HELP!: Rejection from Credit Lenders with no bad credit past?

jen87

Hey.

I recently decided to start building up my credit score in preperation for any future commitments such as getting a mortgage...etc. It so happened that I was going abroad and wanted to get a Credit Card as a precaution. I applied for the Halifax Clarity card of which I got rejected. After some thought I thought this would simply be due to their strict lending requirements and as I have not really used credit cards in the past this may have been the reason for my rejection.

After reading information on those with a bad or no credit history to try for cards which could help build a score I decided to apply for the Capital One Luma card. Again I got rejected. I have never been in debt, I am able to gain and renew mobile phone contracts and I was able to finance a car without any problem. In fact I even paid off my car early to avoid paying more interest and it will reflect good on my report. I have always been conscious of my credit score as I know how badly having a bad score can effect future choices.

Since applying for that card, I requested a credit report from experian and I saw nothing out of the ordinary, no defaults, no debt, nothing!

I am confused and feel as I have nowhere to ask for advise on this matter as this is now a big concern for me.

Please if anyone can suggest any information of where I can get some guidance on this matter or had a similar experience I would be very grateful.

UsetheFORCE

jen87 wrote: »

Hey.

I recently decided to start building up my credit score in preperation for any future commitments such as getting a mortgage...etc. It so happened that I was going abroad and wanted to get a Credit Card as a precaution. I applied for the Halifax Clarity card of which I got rejected. After some thought I thought this would simply be due to their strict lending requirements and as I have not really used credit cards in the past this may have been the reason for my rejection.

After reading information on those with a bad or no credit history to try for cards which could help build a score I decided to apply for the Capital One Luma card. Again I got rejected. I have never been in debt, I am able to gain and renew mobile phone contracts and I was able to finance a car without any problem. In fact I even paid off my car early to avoid paying more interest and it will reflect good on my report. I have always been conscious of my credit score as I know how badly having a bad score can effect future choices.

Since applying for that card, I requested a credit report from experian and I saw nothing out of the ordinary, no defaults, no debt, nothing!

I am confused and feel as I have nowhere to ask for advise on this matter as this is now a big concern for me.

Please if anyone can suggest any information of where I can get some guidance on this matter or had a similar experience I would be very grateful.

I would manually appeal the refusal off Luma as I believe the card is like the Capital One Secured Card, you should get it providing no major adverse information is on your credit files.

BugsyBrowne

For a kick off don't take no notice of the credit scores that credit reference agencies are selling you as they don't lend money they are infact pointless as each lender has their own scoring system that takes in more factors then what Experian does.

Obviously getting prime cards require a good history of managing other credit cards for a long period of time and paying on time with no missed/late payments.

Are you in the electoral roll?
Financial associates?

Vanquis & cap1 classic are the major players for building credit history and if managed well they're a good starter card.

jen87

Thanks for the responses. I will call Luma/Capital one first thing on monday to enquire. The last few years I have moved quite a bit but have been told this shouldn't really effect getting a card. But I have been on the electoral roll for all my addresses.

Yes I was going to try and get the Luma card and use it for 6 months or so and pay it off by direct debt as I understand the big interest if I fail to do so. Then move on to a better card. possibly one that would offer a 0% period.

I did the MSE credit calculator which gives a rough estimation on how much of a 'risk' i would be and I landed in the middle as being a good risk.
Any other things I could be missing out on that would effect my 'score'?

BugsyBrowne

jen87 wrote: »

Thanks for the responses. I will call Luma/Capital one first thing on monday to enquire. The last few years I have moved quite a bit but have been told this shouldn't really effect getting a card. But I have been on the electoral roll for all my addresses.

Yes I was going to try and get the Luma card and use it for 6 months or so and pay it off by direct debt as I understand the big interest if I fail to do so. Then move on to a better card. possibly one that would offer a 0% period.

I did the MSE credit calculator which gives a rough estimation on how much of a 'risk' i would be and I landed in the middle as being a good risk.
Any other things I could be missing out on that would effect my 'score'?

Ignore credit calculators and other silly ( am I worthy type credit checks) without a credit history you are a very high risk until you start managing some credit lines.

YorkshireBoy

jen87 wrote: »

The last few years I have moved quite a bit...But I have been on the electoral roll for all my addresses

How long at your current address?

What did the bank that receives your salary, pays your bills, and knows all about your financial circumstances, say when you asked them for a credit card?

techspec

jen87 wrote: »

Thanks for the responses. I will call Luma/Capital one first thing on monday to enquire. The last few years I have moved quite a bit but have been told this shouldn't really effect getting a card. But I have been on the electoral roll for all my addresses.

Yes I was going to try and get the Luma card and use it for 6 months or so and pay it off by direct debt as I understand the big interest if I fail to do so. Then move on to a better card. possibly one that would offer a 0% period.

I did the MSE credit calculator which gives a rough estimation on how much of a 'risk' i would be and I landed in the middle as being a good risk.
Any other things I could be missing out on that would effect my 'score'?

Don't know who told you moving isn't a problem - it is. They want to see stability.

You say you've been on electoral registers - but are you on the one you live at now - thats all that matters.