Credit Card declined, what next?

ISAmad

Hi MSE,

I've just had a second credit card application turned-down (first decline 6 months ago).

Santander just said 'we use a number of sources to get an understanding of your current financial situation'. They said I didn't meet their minimum requirements. They've also offered me the chance to appeal within 30 days. No mention of what these requirements are!

I'm starting to be concerned because I never have debt or miss re-paying anything.

I'm not sure where to start here. Should I appeal and ask for precise reasons behind the decision? Should I ask exactly which agency has credit scored me?

I would really appreciate some advice

YorkshireBoy

ISAmad wrote: »

They've also offered me the chance to appeal within 30 days. No mention of what these requirements are!

You tell them something they don't already know (from the credit search and your application data), such as your savings and investment portfolio, house equity, second income stream, BTL property, general financial good standing, etc.

I'm not sure where to start here.

Start by spending £4 on two statutory credit reports from Experian & Equifax to see what the people who are declining you see.

Should I appeal and ask for precise reasons behind the decision?

They won't tell you, nor do they have to. They may allude to your existing indebtedness (if any), but that's as close as you'll get.

Should I ask exactly which agency has credit scored me?

You've not been scored by an agency. The lender has obtained raw data from an agency and applied their own scoring model.

kadiea

It sounds to me like you have never had a credit card?

If this is the case then you should probably go for a 'sub prime' (i think they call it) credit card such as capital one or aqua but from what ive heard I wouldn't go near vanquis.

I think you have been declined for a mainstream credit card then its probably because you haven't got enough credit history with loans or cards in the past

All i can do is wish you good luck, but deffinatley appeal the credit card application with santander cards.

Here is the link http://forums.moneysavingexpert.com/showthread.html?t=1612333

YorkshireBoy

What about applying for a card from your current account providers? After all, no-one knows more about your financial circumstances than they do!

kilasuit

kadiea wrote: »

but from what ive heard I wouldn't go near vanquis.

And what is it you've heard about vanquis?

i find them brill and defo worth considering if have little or no credit history

Brian1966

Snap..
Vanquis do exactly what it says on the tin..rebuilds and improves credit score.
Interest may be higher than Cap one or Aqua but far better credit limits and /or increases.
With Cap one many people start at £100 -£200 then if managed well get an increase to £200-£400.
Vanquis start between £250-£500 and increase REGULARLY.
I love them

Neyo

Vanquis are fantastic they give us all a second chance and for that I am most grateful

It's annoying when people keeping banging on about there high apr............all you do is pay the full balance each month therefore you pay no interest.....it's that simple yet people just don't get it.

Brian1966

Neyo wrote: »

Vanquis are fantastic they give us all a second chance and for that I am most grateful

It's annoying when people keeping banging on about there high apr............all you do is pay the full balance each month therefore you pay no interest.....it's that simple yet people just don't get it.

Couldn't agree more...I have a mainstream card now from Natwest but still use Vanquis regularly as they gave me that second chance.
Nice people to deal with too, friendly call centres if you wish to speak to a human voice, good automated service if you don't.
Brilliant :T

ISAmad

Thanks everyone!

I certainly do a have a CC and have always paid it off in full. This is why I'm baffled.

However, from reading Martin's article on this, I gather that two things may adversely effect my credit rating:

1) Having joint finances with my wife (even though she has no debt)
2) Living in rented accommodation.

Seems bloody bonkers to me! We both have steady full-time incomes with a decent disposable income. We always play by the rules and borrow sensibly (ie, pay off CC in full each month by Direct Debit).

You might now be wondering why we want another CC - FYI, it's because we spend a fair amount of money in foreign currencies and Martin has recommended this Santander CC as being the cheapest one for such transactions.

YorkshireBoy

ISAmad wrote: »

...I gather that two things may adversely effect my credit rating:

1) Having joint finances with my wife (even though she has no debt)
2) Living in rented accommodation.

1) Only if she has a poor credit rating herself. A lack of positive information shouldn't be too detrimental to your own applications.

2) Not necessarily; at least not to a large degree I wouldn't have thought. If you've been there a long time, or been at your last address a long time and only recently moved, then that shows some stability...especially if you were on the electoral roll at all addresses.

Good luck with the appeal (or with applications to Nationwide/Post Office if you choose that route instead).

Karl.H_2

YorkshireBoy wrote: »

Start by spending £4 on two statutory credit reports from Experian & Equifax...

It is £2.

By the sounds of other replies, it seems as though you have no credit history and you are very unlikely to get a good credit card. I recommend Capital One Classic Card :rolleyes: