I applied online for a credit card with Halifax, which failed because of a “system error”. Halifax said it was a temporary fault and I should wait a few days and reapply. I did so a few weeks later. This was also rejected. Soon after, I found both applications were listed as “hard searches” and had affected my credit score.
It turned out my first application was approved but didn’t go through because of the system error and was listed as a failed attempt on my credit history. The second was rejected as it appeared the first attempt had failed less than 30 days previously.
Halifax said both searches would be cleared in 30 days. They weren’t. I was then told to wait four to six weeks. It’s been three months and until my search history is cleared I can’t apply to another bank. RD, London
When a potential lender examines a credit record it is listed as a hard search on the report. This allows other lenders to see when you applied for credit. Multiple rejected applications will deplete your credit score.
Halifax’s incompetence will have prevented you from applying for a loan, credit card and mobile contract. It took a further two weeks after I contacted it for your credit file to be cleansed.
“We have apologised and offered a gesture of goodwill,” says a Halifax spokesperson.
Anyone in this situation can save time by contacting the three credit reference agencies directly. Such disputes are usually resolved between the bank and the agency in 14 days. Also, you can add a note to your credit report disputing an entry, which will be visible to potential lenders.
If you need help email Anna Tims at your.problems@observer.co.uk or write to Your Problems, The Observer, Kings Place, 90 York Way, London N1 9GU. Include an address and phone number.
