You have chosen a Pay monthly catalogue, applied for the Credit facility and then to your surprise you get rejected.
For many, the decline can come as quiet a shock especially if you only placed a small order or are not aware of any reason why you have been declined.
One of the leading free credit reference agencies (Clear Score) actually score you negatively if you don't have a Home Shopping account (catalogue account) and for some opening an account just to remove that negative seems the obvious choice and for others, Catalogues are a great way of building or rebuilding a credit rating.
For many who get declined come the worry that something is wrong, after all, a lot of the time the customers who have been declined already hold Credit cards or other forms of credit.
For others they have heard that Catalogues are an easier form of credit that you can get and it's a good way to start rebuilding your credit rating.
It is worth noting that all Catalogues are different.
Each will have it's own demographic to the customers they are looking for and that includes the risk levels they are prepared to take.
Some people will get a decline and move on, however, We are going to look into the appeal process.
Is appealing a declined application actually worth it?
Does appealing even work?
Does appealing a Declined Credit application work?
Interestingly for a large majority of customers a decline is just that. They just don't find out why or consider making an appeal
Even more interestingly is that a large majority of declined applications that are appealed are actually overturned.
The One Million Dollar Question is finding out why a Catalogue application was rejected.
In our own opinion the moment you make the application for a credit account it's cost you a Credit search right?
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 you the more it could damage your overall credit rating.
So the fact that you applied for a Catalogue in the first place and got declined is a small problem that we could look at overturning.
One of our own biggest pet hates on this matter is the statement that Credit companies provide. Most will say something along the lines of…
The decision remains confidential between you and them and that no one else will know.
Surely if we look at the logical side of this, everyone will know.
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 really have any answers to your application and will rarely put you through to a Manager or even an Underwriter to discuss this and look into things for you. They are however more likely to read you a script about credit scoring and it's highly unlikely they will listen to your comments or appeal let alone go away and speak to an underwriter to relate your message to them.
Underwriters drink black coffee, eat an apple for lunch and love to make your life a misery
Underwriters are usually boring men and women who grow beards (Well the men anyway), drink black coffee, eat an Apple for lunch and have no sense of humour. They have one job purpose and that's to make you revel in their decision to decline you. They want to cause the biggest amount embarrassment they can.
Of course that's not actually the case, In reality, Underwriters are your best chance in over turning a decision that a computer has usually made.
Send Your Appeal in writing.
It doesn't make too much difference if it's Email or Letter, Letter is of course most likely to arrive to the correct person, but Email is fine if you want to speed up the process.
What to include in an appeal
Be Prepared, craft a small but straight to the point argument. They don't need to know your life history, they are not interested in your Great Aunties ingrowing toe-nail or the fact your Roses are starting to bloom.
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 (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
- It may be your Health suffered and you was unable to work which had a negative effect on your finances
- You may of had to take time off work to help care for someone which meant reduced hours at work and therefore you missed payments
What ever your reasons in believing you should be approved, include them.
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.
Send them a letter providing your Name, Address, Date (and time) if you remember of the application, include your Date of Birth for data protection and just simply send them a Polite note.
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 find out that my application for a credit facility was rejected.
I Understand that the reason for the decline remain confidential however, I realise the decline may of been (Insert why you feel they may of rejected your decline, such as Missed repayments, A Default, CCJ etc).
I would like to explain the reason this happened (Insert reason)
As you can see, I would really like to shop with your Catalogue company, you have lovely items and I am doing everything I can to rebuild my credit rating. I have taken some time out today to send you a letter. I would really appreciate you taking a look at my application again considering the information I have supplied.
Sometimes you may be declined due to affordability concerns.
You can always include evidence such as bank statements, letters from Benefit organisations, wage slips and even a Small Budget to help you make your appeal.
Remember, if you have CCJ's, Defaults or Missed payments you can explain why these happened. tell them about nasties on your credit report, Remember the reasons are never displayed on your Credit Report, all any lenders will see is whether or not you made your repayments on time.
Keep it human, explain about a new job, promotion or give them just a little background on why you felt the application has been declined and why you feel it shouldn't of been rejected.
Email or Post your appeal
Send the email to the correct department. Look on the Catalogues website or call their customer service department and ask for the address for the Credit Department. If you are posting the letter, ensure you call or find the correct address for the Underwriters or Credit Department
Sit back and wait
Allow the company to look over your letter.
You should include a telephone number on your appeal as the company may decide to call you to inform you of the progress.
Remember sometimes an application can be declined for the oddest reasons, you may be able to clear up any concerns they have
What is the appeal doesn't work
It's obviously not going to work 100% of the time, but you have nothing more than a few minutes of a time and maybe the cost of a stamp to try. It's not going to be successful every time, however, if you can overturn the decision it's going to be well worth it
Remember to include the following in your appeal letter
Make sure you include your full name address and post code, include only relevant information, short and swift, straight to the point information to help them understand what happened and why you are appealing. Always try to provide evidence that you feel is relevant and could help them understand your circumstances.
Ask them to contact you on the telephone or email and just wait, keep your fingers crossed and do let us know how you get on
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.