Excellent credit rating but Morgan Stanley refused me

EagerLearner

After reading posts here and Martin's book, I piped up for a new credit card with Morgan Stanley as I liked the fact I'd get cashback. I have been with First Direct credit card for a while (switching between their gold/normal card once) and before I applied for the MS one I checked my credit rating with Experian and it was 999/1000, so all seemed good (no-one gets 1000 by the way, I asked!).

However, as you have guessed, Morgan Stanley refused my application and I was dumbfounded - I earn a good salary, spend on the FD card responsibly and pay off the amounts within 2-3 months of buying an item if not sooner. I have been at my current address for 2 years and never had bad debt, late payments etc.

I called them and they said it was because they use Experian, but the other companies I have history with use Equifax, therefore they couldn't access info on my history and this was a major factor in declining my application.

Now, call me a cynic, but why are their admin systems my problem...? :mad:

I have written off to get my file from Equifax, but it seems that that wouldn't have solved the problem anyway.

Any suggestions for a good cashback credit card that should accept the following factors:

- Have been renting at my address for 2 years
- Switched jobs recently but have been in job for 5 weeks
- Good salary
- No bad payment history or ccj's

PLUS - Nationwide have approved us for a mortgage, why can't I get a simple credit card...

My OH reckons I'm not in enough debt for Morgan Stanley to consider me a valuable customer - Experian said this was a possibility too.

Any comments much appreciated.

EagerLearner

The_Boss

Being in job for 5 weeks is a big nono - lenders will be cynical for until you have been there at least 6 months, i.e. when you are clearly out of a probationary period. Otherwise you could easily be sacked and not be able to make repayments.

Experian's score wont take this into account, just your history.

The_Boss

Also, when did you get your current credit card, and what is the credit limit?

EagerLearner

Hi TheBoss - thanks for your comments - that may well be a big reason then. Shame, as many people change jobs for better jobs (like I have) and get penalised. My current credit card has been with me for around 3 years and limit is £3,800. I also had a credit card with Marbles until recently, believe the limit was £3,000 on that one - canceled it to tie up loose ends as never used it.

Is it worth me applying for the Egg card yet or leave it 6 months? The thing is, by early June we will be moving to our new (mortgaged) flat, so wouldn't my credit rating me even worse then? Thought it was best to apply for things before a big life change... but I guess upgrading my job has sort of scuppered things ;o(

EagerLearner

The_Boss

I'd say wait till just a month or two after you move in. Mortgage tend to improve credit scores as it shows stability and you own your own property. And also you will have been in your job a lot longer.

If you really want another card, I'd suggest applying for a Barclaycard about 6 weeks before you are due to move, rather than Egg. Purely because they will do a credit search on Equifax.

Backbiter

They refused me a few years ago - only time I've ever been refused credit. It still bugs me to this day, but I've never found out why.

EagerLearner

Hi TheBoss - I will wait as not desperate for a card, just wanted to try cashback as have a few big purchases coming up... oh, well!

Backbiter - I know how you feel! It's my first rejection too... I'm not the kind of gal that's used to that, so I guess it's a learning curve ;op

I'll wait for Egg in a few months - will be handy for Xmas purchases, hols etc

EagerLearner

The_Boss

Morgan Stanley were the second lender I applied to for a credit card after NatWest. None of the NatWest details showed on my credit report, so to all intents and purposes I had no credit history. They gave me the card back in 2001 and their service is not very good and they have repeatedly slashed the cashback. You´re not missing much. I only have mine open as its the longest history on my credit report.

EagerLearner

Thanks TheBoss - I feel better now, haven't missed out on anything! I read on another post that Barclaycard use only Experian for their reports? Given that I have 999/1000 on Experian, are there any other lenders (with good deals) that just use Experian?

I'd still like to apply before I move into our new flat as I know Martin's advice is to apply before a big life change...

Thanks

EagerLearner

The_Boss

EagerLearner wrote:

Thanks TheBoss - I feel better now, haven't missed out on anything! I read on another post that Barclaycard use only Experian for their reports? Given that I have 999/1000 on Experian, are there any other lenders (with good deals) that just use Experian?

I'd still like to apply before I move into our new flat as I know Martin's advice is to apply before a big life change...

Thanks

EagerLearner

You will probably have the same problem with the length of employment if you try it now. I can only confirm Barclaycard use Equifax as I've had two cards with them and both times it was an Equifax search only.

EagerLearner

I can only say that Karma visits at the right time - I've had a particularly bad last few days, but my Experian report dropped through the door Friday and on close examination, it seems I opened an Egg card a few years ago, cut up the card, but never closed the account! I know we are all guilty of this, but I am grateful, as within a few weeks it means I'll have an Egg card at no effort... and 0% APR as I never used it!

Morgan Stanley lost this customer ;o)

EagerLearner