credit card rejection help

bumblesquatt

Hi guys,

I have recently been rejected for a credit card application and am not sure why.

I applied to tesco but was knocked back. I haven't had a credit card before so maybe that was the reason.

I currently have a loan for £2000 with my bank, i have had this since 2008 and have never missed a payment.

I was given credit to buy a bed and that has recently been paid off.

I have recently obtained a £400 overdraft because work have been getting my pay wrong since november (idiots!!) I have not gone over my limit for at least 3/4 years and all looked pretty good when I got my Experian report recently.

Apart from that, that is the only debt I have/had.

I only want the card to spread the cost of a holiday over a few months as opposed to paying in one lump sum.

Would it be worth applying elsewhere or should I wait a while?

Thanks in advance for your help :cool:

[Deleted User]

Are you on the electoral register? Have you been at your current address for a while? Look at this section of teh main site http://www.moneysavingexpert.com/loans/credit-rating-credit-score

bumblesquatt

yes i'm on the electoral register. i have only lived in my current address since july last year but I was also on it at my previous address.

bumblesquatt

i have looked at my credit report on Experian and the only real search carried out in the last 12 months is that of Tesco. There is an unrecorded enquiry and an insurance quotation which i assume lenders dont see.

The electoral roll info from my previous address doesn't appear to show my name but I was definitely on it and have a letter from the council stating that my name is on the register at that time. Could this be the problem?

both my current account and loan state satisfactory and have no late payments.

cifpower

Have a look, too, at your Equifax file

bumblesquatt

i have just looked at my equifax file and for my current account, it shows as being "arrangement to pay" for my current account for 6 months prior to January 2008 with a month of inactivity. It states this below the table

0 payment"s" 1 month in arrears; 0 payment"s" 2 months in arrears; 0 payment"s" 3 or more months in arrears. Arrangement to Pay has been registered on this account

Other than that, everything else looks fine. no previous searches have been carried out through equifax.

maybe this is the reason for the rejection, but the "arrangement to pay" is not mentioned on the experian report that tesco searched through?

cifpower

Arrangement To Pay is a really bad marker akin to a default and makes it difficult to get credit for 6 years.

bumblesquatt

thats probably it then!! Doh!!! It was just after i had graduated and struggled to get a job!! Didnt realise it would have that effect when sorting things out with the bank at the time and they actually gave me the loan to pay off the overdraft that was the problem.

is there anything you suggest i could do to help in the meantime?

thanks for your help

cifpower

You could try a sub-prime card like Vanquis, Aqua or Barclaycard Initial. You can use BCard's pre-app check to see what they may be able to offer you

bumblesquatt

i bank with barclays so will go into my branch and have a chat with them about it.

thanks again for your help

tyler29

or you could even try avoiding them all together it may be a blessing in disguise