mbna credit card application declined

chellebee

Hi all,

This is my first time using this forum but I hope someone can help. I have recently applied for a credit card for the first time. After reading info on this site I applied for mbna visa cashback card and has no debts and wanted to earn cashback.

Applied online and few days later had a letter stating been declined. no reason given just says:

" We reviewed your application using a credit scoring system which takes into account the details that you have provided,
information from the credit reference agency and our own customer experience. We believe the decision to be correct,

however you are entitled to appeal this decision if you have up to date, relevant information"

I checked my experian credit profile as they suggested and it comes back as excellent. There is no number or email to contact them to ask for reason. Should I just forget it, write to them or is tehre another way to find out reason?

Also should I avoid applying for another card as dont want to affect credit score as will be looking to get a mortgage in few months.

Any help would be very appreciated. Kind regards, Michelle

Tixy

You say you have never had a credit card before? This may well be the problem

When you look at your full credit report what credit accounts do you have showing? Do you have an overdraft? have you had loans in the past? Do you have any other accounts showing such as phone contracts etc?

The excellent rating is a bit of a red herring, lots of people have excellent ratings as there is nothing 'bad' on their file but it doesn't take into account if they have little or no history or many other financial considerations that the lender will take into account - such as your income etc.

If you have very little past credit history then this can make it as hard to get a new credit product as someone with bad credit problems.
Thats because the lender has very little to judge you on about whether you are likely to make the repayments and use the card responsibly.

Have a read of this article - Credit Rating: How it works and how to improve it

then you might want to consider either your own bank, who already know a bit about your financial behaviour, or you might need to apply for one of the sub-prime cards, as described in the article.

chellebee

Thank you tixy. Yes I've never had a credit card, have no debts and only have three accounts (orange, o2 and next). My last loan was in 2004 and paid off, student debt paid off and although have an overdraft I never use it. I wondered if this might be a problem, thats why I thought I'd get a credit card to help improve rating so when we come to get mortgage it would be better?
would you recommend I try to apply for another? I was considering one of the barclaycards as I bank with them? Many thanks for your advice.

jordanlitz

Try using Barclaycards pre-checker, It will come up with what chance you have of getting what cards, you will probably find it will be the initial if its your first c/c