If your credit card application is declined

Of course, it’s disappointing for an application to be turned down. In this guide we explain why this happens and how to improve your credit eligibility.

Lending decisions are based on a number of factors

At what point were you declined?

If you’ve just completed an eligibility check expandable section

Although it’s disappointing to be told you’re not eligible, the good thing about eligibility tools is, to make an eligibility decision only a 'quotation' or 'soft search' is completed.

Although this will be recorded with the credit reference agencies, it won’t affect your credit score or your chances of being offered credit in future.
If you’ve completed a full credit application expandable section

We do complete a full or ‘hard’ credit search if you submit a full credit application, i.e. not just an eligibility check. If you’re declined at this stage, it is recorded with the credit reference and it will affect your credit score.

It’s important to know that this could make it more difficult for you to get credit in future, especially if you make a number of full credit applications over a short period.

If you’re declined, to limit any further impact, you may want to wait at least 6 months before applying again. In the meantime, there are things you can do to improve your credit score and eligibility.

Other things to consider

Do you have a limited financial history? expandable section

If you’ve never had, or have very limited experience with credit, lenders will find it difficult to assess how well you’ll manage it. In turn, you’re less likely to get the lowest and longest lasting interest rates, or be approved for credit at all.

If you’re in this situation, there are additional things you can do to boost your credit profile:

Apply for a ‘credit builder’ card – it may seem obvious, but starting small and building towards the credit card you ultimately want may be a sensible step. Although they usually offer lower credit limits and higher interest rates, by using a credit builder card and repaying your balance responsibly, your credit score will slowly increase.

Use a bank account – setting up Direct Debits to make regular payments, e.g. for things like utility bills, can contribute to your credit score over time. Just make sure there’s money in your account to cover any payments, or you could find your credit score is negatively affected.

If your account has an overdraft, managing that effectively will also help.

Carefully manage commitments – keeping up with payments on store cards, services like your mobile phone contract or TV subscriptions, and other household bills, could all help to boost your credit score. You’ll need at least 1 account offering you credit of some description, for a period of 6 months or more, to generate a credit score you can build upon.
Do you have joint accounts? expandable section

Joint financial commitments, like bank accounts, mortgages and even utility bills, create a link between you and your partner. Even if the joint accounts themselves are managed well, if your partner’s credit score is low, that could also impact yours and your ability to get credit.

It’s worth working to improve both of your individual credit scores, or trying to keep your finances separate, to increase your overall chances of being approved for credit in future.
Are you planning to apply again? expandable section

If you’ve just been declined, it’s unlikely that you’ll receive a different result if you apply again with the same lender within a 6-month period, unless of course there’s been a significant change in your personal circumstances. Especially if it was a full credit application you submitted, you simply risk damaging your credit score further.

Different lenders have varying lending criteria, so being declined by one does not mean you’ll be declined by all, but multiple applications in a short period will affect your credit score and chances of being accepted, which is something to be aware of.

If you’ve been declined in the past and you’ve put effort into improving your credit record, the last thing you want to do is damage it again.

To help you avoid this, many lenders now provide an eligibility checker to help you to find and compare cards you’re likely to be accepted for, without impacting your credit score. The Lloyds Bank version is called One Check.
Can you appeal a lender’s decision? expandable section

Lenders have access to a lot of information to support a fair and considered decision making process, but you can ask for more information or appeal a decision if you wish, particularly if you’ve got additional information which may support your application.

To query a credit card, loan, bank account or overdraft decision made by Lloyds Bank, please write to:

Personal Lending Decisions
Three City Park
The Droveway
Hove East Sussex
BN3 7AU

Make sure you include copies of any supporting information, along with contact details so we can get back to you, including your full name and address.

It’s important to know, we may need to complete a credit search to review your application, in which case this would be recorded on your credit file:

For credit cards, we’ll review recent One Check/eligibility results first. If a search wasn’t completed when you originally applied, then we will complete a hard credit search when you appeal.

For loans and overdrafts, we’ll review any recent credit searches first. If a search wasn’t completed when you originally applied, then we will complete a hard credit search when you appeal.

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