Beware effect of virgin card on credit rating

daveandstella

:mad:Why can't I have a Virgin phone and a virgin credit card ?????
I recently took out a VIrgin credit card under the 0% for 16 months and am paying off the minimum amount each month. Great - BUT........
I applied for a measly £10 Virgin mobile phone contract and they turned me down saying I failed their credit rating. I already have 6 Virgin phones, one on a contract, one on PAYG direct debit and 4 on top-ups. I paid for my equifax and experian credit report and scored the highest score possible - I have never defaulted on a bill and only have a couple of credit cards. The report says the ONLY two things effectng me are :- 1) High balance on my Virgin card (£3k - is this high ????) and the fact that the stupid operator spelled my name wrong so it shows as an alias. I wrote to them and they replied saying they had reviewed it and would not give me a contract or discuss it further. So it would appear that having a virgin credit card has prevented me having a virgin phone - well done Virgin. Car Phone warehouse have now given me a contract so I am in the process of changing all my phones over to Vodafone - I will get 5 new phones and then have the pleaseure of writing to Virgin and telling them what they can do with their accounts.

Brodiebobs

I doubt its the card... 6 phones in your name has to have a negative effect... why so many?

daveandstella

A wife and 5 kids !! - My Experian report said that whilst I had the highest score possible, the only thing effecting it was a high outstanding balance on the card. However, you have a point - Virgin may wonder why I have 6 accounts, but surely as they are all paid up regularly, it is good business for them - and the new account contract was migrating from a PAYG - Any way you look at it, they have refused me business because I am already doing business with them ??!!??

Brodiebobs

whats the credit limit on the card, if your using more than 90% and only paying the minimum that might b a reason.

daveandstella

It's only about 50% - but on reflection I think your first response might have the answer. As Vodafone have now approved me, it suggests my credit rating isnt the problem and it is more likely info that Virgin hold (ie the number of accounts) - I wish theyd just told me that !!

izools

This is very odd I think. I was approved for a Virgin Mobile contract as an undischarged bankrupt... I think it must be to do with an internal policy regardling lines per customer rather than your score. Their internal policies make up part of their scoring process, so when you are told you've failed the score, doesn't mean it has anything to do with your credit file.

Having a credit card on your file does NOT have a negative unless:

1. You don't pay (duh)
2. It has a limit too large for your salary
3. It is always close to it's credit limit

But as I say, more likely to be an internal policy rather than anything to do with your Equifax file

EDIT: Vodafone may be able to sort you out a deal. A business tariff may be cheaper for you. This provides a "Pot" of minutes shared across several lines and only the "Main" account has a standard sort of line rental (say £40 PCM for 1100 mins & unlimited texts), then the four "child" accounts will have a reduced line rental. Just something to think about. Saves shedloads of separate accounts showing on your credit file, too

dominicaeaton

i have never had any problems with Virgin cards and their services. I have a credit card, the TV and broadband package and a mobile contract.

daveandstella

Thanks Izools - I think you are right. I have been accepted by Vodafone which suggests the problem isnt my credit rating - it is obviously to do with the number of lines I have. If only theyu hadn;t said 'You failed to reach our credit threshold' it would've been a lot easier to accept and I wouldn;t have been a pain in their !!! for the last five weeks moaning at them and asking for reviews of the decision. They did however spell my surname wrong on the application which is now shown as an alias on my credit report - but as I undertsand it they legally HAVE to remedy that.

izools

Yes they do - raise a notice of dispute via Equifax. You might need to chase it up a few times, the Virgin Mobile Credit Control team are rubbish. I've had to get them to rectify incorrect data on my equifax file last year and it was quite a challenge!

They simply were not reading the stuff Equifax were emailing them.

Good luck!