RBS Credit Card Rejected

taylor11_2

Hi all

I recently transferred my current account and ISA. In addition, I applied for an RBS credit card, meaning that all my financial dealing would be one with one organisation. I received a two weeks ago asking me to provide my new account number so as they can proceed with the application as Royalties Gold customer's receive a lower interest rate. I didn't have my account number at this point so a week later they sent another letter. As requested, I sent the information to RBS.

I received a letter from the bank today stating that I had been rejected for the credit card. The reason being that "my finances are fully committed" :eek: They made reference that they used Experian for their check. Now, I have checked my Experian credit report today and I have a score of 992. I know that their credit score does not mean anything to RBS, it is just the information they hold on me that is used to make a "responsible lending decision." I read with interest that I am currently using 15% of my available credit. I currently have around £2000 on my credit card at 0%. I paid for my car insurance as it was cheaper to pay off and being 21 insurance premiums can mount up. In addition, I have booked a holiday which makes up the remaining balance.

They searched my credit file on the 3rd August 2011 and I was advised that I had been approved and I had a credit limit of £1900.

I don't know if this is relevant, however, my current credit card limit is £8500. In addition, I have two current accounts that will eventually be closed when my RBS account is fully up and running. They have a combined O/D limit of £1500 and RBS has given me a £500 limit. (I never enter my O/D).

They have advised me that I have 21 days to appeal their decision and make them aware of things they haven't taken into consideration.

So the morale of this story is that I am looking for advice on the best way to approach this. I have just transferred my ISA with £4K to them. I have a really well paid job for my age with my salary potentially taking me into the 40% tax bracket. I just don't understand why they can't give me my credit card .

Look forward to everyone's advice. Please go easy - I am just new to the forums!!

Cheers
taylor11 :cool:

Eonel

You said you are using 15% of available credit and your credit card balance is £2000. My very crude maths says your total available credit is £15,000. That is a relatively high available credit for some-one who could potentially pay 40% tax & may be the cause of your problem.

My advice is to close or reduce the credit limit on cards where not needed. Give that a few months to reflect on your credit report & allow any dust to settle with RBS. Then apply again.

taylor11_2

Hi

Thanks for your response. I don't understand where Experian is getting that calculation from!!

Hmmmmmmmm.

Cheers
taylor11

Azrael_1701

taylor11 wrote: »

Hi

Thanks for your response. I don't understand where Experian is getting that calculation from!!

Hmmmmmmmm.

Cheers
taylor11

Thin air, as always....

izools

No, not thin air. The credit utilisation figure on Credit Expert is accurate, and is true.

OP, you clearly have lines of credit available to you that you didn't know about or forgot about. You need to go through the account data expanding each account and reading more thoroughly, on your Credit Expert membership.

Azrael_1701

izools wrote: »

No, not thin air. The credit utilisation figure on Credit Expert is accurate, and is true.

OP, you clearly have lines of credit available to you that you didn't know about or forgot about. You need to go through the account data expanding each account and reading more thoroughly, on your Credit Expert membership.

I actually meant the "score of 992"....

izools

Azrael_1701 wrote: »

I actually meant the "score of 992"....

Oh right, yeah, thin air :beer:

taylor11_2

Hi all

Thanks for the replies. I have a Next account with a £2K limit. But that is all. I also have a finance agreement with Volkswagen Financial Services which started last June and finished in 2 years. Will they take this into consideration as well?

Cheers
taylor11

izools

They will take *everything* into account. Anything you see on your credit file, they see (not the score, as that isn't part of your file).

They will add up everything you owe, on top of everything you have available, and consider whether you can afford any more on top of this given your income.

They will also look at stability - how long you've had your job, when you last moved, how long you've held your bank account, how long it's been since you opened your newest account, how long you tend to keep your accounts for, etc.

Instability is a big negative factor so things having changed recently lowers your credit worthiness greatly.

taylor11_2

Well...

I have spoken with RBS and they have based their decision on what information that bank holds on me... they obviously don't have anything as my accounts have just opened!

I have to send information regarding my salary and my bank statements showing my salary credit. The CSA also advised me that.... based on their calculations I have £47 left to live on at the end of each month :rotfl:Oh dear....

Again thanks for the input

Cheers
taylor11

jen245

The RBS group, in general, like you to have banked with them for at least 6-12 months before they'll give you a credit card. It took me 11 months to get a card from them