If you have applied for a pay monthly catalogue decision and been rejected you can either choose to move on or you could consider appealing the decision.
For Some, the decision may come as a shock, Being declined for any sort of credit can be a Surprise, especially if you are unaware of the reasons behind the decision.
Catalogues can be good for Credit ratings
One of the leading free credit reference agencies (Clear Score) which works with Equifax actually score you negatively if you don't have a Home Shopping account (catalogue account).
Some may choose to open a Catalogue account for that very reason.
Catalogues are also a great way of building or rebuilding your credit rating.
Was I declined due to a mistake?
The first thing to consider is why the Catalogue company rejected your application.
Could it be some information held at the Credit Reference agency for example?
The decline can be an even bigger shock if you already hold Credit Cards and other forms of Credit.
Check your Credit report to see if there is anything showing which could of contributed to their decision.
Are you trying to rebuild your Credit
It's common knowledge that Catalogue companies are easier to be accepted for than Credit Cards. For that reason Catalogue companies receive a lot of applications from those who have had previous credit problems, of course, that doesn't mean you are always going to be successful.
Every Catalogue company will take on some risk, but you do have to be aware that the older the neagtive information is, the better.
Every Catalogue will have a different credit scoring card
It is worth noting that not all Catalogues are the same. In fact, each catalogue company will have a different Credit Scoring policy, this means whilst you may be rejected with one Catalogue company, you could be successful for another.
Each catalogue will have it's own demographic of customers they are looking to accept and that includes the risk levels they are prepared to take.
Some people will get a decline and move on, however, it could be worth appealing, We did it and it worked.
Appealing a Declined Catalogue Application
So to begin with, let me assure you that appealing a “Declined” Catalogue application can work. It's not guaranteed to be successful but as it only takes a few minutes to do, it could well be worth it.
Interestingly, Catalogue companies don't receive a huge number of appeals. For the most part, customers who are declined don't even bother into finding out why they have been rejected.
Even more interestingly is the fact that those who can be bothered to find out more, can actually enter into dialogue with the Catalogue company and many can convince the Catalogue company to overturn their original decision.
The One Million Dollar Question is finding out why your Catalogue application was rejected.
Catalogue appeals are FREE
In our own opinion the moment you made the application for a credit account with the Catalogue, it's affected your Credit rating slightly, each application is registered with the Credit reference agencies. So for that very reason, it's worth attempting to see if you can overturn the decision.
Each Credit search is recorded against you and will remain on record for between 12 and 24 months.
The more Credit searches you have against your name, the more it could affect your overall credit rating.
One of our own biggest pet hates on this matter is the statement that all Credit companies provide. Nearly all of the companies who decline credit will use a line similar to this.
Thank you for applying, although your application was unsuccessful this time, please be assured our decision will remain confidential.
Surely if we look at the logical side of this, everyone is going to know. We mean of course, Companies you apply to in the future and those who are currently doing business with you.
When you apply for credit the lender you are applying to will see how many credit applications you have made in the past 12 months.
They will also see how many new credit accounts you have opened.
If you have made an applications for credit in the past 6 months and have not opened a single credit account in that time, surely it's going to scream to any potential lender that you were actually declined.
For that very reason I strongly believe an appeal is actually worth it.
How do I appeal a declined catalogue application?
There are several ways to appeal a declined credit application.
You can Email, Telephone or Write in.
Telephone in an appeal
Some people will choose to telephone the company to discuss the decline. I don't recommend this as a good way of trying to appeal, I will explain why.
When you call you are likely to be answered by a Customer service Rep.
They will not usually have access to anything other than the final decision.
They won't usually have any answers to your questions about why your application was rejected and they will rarely put you through to a Manager or an Underwriter to discuss this further.
They are more trained to read you a script about credit scoring and it's highly unlikely they will listen to your comments or help you make an appeal let alone go away and speak to an underwriter on your behalf.
Underwriters are not normally contactable…
Underwriters don't usually take calls from customers. They don't take comfort in declining applications, in fact, they have a job of balancing Risk and Profit.
In reality, Underwriters are your best chance in over turning a decision that a computer has usually made.
So it's worth contacting them directly.
Send Your Appeal in writing.
It doesn't make too much difference if it's in Email or Letter format.
Letters can be addressed directly to the Underwriters or Lending manager, but Email can work up fine as long as your first email to the Catalogue company is to ask which department you should send an appeal to.
What to include in an appeal
Be Prepared, Draft a small but straight to the point Letter or Email.
They don't need to know your life history and they are not interested in your Great Aunties ingrowing toe-nail. You need to remember, it's the important information that's going to Swing the decision for you.
Have a clear idea what to include in an appeal
Suggesting for appealing a Declined Catalogue
- If you have a bad credit rating due to previous Unemployment or illness (explain this in your letter). If things have improved now, you can include a quick description about the problems that occurred and that you are now in secure employment or have the means to repay any borrowings.
- It may be your Health suffered and you was unable to work which had a negative effect on your finances, you don't need to include proof, but if you do include it, this will help them understand why problems occurred in the first place.
- If you had to take time off work to help care for someone which meant reduced hours at work and therefore you missed payments, ensure you mention this.
If you have negative marks on your Credit report, try to include any reasons behind this. If of course, you can't pinpoint the reasons (such as you have no payment issues) it could be useful demonstrating you can afford further Credit.
It may be the case you wasn't rejected purely on Credit History, but maybe due to affordability issues.
Be Prepared to supply evidence
It's fine to send them proof of employment or bank statements to back up any claim you are making.
You can send them anything (or copies) to help them understand your situation.
What else do I include in an appeal?
The main purpose of your letter or email is to show them you can afford the repayments and to show them that you really wanted to do business with their company.
Your eventual aim is to have someone look over what you say and take another look at your application.
Appeals can and do work
We have first hand evidence that appeals can and do work.
Remember to include your Name and Date of Birth and if you remember, the date you made the original application.
Say something along the lines of..
I recently made an application for a Pay Monthly Catalogue with your company on (Insert date).
I was disappointed to hear my application was unsuccessful.
I Understand that the reason for the decline remain confidential, However, I realise the decline may of been because (Insert reasons you feel could of influenced their decision).
I would like to explain the reason this happened (Insert reason)
I would really like to shop with your Catalogue company, I have taken some time out today to send you this appeal and I would be really grateful if you could look over my application again with the information I have supplied to support my application.
Sometimes you may be have been declined due to affordability concerns.
You can always include evidence such as bank statements, letters from Benefit organisations, Wage Slips or even a Small Budget to help you make your appeal.
Remember, if you have CCJ's, Defaults or Missed payments, Explaining why these occurred can help them understand the situation more clearly.
Keep it human, Explain about a new job, Promotion or Increase in your Annual Salary.
Email or Post your appeal
Send the email to the correct department.
Look on the Catalogues website for the address or call the Catalogues customer service department to request the full address or best email to use.
Sit back and wait
Allow the company to look over your letter and to consider your appeal.
You should include a telephone number on your appeal so that the Catalogue company can discuss any concerns they have. They don't usually call, they will usually write with a response.
Remember sometimes an application can be declined for the oddest reasons, So by including a telephone number , You should be able to clear up any concerns they have.
If the appeal doesn't work
Once you have made your appeal you will just need to be patient.
If the Catalogue company stands by it's Original decision and doesn't overturn the decision, then your only option is to try and find out why your application was rejected.
Appeals don't work 100% of the time. However, they do have a great chance of success. So for that very reason appealing the decision can be worth the time.
If you are going to Email your Appeal be sure to include…
Make sure you include your full name address and post code and Date of Birth. It's worth noting, that due to Data Protection laws, they may not be willing to discuss the decision through email. They may instead send you a letter or telephone you. You can still Always try to provide evidence that you feel is relevant in your original email.
If your decision isn't overturned, you could always try a different Catalogue brand or even a Catalogue with no Credit Checks, Check out the link below for full details.
Looking for a Pay monthly catalogue with credit to help you spread the cost of items? We have one of the largest directories of home shopping pay monthly catalogues online.