Student - Phantom Credit Card

Shikayo

Hi All,

I am currently moving into my third and final year at university. I opened a NatWest Student Account in 2008 - my first year of university - and have remained loyal to them ever since.

When I opened my account, I also applied for the NatWest Student Credit Card. The credit limit was £500. However, I never used it and last year in November, NatWest closed the account. I had neglected it for a year.

In January, I applied for another NatWest Student Credit Card - I finally had a cause to use one. My application was denied though, on the grounds that I 'already had a credit card'. I spoke to someone over the phone at NatWest who informed me that it can take eight months for a cancelled credit card to clear from the 'system'.

In July, I reapplied for a NatWest Student Credit Card. I was declined for the second time. I'm unsure as to why, however, at the time I was overdrawn by £1,300. My student account overdraft limit is £1,400. I have never exceeded my overdraft limit however.

Yesterday, I applied for a Virgin Credit Card. My girlfriend, also a student, has one, and finds it incredibly useful. Within a couple of hours of applying though, I received an email informing me that my application had been denied. I'm confused as to why.

Today I obtained a Statutory Credit Report from Equifax. According to the report, I have three accounts:

1. NatWest Student Account
2. Orange iPhone Contract
3. NatWest Student Credit Card

Should it still have information on my NatWest Student Credit Card, even though it was cancelled last year?

Based on my limited experience in banks and credit cards, I have formed two hunches as to why I keep getting declined:

1. I am a student who is currently £1,300 overdrawn (although this won't be for long, as my next student loan installment is due at the end of September).

2. People think I still have a credit card that I don't use. It is still on my credit report.

****

There's my problem. I have tried to be as detailed as possible in describing my situation. I hope someone can help me figure out why I keep getting declined. I would be eternally grateful for any advice.

The reason I have for wanting a credit card is to pay the deposit on my final year accommodation. I know that if I use a credit card to pay it in September, I can repay in full the following month when I get my student loan installment. I would use my credit card as a debit card, essentially.

Thank you for reading.

balmk

Hello,

If you aren't getting any luck with getting Natwest to stop reporting that you have a credit card which you don't, you can try raising a dispute with each of the credit reference agencies who Natwest reports to (the 3 are Equifax, Experian, and CallCredit though they may only report to 1 or 2 of these). This is a free service and can usually be done online, though you may need to have a copy of your statutory report (£2) to be able to verify that the phantom account is being reported to that particluar agency.

The agency will dispute the entry on your behalf which will *hopefully* result in the entry being removed.

Hope that helps!

Shikayo

Thank you very much balmk. Although, as I was a little confused by the Equifax Credit Report, I have JUST signed up for the 30-Day Free Trial at Experian/Credit Expert. THEIR report also has my NatWest Student Credit Card details, however, their report has additional information on it - it says the account was settled in March this year. Does this mean that the account is registered as closed?

If so, does anyone have any idea as to why I am still being declined? Am I too young for Virgin? Ahhhh...

lisyloo

it says the account was settled in March this year. Does this mean that the account is registered as closed?

Yes that exactly what it means.

It's probably your income/debt ratio that's the problem.
What is you income?
If you mind saying then can you tell us how much available credit you have as a % of your income?

Shikayo

lisyloo wrote: »

It's probably your income/debt ratio that's the problem.
What is you income?
If you mind saying then can you tell us how much available credit you have as a % of your income?

Ah, I see. Virgin asked for my income, and as I don't have a job at present, all I could provide was the student loan I receive each year. This year it's £6,000.

System

If the card issuer doesn't have a specific category for student then you just look like a person with a small income.

NatWest are still your best best.
Try applying for a non -student card (like their classic card) and see how it goes.

lisyloo

That's a low income (perhaps not in student terms but in normal terms).

You would be better off going to Nat West.
They have all your internal history to go on and are more likely to offer you a card than any other bank because they have your history since 2008.

Shikayo

Thank you very much for your advice Heng Lee and lisyloo. I did tell Virgin I was a student but it obviously doesn't make a difference. I'll try again with NatWest and see how it goes. It's so hard to get your foot on the ladder for the first time. Still learning.