Credit card rejection

Sophie4120

Hi,

New to the forum!

I'm just a bit confused - I just applied for a Tesco credit card but was rejected! I have no idea why though... I always pay my credit card on time. Or could this be the problem?!

I have been using a credit card for about 5 years now so I could build up a good credit rating for when the time comes to get a mortgage etc. But it seems that I can't even get a credit card now! Should I be worried?

Moggles_2

Welcome to MSE!

I always pay my credit card on time or could this be the problem?

Is that a serious question? Nothing wrecks a credit rating quicker than late payments

There are any number of reasons why someone's credit history may be less than perfect. Presumably, you have a bank account, a regular income and you're on the electoral roll at your current address. Have you looked at your credit files lately to see what's on there? (For help, see page 1 of the *How to obtain credit reports* sticky.) It would be helpful to know whether Tesco searched your file.

For tips to improve your chances of credit card acceptance, 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*;)

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

Sophie4120

Moggles wrote: »

Welcome to MSE!

Is that a serious question? Nothing wrecks a credit rating quicker than late payments

It was meant as a bit tongue-in-cheek - i.e. someone who pays their debt off in full every month will never make them any money

Thanks, I will see if I can access my credit score. Though you may be onto something with the electoral roll thing, as I don't think i'm on it at my current address (i've only been here a few months). I hadn't considered that as a factor! Thanks again!

Moggles_2

Sophie4120 wrote: »

It was meant as a bit tongue-in-cheek - i.e. someone who pays their debt off in full every month will never make them any money.

Gotcha.

FWIW, Tesco wouldn't know that you've always settled your monthly bills in full, only that you were on time. (Of course if you paid late for 2 or 3 months, other lenders would soon find out about it.)

That said, things are set to change. From Dec 2008, five providers (Barclaycard, Capital One, GE Money, HBOS and MBNA) agreed to start sharing data of this sort.

I will see if I can access my credit score.

Credit scores are pretty meaningless, tbh. Your best move would be to order a credit report from Experian and/or Equifax (For links, see page 1 of the *How to obtain credit reports* sticky.) Once you know what lenders would actually see, you are in a better position to improve their opinion

Moggles_2

Sophie4120 wrote: »

You may be onto something with the electoral roll thing, as I don't think i'm on it at my current address (i've only been here a few months). I hadn't considered that as a factor!

In that case, I'd make registering your details on the ER your No.1 priority and wait for this to show on credit files before submitting a further cc application.

Getting this right obviates the need to produce ID every time you apply for so much as an internet savings account. More importantly, because of the sheer volume of applications received, some lenders routinely reject applicants whose ID cannot be verified electronically via the CRAs, which in turn collate data from public records.

The move would have temporarily disrupted your credit rating, unfortunately. Basically, lenders like stability, so best practice when building a credit history is to apply for credit facilities, where possible, before you move/change jobs/change banks. Being with the same employer, bank and current address for a while, all help when applying for credit

belle60

Anybody here been pre-approved for a credit card, then a week or so get a letter declining them, this is Santander Zero Cards, cheers in advance

Moggles_2

belle60 wrote: »

Anybody here been pre-approved for a credit card, then a week or so get a letter declining them? This is Santander Zero Cards, cheers in advance

Bad luck, but thanks for posting.

I think you'll find this is common to all credit card providers. From feedback here, customers' hopes are raised time and again by so-called "pre-approved" cc offers, only to be dashed when the computer says no.

Presumably, the banks get away with it on the grounds that "pre-approved" doesn't mean the same as approved :rolleyes:

belle60

Hi yes! thinking about it your right, mind you it's also a good way for staff at the bank to get a bonus for signing someone up especially just before Christmas:mad:, thanks again H.

ladypinkof66

Sophie4120 wrote: »

Hi,

New to the forum!

I'm just a bit confused - I just applied for a Tesco credit card but was rejected! I have no idea why though... I always pay my credit card on time. Or could this be the problem?!

I have been using a credit card for about 5 years now so I could build up a good credit rating for when the time comes to get a mortgage etc. But it seems that I can't even get a credit card now! Should I be worried?

I was the same i was refused by Tesco yet had good credit or so i thought i tried with sainsburys bank instead and was instantly accepted