Refused for credit card... why?! :(

bc3000

Hi-

Just applied for a credit card for cashback on wepromiseto, but they rejected me, and now I'm worried I have a bad credit rating!

I'm pretty sure I'm on the electoral roll, have no debts, and have never had debts- I'm only 18 and so I've never had late payments or anything. I'm paying for internet through Virgin who I'm pretty sure do a credit check and they've given me a £60 limit on my account. Also, I did a free trial on creditexpert.com (or .co.uk?) and didn't see anything on there that seemed worrying because as I said before, I haven't got debts etc..

Any reason I should be worried about the rejection?

sutton111

Most probably limited credit history. Have you tried your own bank for a credit card if not try Capital one or Aqua they may have a lower limit but they are good credit builders. Try getting a mobile telephone as well that will also increase your credit worthness.

jt-t

sutton111 wrote: »

Try getting a mobile telephone as well that will also increase your credit worthness.

No it wont unfortunately. When applying for a credit card the only things that are taken into account from your credit report are things such as other credit cards, loans, mortgages etc.

moneysavingallday

jt-t wrote: »

When applying for a credit card the only things that are taken into account from your credit report are things such as other credit cards, loans, mortgages etc.

Didn't know that. So when people have loads of green 00000s from mobile phones, bank current accounts and catalogue accounts, credit card companies just ignore those?

sutton111

jt-t wrote: »

No it wont unfortunately. When applying for a credit card the only things that are taken into account from your credit report are things such as other credit cards, loans, mortgages etc.

So if these aren't taken into account why has my credit become better after i have had my contract telephone and why do they bother reporting to CRAs. personally i think you're writting rubbish.

moneysavingallday

sutton111 wrote: »

So if these aren't taken into account why has my credit become better after i have had my contract telephone and why do they bother reporting to CRAs. personally i think you're writting rubbish.

Yeah. As you know I've got approved for 2 good cards in the past week and all I have on my CRAs is a mobile phone and a current account or two.

bethanyrayne

bc3000 wrote: »

Hi-

Just applied for a credit card for cashback on wepromiseto, but they rejected me, and now I'm worried I have a bad credit rating!

I'm pretty sure I'm on the electoral roll, have no debts, and have never had debts- I'm only 18 and so I've never had late payments or anything. I'm paying for internet through Virgin who I'm pretty sure do a credit check and they've given me a £60 limit on my account. Also, I did a free trial on creditexpert.com (or .co.uk?) and didn't see anything on there that seemed worrying because as I said before, I haven't got debts etc..

Any reason I should be worried about the rejection?

You said it yourself Limited Credit History and your only 18. The best deals require a very good history, this is not the same as having no debt because you also have no history.

Swans1912

my partner is 22, has a good credit rating and we have a mortgage and we have 2 cars on finance, she still gets rejected for cards sometimes! Credit card companies just seem to be tightening their belts in the current climate.

normanmark

jt-t wrote: »

No it wont unfortunately. When applying for a credit card the only things that are taken into account from your credit report are things such as other credit cards, loans, mortgages etc.

You're wrong there. Mobile telephone contracts appear on your credit file & are taking into account when applying for any form of credit.

GIOL_Elmo

normanmark wrote: »

You're wrong there. Mobile telephone contracts appear on your credit file & are taking into account when applying for any form of credit.

You are kind of right and kind of wrong, I have worked in credit card risk and they are not taken directly into account but they will have a beneficial effect on your behavioural score are the CRA. If you have defaults on them they will be noted but you have a large number of things working against you namely:

Age - lower is higher risk
employment - dont know what you do but you aint been doing it long
home status - you might own your house but chances are you rent or live at home with parents

etc etc. Basically at the end of the day you are not going to get a 15 month 0% offer you just wont pass the cut off. As advised above get a cap one card and spend a little and pay it off etc as this will give you some better history.