Credit card application advice please?

mattdrummer

Hi all,

I've just applied for a card online and got rejected and am struggling to figure out how best to proceed from here. I've read Martin's :money:article on the subject several times and have looked at my credit file online but can't see what the problem is.

The card I applied for was the Virgin one recommended on the 0% balance transfer page. I'm on the electoral register (since Jan/Feb ish), have been in my current rented property since Nov 08, have not had much income from that point until recently (have been freelancing on and off) but started a new permanent job this month paying £29k. Before Nov 08 I was out of the country for six months in Africa. I have one credit card with £1200 on it (limit £1500), and an overdraft near its limit at around £1500. I've been with the same bank for about 15 years. I've no outstanding debts with any mobile phone companies (all are listed as closed) and as far as I can remember I pay off my credit card min payment without penalty, and have always done (used to clear the balance completely each month until the last 6 months). I had a couple of checks on my file towards the end of last year - for mobile phone contracts - both were rejected.

I can see how some of these things may well not work in my favour, but it's hard to pinpoint exactly what the problem is. Should I try another similar card again once a few more pay cheques have come through? Or do I have to accept that these top level deals are inaccessible to me despite the fact that I have a good income?

Any advice on these applications would be great. I'm normally pretty on top of my finances and have a good grasp of all the basics so general advice on managing finances not really needed, but any extra info on credit cards - the info they use for applications, tips on improving chances of success, etc., would be great.

Cheers, and happy St George's day :beer:

Matt

powned

its just really hard getting credit at the moment, egg offered me a laon at 24% apr which was just way too much, i have a very good credit rating too... you should really check your credit report tho

tripled

powned wrote: »

its just really hard getting credit at the moment, egg offered me a laon at 24% apr which was just way too much, i have a very good credit rating too... you should really check your credit report tho

Perhaps they should click the link in your signature, hmmm?

Reported to abuse team.

mattdrummer

I have checked my credit report but I can't identify what the problem is. I'm trying to figure out what I can do to improve things, but it's hard to do without knowing what's causing the setbacks.

Incidentally, I read a really good sample letter on appealing credit card rejections recently, it's somewhere on this forum but I can't find it. If anyone knows where it is, feel free to enlighten me.

Thanks, and enjoy the Bank Holiday weekend!

Matt

never-in-doubt

mattdrummer wrote: »

I have checked my credit report but I can't identify what the problem is. I'm trying to figure out what I can do to improve things, but it's hard to do without knowing what's causing the setbacks.

Incidentally, I read a really good sample letter on appealing credit card rejections recently, it's somewhere on this forum but I can't find it. If anyone knows where it is, feel free to enlighten me.

Thanks, and enjoy the Bank Holiday weekend!

Matt

Here is a letter to appeal.... http://forums.moneysavingexpert.com/showthread.html?t=1612333

Regards to the reason you got declined, Virgin is a hard card to get and with limited address history this could be why. Was it due to failing their credit score by any chance....?

tracy24582_2

hi matt
to be honest i think that some people fail to acknowledge is that it is always a problem if you have been at your address for less than a year, most credit lenders like to see that you have lived at property for at least 2-3 years as it shows you are stable and wont just move and leave the credit card debt at your old address. also the fact that you haven't been in your job for very long will also be a problem, however that is not acknowledged as well, as you could have this job for the next 5-10 years or the next 5-10 months as you income hasn't been established yet as regular through your bank statements credit lenders just aren't sure and would see you as a risk
i hope this helps you understand a little why they may have rejected you as i had your same problem when i had only been at my address for 6 months and in my job for 7 months i was rejected quite a lot, and the only lender that gave me one was through my bank and then got accepted for a couple others after that.

debtdestroyer007

does it make a difference though if you ar not showing at the address on the voters roll for long.
for eg: i have lived at my address for 4 years and 2 months but i only registered to vote 18 months ago.....

what do they take into account?

---

time showing on the voters roll or no.of years put on the application?

never-in-doubt

debtdestroyer007 wrote: »

does it make a difference though if you ar not showing at the address on the voters roll for long.
for eg: i have lived at my address for 4 years and 2 months but i only registered to vote 18 months ago.....

what do they take into account?

---

time showing on the voters roll or no.of years put on the application?

a bit of both mate, say like me where i've lived here 3yrs in August, I never went on e/r for first 18mth so on my credit file it shows registered from 09/08 which was my own fault, kinda.

So that does have an impact as it raises question to your integrity, i.e. if you lived there 3yrs why only 1yr showing on e/r? They don't grasp the fact that you may have missed the cut off or just don't want to go on the register - whatever, it is best to have 3yrs e/r history to be classed as fully stable and pass the address element of credit scoring which is by all accounts the biggie.....

As i've got an incorrect linked address linked to me, this gap is what is causing me problems cos I cannot prove my previous address due to deliberately not registering so it's kinda cost me and doubts me cos there is a gap!

debtdestroyer007

i get it now........ thats why just to ease applications for credit facilitites, i always apply for a savings account.

that way u r an existing client with the bank...... and i suppose when applying for a credit account, theres less checks etc

works for me!!!;)

Moggles_2

debtdestroyer007 wrote: »

Does it make a difference though if you are not showing at the address on the voters roll for long? For eg: i have lived at my address for 4 years and 2 months but i only registered to vote 18 months ago. What do they take into account, time showing on the voters roll or no.of years put on the application?

It's the time shown on the electoral roll that counts.
Only data that can be independently corroborated is used for credit scoring purposes.

More importantly, because of the numbers of applications received, some lenders routinely reject applicants whose ID and address cannot be verified electronically via the CRAs, which in turn collate data from public records such as the electoral register.

That's why it pays to get on the electoral roll as soon as you possibly can

Moggles_2

debtdestroyer007 wrote: »

That's why just to ease applications for credit facilitites, i always apply for a savings account. That way you are an existing client with the bank and i suppose when applying for a credit account, there's less checks etc.

There's no evidence that opening a savings account, prior to an application for credit, results in fewer checks.

If this were so, the fraudsters would all be at it.