhi on 28/09/2022 - 21:05

    Just wanted some advice on my next steps

    1 - cancel your existing cards, and/or
    2 - increase your income

    • kerfuffle on 28/09/2022 - 21:30

      3 - stop applying for so many cards in a short amount of time

      • booze101 on 28/09/2022 - 21:49
        -1

        @kerfuffle for you 1. Don't stalk others profile

        • kerfuffle on 28/09/2022 - 21:56

          Don’t post on the internet then; easy. Not hard to go through your post history when all you do is take and not give back.

Login or Join to leave a comment
Login Join