I've got an excellent credit rating. So why do I get declined?

mrfracas

I know it's unlikely that I will make any money for lenders/creditors; but I don't think I should be turned down because my repayments are full and prompt.

What I am looking for is a card with a limit of at least £2000, which I can pay back in over 12 months time at 0% interest.

I'm still waiting to hear back from an application for a Tesco Credit Card; but I've already been declined by M&S.

However, my credit rating is great; I've been in the same job for nearly 2 years; I've got proof of my address for the last 3 years and then some (I've lived in 2 properties in the last 5 years); and I've no debts, besides my student loan.

I want to spend little more than I feel I have to, and that's why I believe that getting the above specs on a card would be perfect for my requirements.

If I get turned down by Tesco (or I'm unable to negotiate the limit that I desire), what are my alternatives, given my circumstances?

Many Thanks

Matt

Empty_pockets

I was in the same situation. applied and got accepted for the crappest Capital 1 card. Started with a 1k limit, upped to 2K after 3 months automatically.

rising_from_the_ashes

Did M&S give any reason for declining you?

Have you checked your credit report to make sure there's nothing untoward on it?

Also, please bear in mind that every card you apply for will show on your report for others to see, so it may make it more likely for you to be turned down by others.

izools

Have you had a credit card or bank loan in the past?

mrfracas

rising_from_the_ashes wrote: »

Did M&S give any reason for declining you?

Have you checked your credit report to make sure there's nothing untoward on it?

Also, please bear in mind that every card you apply for will show on your report for others to see, so it may make it more likely for you to be turned down by others.

They said I'd receive notification through the post.

The fact that it goes on your credit report just adds insult to injury. I'm unsure how to check it, though; will that affect my rating?

Thank you both for your advice.

mrfracas

izools wrote: »

Have you had a credit card or bank loan in the past?

I have a cashback card with my bank. I pay in full every month. However, in January - thanks to problems with my internet service - I missed the payment and my card was blocked. Thankfully, I sorted this over the phone and made a complaint about how difficult it was to rectify this error. They refunded my late payment charge and interest; but I guess it's left a black mark next to my name.

I have never had a bank loan. The only loan I've had to my name is a student loan.

As a side-note, my credit rating was checked by Vodafone several weeks ago and they confirmed my rating was excellent. But I'm assuming that their criteria will be quite different to that of banks and creditors.

young_money_saver

m&s and tesco credit cards are very difficult to get. sometimes even with an excellent credit score you might not appeal to either of them. they might want someone with a larger credit profile ie. 5 credit cards, 2 mobile phone contracts, 4 current accounts and no late payments, a homeowner with a large salary whos been employed with the same company and at same address for 5+ years. debt to income ratio, and many many more factors. as mentioned earlier you might not be their ideal customer for unknown reasons to us. good luck with the tesco credit card

mrfracas

young_money_saver wrote: »

they might want someone with a larger credit profile ie. 5 credit cards, 2 mobile phone contracts, 4 current accounts and no late payments, a homeowner with a large salary whos been employed with the same company and at same address for 5+ years. debt to income ratio, and many many more factors.

Thank you for the advice, YMS.

I've still not heard anything from them and it's been several days now. I heard from M&S within 24 hours.

Oh well! Here's hoping!

Can anyone suggest other good alternatives?

I liked both of those cards because they offered 15 months at 0% interest, which would be an ideal period to budget the savings and repayment.

rising_from_the_ashes

Go onto the Experian and Equifax websites and you should be able to sign up for a 30 day free trial - just remember to cancel before the end.

Alternatively you can request a copy of your statutory report for £2 from both of them (you do need to check both).

If you had a late payment then this is likely to be recorded on your file - if the ban agreed it was not your fault and refunded the charges etc, they may remove it.

mrfracas

rising_from_the_ashes wrote: »

Go onto the Experian and Equifax websites and you should be able to sign up for a 30 day free trial - just remember to cancel before the end.

Thank you very much.

If I have no luck with Tesco, then I will do this.

Even so, I am curious; so I might as well do it anyway.

Many Thanks

Matt

rising_from_the_ashes

I'd advise doing it anyway (and on a fairly regular basis) - it lets you sort out any issues / get them resolved if you can so that if you need to apply for credit in a hurry you don't have to start worrying about sorting your file out then.

It doesn't affect your report in any way.