Excellent credit rating but still refused card application

Fuzzy16

Title says it all. My credit report is excellent. Have today applied for a credit card through my bank and it has been refused.
Checked report last night and found something regarding a Barclaycard that was used years ago and settled in full, but I was still issued with a new card every now and then even though I no longer used it. This morning I spoke to card issuer and have had the account closed as this was the only negative thing on my report. I then applied on line with Nat West to apply for a card(we need a new cooker and I want to take advantage of the 0%interest)I have been declined.

I spoke to advisor who said that she couldnt understand this and that I should look at my report, I even mentioned that my husband is a discharged bankrupt to see if this had affected it, she said '' Oh... right'' does that mean this is the reason why.

I have also been told that it could be because I always pay things off on time (strange) Anyway the advisor asked me to print my credit report off and send to Head Office. Or maybe I will just invest in a new cooker element:mad:

pc1271

If you have a joint account or a joint mortgage with your husband, his bankruptcy could be the reason.

The_Boss

How do you know that you have a good credit rating? Only lenders know whether you fit their credit criteria.

Fuzzy16

According to my Credit Expert Report I have a rating of excellent. Does that not mean anything? Is there nothing I can do then regarding my OH's earlier BR and my application? or is it just hopeless, unless i apply for something else, obviously with a high interst rate.

The_Boss

wildz wrote: »

According to my Credit Expert Report I have a rating of excellent. Does that not mean anything? Is there nothing I can do then regarding my OH's earlier BR and my application? or is it just hopeless, unless i apply for something else, obviously with a high interst rate.

Nope, that 'rating' or any score means nothing as they are a reference agency and not a lender.

If you are financially linked to someone with a bankruptcy then I'm afraid to say you do not have an 'excellent credit rating'.

izools

There's no such thing as an "Excellent" or "Poor" credit rating.

Each lender has their own criteria and scorecard and offers lines of credit based on how closely the applicant fits their target market - but in this instance being financially associated to a discharged bankrupt is going to cause you serious issues for some time.

If you two don't hold any joint accounts then I would recommend you go through the "notice of disassocation" procedures with all three credit reference agencies and wait six weeks from the date they confirm the disassociation has been actioned before applying elsewhere.

If you do hold any joint accounts / mortgage / etc then your main focus should be him rebuilding his credit rating.

The first thing he must do is the "Post bankruptcy credit file cleanup" as detailed here:

https://forums.moneysavingexpert.com/discussion/677875

This is a long grueling process that necessitates very fine attention to detail and a lot of perseverance but is essential to making the first step back in to creditworthiness.

Once the cleanup has been done, and your husband has verified that the changes have taken effect by obtaining fresh credit files from all three agencies then he should submit an application to obtain

a) a Vanquis credit card
b) a Co-Operative Cashminder current account
c) a SIM-only mobile phone contract from Three

The credit card should be paid in full every month, preferably by direct debit. He only needs to use it for a couple of small purchases each month like one or two grocery shops. They won't charge interest if it is paid in full on time each month.

Once he has held these accounts and operated them perfectly for a year or two you will both start to find it much easier to obtain credit.

I've been bankrupt and five years later I'd say my credit rating is pretty much as high as anyone could hope for - Nationwide offered me a loan at 5.9% APR and AMEX just approved me for one of their Platinum cards.

I'm not saying this to gloat - but to say that it is possible to rebuild credit post bankruptcy but it takes a lot of work, and very fine attention to detail.

Good luck! :beer:

sharpy2010

wildz wrote: »

Title says it all. My credit report is excellent.

But you clearly don't have an excellent report, you've been declined for credit!

You wouldn't be declined if it was excellent!

izools

sharpy2010 wrote: »

But you clearly don't have an excellent report, you've been declined for credit!

You wouldn't be declined if it was excellent!

Try reading the thread.

She'd be declined for credit with an excellent credit history if associated with a discharged bankrupt...

sharpy2010

Im aware of that, but, due to being associated with a discharged bankrupt, she doesn't have (currently) an excellent credit rating.

It can be sorted, but at the moment, it isn't.

izools

I get your point.

I guess this is where technicalities make all the difference.

She may have a great credit file but a poor score in the eyes of most lenders