Rejected by MBNA, what next?

benjyman_2

I've recently been rejected from the MBNA Cashback AMEX, I have just graduated and have now started a Grad job on £27k. I've had a student overdraft which I exceeded a couple of times but have had a contract mobile for 4 years and always paid on time, held the same bank account for 5 years and have never moved apart from to student houses. I've looked on Equifax and can't see anything out of place.

The reason they gave was that I hadn't been in employment for long enough and to apply again when i'd been in employment for 3 months. A mate at work is in exactly the same position and they granted him credit but that's beside the point I guess. I know you can get a credit card as a student so it seems odd that now i've got a job they've rejected me.

I'm looking at buying a house in the next year and really need to build up some credit credibility. Should I phone up MBNA and ask them to reconsider nicely or are there any other options which will build my credit history? I'm also worried that my file will now read that i've been refused credit. Will I have to take one of the credit building cards for a while and then get a card with some benefits?

Thanks for your help.

YorkshireBoy

benjyman wrote: »

I've had a student overdraft which I exceeded a couple of times

Do your credit reports show these breaches?

have never moved apart from to student houses.

Were you on the electoral roll* at each of these houses? And are you on the electoral roll* at the address you gave MBNA?

I've looked on Equifax and can't see anything out of place.

What about Experian?...whom MBNA primarily search in my experience.

A mate at work is in exactly the same position and they granted him credit but that's beside the point I guess.

Yes it is, because he won't be in "exactly" the same position as you.

I know you can get a credit card as a student so it seems odd that now i've got a job they've rejected me.

MBNA don't do student credit cards do they?

Should I phone up MBNA and ask them to reconsider nicely

No. You should write to them instead, detailing your credit-worthiness, financial circumstances, and supplying evidence of savings account balances.

or are there any other options which will build my credit history?

Credit builder cards are an option, but with a salary of £27K you should qualify for mainstream. What about your bank?...the one that receives your income.

I'm also worried that my file will now read that i've been refused credit.

Your file won't show a rejection, merely that a credit search was made.


* As verifed by your CRA files, not by the fact that you posted the form off.

chattychappy

Agree.

benjyman wrote: »

The reason they gave was that I hadn't been in employment for long enough and to apply again when i'd been in employment for 3 months.

They don't always say anything so specific or useful. So this probably was the principal reason. (Of course it's no guarantee that you will be accepted in 3 months - policies and your circumstances could change.)

People who haven't had jobs for long are often the first to lose them. Losing a job can plunge people into not paying. When CCs try to enforce, they typically don't get very far - people do statements of means and the upshot is often that the CC will just get a few quid a month or whatever.

Ben8282

Perhaps you should be more realistic about the TYPE of card that you applying for. Don't phone MBNA and ask them to reconsider. Instead, apply for a card more suited to a person who has had a job for less than 3 months and has lived only at home/in student accomodation.

hello2007

benjyman wrote: »

I've recently been rejected from the MBNA Cashback AMEX, I have just graduated and have now started a Grad job on £27k. I've had a student overdraft which I exceeded a couple of times but have had a contract mobile for 4 years and always paid on time, held the same bank account for 5 years and have never moved apart from to student houses. I've looked on Equifax and can't see anything out of place.

The reason they gave was that I hadn't been in employment for long enough and to apply again when i'd been in employment for 3 months. A mate at work is in exactly the same position and they granted him credit but that's beside the point I guess. I know you can get a credit card as a student so it seems odd that now i've got a job they've rejected me.

I'm looking at buying a house in the next year and really need to build up some credit credibility. Should I phone up MBNA and ask them to reconsider nicely or are there any other options which will build my credit history? I'm also worried that my file will now read that i've been refused credit. Will I have to take one of the credit building cards for a while and then get a card with some benefits?

Thanks for your help.

Apply for Barclaycard intial they do not ask how long that you have been in employment only for the name and telephone number of your employer.

benjyman_2

I've been on the electoral roll at my home address for 5 years and it displays that on my Equifax file. I understand that I should look at other cards more suitable to my means - my question is which one should i go for?

I'm tempted to wait until i've had my first month's wages, which includes a joining bonus, before applying again. Will anyone other than my current bank be able to see this income or not? If not then i'll apply for a CC with my bank (Santander).

chattychappy

No, nobody else will see your income. They will go by what you put on the form. In rare cases they might subsequently ask you to substantiate what you say after the event. More likely they will just phone an employer to check you work where you say you do or do nothing to check.

If you "change your story" between applications too much, a shadowy outfit like National Hunter might cough. (It could also be fraud.)

(Last para included for completeness... in case other people get ideas from the first para.)

saskay

benjyman wrote: »

I've been on the electoral roll at my home address for 5 years and it displays that on my Equifax file. I understand that I should look at other cards more suitable to my means - my question is which one should i go for?

I'm tempted to wait until i've had my first month's wages, which includes a joining bonus, before applying again. Will anyone other than my current bank be able to see this income or not? If not then i'll apply for a CC with my bank (Santander).

Try Sygma Bank cards. Search on this forum - there are loads of threads.

Moneysupermarket has a "smart search" freature where they try to match you with credit card providers who are likely to accept you.
http://www.moneysupermarket.com/credit-cards/

callistris

Dont bother applying for sygma cards with a Santander bank account as I recently tried and their systems for some reason don't recognise Santander accounts, as they keep saying they can't find your account number at the sort code provided:eek:

I phoned them up about it and Sygma claim its a problem with Santander and not them!!:(

benjyman_2

Is the Tesco Clubcard CC any good and what army chances of being accepted?

Ben8282

benjyman wrote: »

Is the Tesco Clubcard CC any good and what army chances of being accepted?

Probably too upmarket again. Trying your own bank first would be a logical choice .... otherwise go for one of the starter cards. Another poster suggested Barclaycard Initial, the key word here being 'Initial'.

I don't really know about the Tesco clubcard but over the years I gave gained the impression that these supermarket cards (Tesco, Sanisburys, M&S etc) tend to be given to people whose profile fits what these supermarkets are looking for - married couples in stable employment being owner-occupiers living in mortgaged semi-detached houses with 2.4 children (or whatever) - and if you don't fit that profile, you don't get the card.

My first credit card was a Mastercard (called 'Access' in those days) issued by my own bank. I didn't get an Amex card until a few years later by which time I was a homeowner. Interestingly, I have held a number of cards over the years including high-level Amex charge cards and a Diners Club card (who accepted me before Amex did) but have never been accepted for a supermarket credit card.