Declined for M&S card - could store cards be the reason?

catwoman24

Hello, first post on the forum. I've had a glance through past threads but can't find anything similar. Any thoughts/advice would be appreciated.

I am going on holiday next month. I've never had a credit card before, but I want one for big purchases/emergencies. HSBC frequently offer me a pre-authorised card (3 months interest free on purchases), but I wanted something with a longer interest free period, so applied for the M&S card. I presumed I would be accepted as they are part of HSBC, but was declined. This is the first time I've ever been declined for credit, and I can only think of one reason.

I have a couple of store cards, with a small amount on each (less than £300 in total), but a couple of times in the past I have been a day late making a payment on my Topshop card, usually because it takes 5 days to be registered to the account when you do it instore. Other than this, my credit history is whiter than white. I have a small personal loan with HSBC (used to pay off student overdraft after it stopped being interest-free) which is paid by direct debit, and i've never missed a payment on any utility bills or mobile phone. I'm always accepted for store cards, and have bought things on higher purchase in the past without a problem. Furthermore, I earn a decent wage in a secure job. Could it really be that the store cards are why I was declined?

I had a look on the Money Supermarket smart search, which suggests I would be accepted for the Virgin card (6 months interest free), but I'm concerned that a further rejection will seriously damage my credit. Is it worthwhile applying, or should I cut my losses and just go for the HSBC card?

Cheers, Lucy

chuckley

maybe they thought they wouldnt make money off u?!

it could be a number of reasons. ur declined 1 place and accepted another. each place has their own criteria. good-excellent credit score doesnt mean acceptance everywhere.

stick with the hsbc as its pre-approved.

Moggles_2

I have a couple of store cards, with a small amount on each (less than £300 in total), but a couple of times in the past I have been a day late making a payment on my Topshop card ...

Missed payments can wreck your credit rating for years, but a late payment or two will not affect your credit score for very long. It's your payment history with all your creditors over the last 6 years that counts, with particular emphasis on the most recent 12 months.

That said, there are any number of reasons why a given lender may refuse to extend credit. For tips to improve your chances of credit card acceptance, I would have a look at the *Credit Rating: how it works and how to improve it guide* especially Martin's *Manage and Improve your credit score* article before you apply for another credit card

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

Moggles_2

I had a look on the Money Supermarket smart search, which suggests I would be accepted for the Virgin card (6 months interest free) ...

Caution: this is a profit-driven service that lists some, but not all credit cards, due to its commercial relationships.

I'm sceptical about it's value, tbh. If memory serves, it doesn't even ask users for their annual income. Don't forget they're on lead commission. It's very much in their interest to persuade users to apply for credit cards.

That said, Virgin is not known to score particularly harshly.

Very best
M

kindofagilr

Just a thought, crazy I know, but some people get refused credit cos they dont have enough already? and therefore lenders dont know what kind of payer you are?

Stupid though isnt it

I dont know if that would refer to you though cos you have got some credit.

catwoman24

Thanks for the input everyone. I was rather miffed yesterday due to the decline, but I think I'll go for the HSBC card, then try to transfer my balance elsewhere if I've not paid it off after the 3 months.

Moggles_2

Please be aware that HSBC and M&S belong to the same stable, so they may score applications in much the same way.

Please keep us posted.

Very best
M

Rolandtheroadie

Was going to start a thread but seen this and thought I'd just add it on.
I've just been refused an M&S card too.
I've never defaulted or missed a payment on ANYTHING whatsoever. They emailed me to say I was being refused and said the reason would follow by post.
The reason? They said my income couldnt support my (avaliable) credit.

I probably have around 5 or 6 active credit cards (from the rate tart days) and if I still had all the cards, I could abscond with about 45k but I only owe £200 in total on 1 card.

I wanted the card to put a car on it so I could pay it off quicker than if it was on finance or a loan and with 10 months interest free.

So now there will be a credit knockback on my experian report (they kindly supplied a form).

Solution? Went to the halifax, 9 months 0%, 10k limit

catwoman24

So, I checked my credit report, and as I thought, clean as a whistle. On the back of that I decided to apply for the Virgin card, and was accepted with a decent credit limit. Seems that M&S are just not interested in people with a good credit history!

Moggles_2

catwoman24 wrote: »

I checked my credit report and, as I thought, clean as a whistle. On the back of that I decided to apply for the Virgin card and was accepted with a decent credit limit.

Congratulations & thanks for your feedback
:beer:

pb3

scotsman4th wrote: »

Was going to start a thread but seen this and thought I'd just add it on.
I've just been refused an M&S card too.
I've never defaulted or missed a payment on ANYTHING whatsoever. They emailed me to say I was being refused and said the reason would follow by post.
The reason? They said my income couldnt support my (avaliable) credit.

*Shrug* At least they gave you a reason. This is the first CC company I've heard of that does so!

It is important not to take these things personally. CC issuers differ widely in their criteria for extending credit. They probably have a supercomputer in their DataCentre that spits out a yay or nay based on the input variables which include your credit history, income, address and inside leg measurement

For some reason Tesco believe I'm unworthy of their credit card. I still shop at Tesco though

And yes - my so called "credit rating" according to the usual suspects is up there at the top. Not that I believe this makes a jot of a difference at the end of the day.