Rejected Sainsbury Credit card although I have relatively higher credit score

itlondon · 19 March 2017 at 8:56PM

Hello, could you someone to give me advice?
(I'm not an English native speaker, so I'm sorry for my bad writing. )

I live in the UK for 10 years (Work permit -> Indefinite to leave to remain).
I bought a flat Oct in 2015 and I have been paying the mortgage.

I think I did overdraft (accidentally) twice since I came to London. I don't exactly remember, but the latest one was around 2014.

In 2012, I applied a credit card, but it was rejected. My bank is Barclays, and they applied it to me, but it was failed.

In Oct 2016 (1 year after paying my mortgage), I applied Sainsbury credit card, but again I couldn't get it. I was using Clear Score, and it seemed I had a good credit score, but I couldn't.

Recently, I signed up the Experian (free account). My Experian Credit Score was 990 which I think it's quite good.

My questions are;
1. Why I couldn't get credit card from Sainsbury although I had good credit score? Is still over draft affecting?

2. Experia site recommends some credit card for me. It's safe to apply one of them? Or, are there possibility I get rejected again?

3. My friend told me I should change the bank account and apply for a credit card. However, I need to remortgage coming Nov. If I switch my bank, it may affect my remortgage?

Kindest regards

[Deleted User] · 19 March 2017 at 9:08PM

You must remember that your "credit score"means nothing at all, lenders don't even see it.
Why you were rejected we can't tell.

SnowTiger · 19 March 2017 at 9:22PM

itlondon wrote: »

My questions are;
1. Why I couldn't get credit card from Sainsbury although I had good credit score? Is still over draft affecting?

2. Experia site recommends some credit card for me. It's safe to apply one of them? Or, are there possibility I get rejected again?

3. My friend told me I should change the bank account and apply for a credit card. However, I need to remortgage coming Nov. If I switch my bank, it may affect my remortgage?

Kindest regards

Hmmm, Clear Score and Experian who hold limited information about you and don't lend money think you're an excellent credit risk.

Barclay(card) and Sainsburys who have more information about you and do lend money have a different opinion.

Credit application forms ask for things such as income and job details. These are things that CRA (probably) don't know about.

These forums are full of folk who have been told by the CRAs they're an excellent credit risk, but have been rejected by lenders who hold the purse strings.

There's no guarantee you'll get a credit card from one of the providers proffered by Experian. You'll still be credit checked and, as you now know, Experian's opinion may not be very important to them.

As for changing bank: it's probably best to keep your old account active to demonstrate stability. But you could open a new one elsewhere.

bigadaj · 19 March 2017 at 11:37PM

As your main bank has turned you done then it may be worth you applying for a credit builder card from companies like Aqua or vanquis. These are easier to get but charge very high interest rates, however if you pay everything each month you incur no charges and the interest rate doesn't matter. Once you have such a card for several months to a year you may well be able to apply for a more mainstream card.

You need to slowly build your credit file, having a mortgage and not moving are good things, as well as having a mobile phone contract and sometimes the utilities report to your credit file.

Ben8282 · 20 March 2017 at 4:19AM

If you have held your main current account with Barclays since at least 2012 and this account receives your income, it is curious that they won't give you any sort of credit card whatsoever, even the Barclaycard initial. This really does raise questions as to how the account is being conducted.
To answer your questions:
1. The Sainsburys credit cards are pretty good products. Rewards (Nectar points) and good promotional periods. As such, a person with no credit card history whatsoever is unlikely to be considered suitable, whatever their credit score is. The credit score will be a general indication of how you have managed your accounts but meaningless as a guide to eligibility for specific products.
2. You will probably stand a better chance of being accepted for the products recommended but yes, you can still be rejected. If you let us know what cards are being recommended that would help a lot.
3. Changing the bank account should not affect a new mortgage as such, although I do wonder how an established Barclays current account customer who is unable to get even a Barclaycard Initial credit card ever got a mortgage in the first place. Is your mortgage being correctly reported to the CRA's?

itlondon · 20 March 2017 at 10:02PM

Thank you very much for all replies!
I have little idea about credit card, so all replies are very helpful.

The credit cards are recommended by Experian are;
- Chrome Credit Card 24.7%
- Aqua Classic Card 27.4%
... then continues higher APR.

I assume Higher APR indicates I have lower Credit Score?!?!

[Deleted User] · 20 March 2017 at 10:12PM

It indicates you're viewed as higher risk.

DCFC79 · 20 March 2017 at 10:40PM

itlondon wrote: »

Thank you very much for all replies!
I have little idea about credit card, so all replies are very helpful.

The credit cards are recommended by Experian are;
- Chrome Credit Card 24.7%
- Aqua Classic Card 27.4%
... then continues higher APR.

I assume Higher APR indicates I have lower Credit Score?!?!

Not linked to your score.

You mention your overdraft, do you mean you went overdrawn ?

That could be whats led to the suggested credit cards.

Pay everything by direct debit if not already doing so, well I presume you are.

Shakin_Steve · 20 March 2017 at 10:42PM

itlondon wrote: »

Thank you very much for all replies!
I have little idea about credit card, so all replies are very helpful.

The credit cards are recommended by Experian are;
- Chrome Credit Card 24.7%
- Aqua Classic Card 27.4%
... then continues higher APR.

I assume Higher APR indicates I have lower Credit Score?!?!

Higher APR indicates that lenders see you as a higher risk. But, as has been said on here a thousand times, the APR does not matter as long as you settle in full each month. My advice would be to go for one of these cards and pay it off each month. Your credit history will improve over time.
One more thing: having a mortgage does not mean you are a good risk. Lenders take into account how much you earn versus how much you pay out each month. So, if your mortgage payments are high in relation to your salary, it can even be a negative.

john2054 · 26 March 2017 at 4:58AM

Stick with Barclays as your bank. They are a top bank, and you will appreciate this one day. I would also, as some others have suggested, recommend opening a basic credit building card, such as with marbles or capital one. They were two of my first cards. Keep them active for a year or so, without making any further credit applications, and they you can try for barclaycard again at that point!

bazzyb · 26 March 2017 at 8:48AM

The credit reference agencies won't see all the other information that you are putting on your credit card application - such as your employment status, employment history, current income and anything else the lender is asking about (such as your outgoings).

The lender will look at far more than just your credit history when making a decision.

Rejected Sainsbury Credit card although I have relatively higher credit score

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