Unhappy with Virgin 0%...beware beware

jasont2370

I am new to this site and would like to leave some negative feedback regarding my application for a Virgin 0% credit card. I was recently refused a credit card by this company on the grounds that my credit score was not good enough. This I know is untrue as the day after my application I checked with Experian (as advised by this website and Virgin themselves). I paid for a full credit report as I wanted to see where my bad credit history came from.

To my surprised when my report arrived, it stated that I had a credit score of 999 out of 1000 and that 71% of people had a lower score, It said that I could not get a better score. (Virgin suggested that I check with Experian as this was where they got their information from). This to me suggests that it was not my credit score at fault but Virgins own policies/agenda.

Please beware of Virgin, If they refuse you for no reason it will still show on your Credit Score.:mad:

milliemonster

Jason, credit scores are a waste of money as every lender has their own individual scoring system anyway, whats more important is what is listed on your credit file, are you on the electoral roll? have you missed any payments? are you using lots of credit?, are you a homeowner? all these are things lenders look at rather than a score provided by the credit agency

Clariman

Millie is correct Jason. In the UK, all lenders do their own credit scoring of you. The Experian Credit Score is just Experian's "opinion" of how a lender might credit score you - no more than that. To be honest, I think that Experian sail pretty close to the wind because they happily let their consumers assume otherwise (IMHO) i..e assume that it is more meaningful than it actually is.

There is a lot of useful stuff around that explains credit scoring in some detail, but make sure you get it from a UK source because it differs in the US.

Clariman

benf90

As milliemonster has pointed out, the 'credit score' which Virgin refer to is their own credit scoring system, not Experian's.

They will gather the information from Experian but they will do their own calculations, the score given to you by Experian is just a money making scheme and utterly pointless.

It's advisable to check your credit report every so often anyway to make sure there's no errors. If you do decide to order it again in the future I'd recommend you opt for the statutory report which costs £2.

The article on here about 'credit ratings' offers a potential reason why you may have been declined. You can read it in full here:

http://www.moneysavingexpert.com/banking/credit-rating-credit-score

The following two segments are particularly relevant I feel:

• "Applications are aggregated into millions, and banks prefer to deny a few good quality applicants rather than overspend on personalised vetting procedures or accepting large numbers of unprofitable customers."
• "Even good risks can be rejected simply because they won't make the bank money!"

sarahs999

What the others said. Sorry you're feeling angry with Virgin but all CC companies are a law unto themselves. These are straitened times and some companies are suddenly being a lot more strict - maybe they'd filled their allocation of money for that particular card. Still, well done on having a good credit report. You should do fine with another card.

Moggles_2

jasont2370 wrote: »

Please beware of Virgin. If they refuse you for no reason it will still show on your credit score.:mad:

The credit reference agencies do not record credit card refusals, only credit card checks. These drop off your file after 12 months.

Too many cc checks in a short space of time may put off other lenders, but the single search made by Virgin will not affect your credit score. There's no harm done

jasont2370

Thanks for all the advice. Looks like I was refused because of my lack of credit history as I have always paid my bills on time (never late) and have an excellent credit score. I think not having tons of credit may be playing a part in Virgins decision as this means no profit for them...I was offered a card at an extremely high interest rate..

Moggles_2

jasont2370 wrote: »

Looks like I was refused because of my lack of credit history as I have always paid my bills on time (never late) and have an excellent credit score. I think not having tons of credit may be playing a part in Virgin's decision ...

That's more than likely. Bear in mind that potential lenders cannot assess the way you handle credit directly. The best indication they have is the payment history and credit limits on your existing accounts with other lenders.

If this would be your first credit card, you have a limited credit history, so from the lender's perspective you're something of an unknown quantity. You probably need to be more concerned about actually getting a credit card, rather than trying to select the best 0% card on the market. Lenders launch these 0% promotions, which are sometimes heavily advertised, to draw in new customers. Often they are flooded with applications and can afford to cherry-pick applicants.

Presumably you have a bank account and you're registered on the electoral roll. If you don't want the card you were offered, your own bank may be the best place to start. That said, any credit card (including the Virgin deal) will help you to build a credit history

Very best
M

loveandlight

There is no one reason. Lenders apply all sorts of criteria and every one of them view risk differently.

I have a 30 year blemish free credit file, have the highest internal rating you can get with three different banks and have even been told by all 3 credit agencies that my credit files are one of the best they have seen. However Amex pulled all my credit limit today and Co-Op did the same three months ago. Virgin also refused me a credit card as well about 3 months ago. My credit file continues to be blemish free.

Their lending criteria is changing on a daily basis and I think they have lost their way generally and are no longer able to differentiate between those who are high risk and those who aren't. Just apply to a different lender if you really need a card.

YorkshireBoy

loveandlight wrote: »

I have a 30 year blemish free credit file...

I only have 6 years history on my credit file. How have you managed to get 30 years?

CAIS was only available from 1982, according to Experian's history, and a great many UK lenders didn't start sharing positive (white) data until 1998...

http://www.experian.co.uk/www/pages/about_us/company_history/index.html

loveandlight

I am talking about the whole of my working years YorkshireBoy. I have been with the same banks for that length of time and I know I have a 30 year clean credit file because I am the one who has been protecting it all this time as I am sure others will say the same who have also made sure they have always paid whatever money they owe and have never defaulted.

I also know this because I have also always checked up on my credit files as years ago there was a social stigma to borrowing money and you had to make sure your credit files were squeaky clean as getting a mortgage was like winning the lottery and admitting that you had a credit card was like confessing you had a criminal record.

I think you do know what I mean YorkshireBoy, you are just trying to play around with my words. My point about this post was to show people that even having an impeccable credit file is no guarantee you will get credit and you are still at risk of having your credit pulled at a moment's notice.