Credit Card Declines

Angelbud

Hi There

Was wondering if anyone can advise...

I have good credit, and excellent payment history showing on all my accounts with equifax and experian.
However seem to be getting declined for recent applications for Egg + Sainsburys cards.
I only have 2 credit cards at the moment - Marbles (2500) and Capital One (200) - which I have only held for about 10 months.
I also have a car loan for 15000
I earn over 35k.
On asking why I have been declined they really cannot give me an answer - only that I do not fall into there critiria at the moment?

I can only think it is because I do not have over 12 months payment history on these accounts.

Any Ideas or advise on a good easy to get card?

Cheers
Carl

Cardinal-Red

This could be the reason but remember you have to start somewhere, so not having twelve months payment history is not a reason in itself (although at least one of the CRAs say that long standing accounts count in your favour...)

You say you have asked why: do you mean you appealed against the decision and they refused you again?

Reaper

Other factors include how long you have lived at your current address, whether you are on the electoral role, and how long you have been at your current employer. In case you haven't read it already Martin has an article on credit ratings.

Nesima

Angelbud wrote:

Hi There

I only have 2 credit cards at the moment - Marbles (2500) and Capital One (200) - which I have only held for about 10 months.
I also have a car loan for 15000
Carl

Are you a home owner ? i.e. do you have a mortgage ?
If you don't have a mortgage your access to credit will be limited, irrespective of how much you earn.

The fact that Capital One only gave you a £200 credit limit indicates that they regarded you as 'unproven' when it comes to advancing credit.

Perhaps some companies would regard having a £15k car loan as being reckless with money (no offence meant).

I think the only thing you can do is keep on paying regularly and build up more history.

danjaq2004

I have had money trouble in the past (who hasn't) and I have not been in debt since 1999 (when the courts 'made it all go away', if you catch my drift).

Now, I have a full current account with two banks, my 'active' one keeps increasing my overdraft and I have never had a problem with them.

However, they declined me a credit card last year and I have been with that bank for 2 years +. I want to get a card to better my credit worthiness and scoring etc. I have no credit cards currently, only a Maestro cheque guarantee, overdraft of £1,500, no storecards, no debts with anyone, all my bills (DDs) are paid , so not lateness etc. I rent and am single (sounds like a personal ad!).

What do I need to do to get a card...is my best chance with my bank again or try for another lender, if so, who?

Any help would be appreiated. Thanks.

Reaper

danjaq2004 - if your own bank refused you then it is not worth trying for a normal credit card with anyone else.

Instead I suggest you go for this Capital One card which guarentees acceptance. Note that the APR is high but if you pay it off in full each you will be charged nothing. Also expect a very low limit (perhaps a couple of hundred pounds) to start with and you will probably have to pay them a deposit up front. Despite all that it is worth getting as it allows you to rebuild your credit history. Buy something small on it and pay it off in full each month. Every time you do your credit score will improve.

danjaq2004

Thanks - I shall give them a go.

Just go my credit file from Equifax (online) and all looks clean. Got a Credit rating by them of 444 which is 'Good' and all my payments etc are good too.

I do not know what Experian have to say, their paper report will be with my soon enough.

What do you think? I don't appear to be a risk, on the contary, I should be a good candidate I would have thought? Anyway, there was no reference to my bad past (up to 1999) as they didn't ask for an addess that far back...any thought?

Cheers mate.

Reaper

Most card companies use Experian so wait and see what they say. Your lack of recent credit history will count against you but if there is nothing untoward on your report then it may indeed be worth having one more try for a normal credit card. If that fails then don't apply for any more as each credit search counts against you. Instead go back to the original plan and get the Capital One card.

Once you have a few months payments under your belt you can try again. Card issuers are always happier if somebody else has already given you a card and they can see you have been using it responsibly. It's just that nobody wants to be the first!

danjaq2004

Hi, I didn't know that most card companies used Experian, I'll have to wait and find out what they say. I know what you are saying about a 'lack of credit history', although the cards (debit) with the banks etc and the 4 mobile phone contracts (all running smoothly), may show a credit history of some sort?


I was 'guaranteed' for want of a better word by my bank that if I upgraded my account I would automatically be granted a credit card. This was sometime mid 2004 and I did not get it! They used Experian and I am wondering whether I stand a better chance now that time has passed and there are no problems. If you have had trouble with a card lender (e.g. Barclaycard) are you on their own 'blacklist' for future applications, even if they are 5+ years later?

Also, when you say about the Capital One card (which I have one...well not in my name but have my name on a card - third party), I wonder how 'guaranteed' it really is?!

Reaper

danjaq2004 wrote:

Hi, I didn't know that most card companies used Experian

See this thread for an idea of who uses which.

If you have had trouble with a card lender (e.g. Barclaycard) are you on their own 'blacklist' for future applications, even if they are 5+ years later?

Can't say, but I would have expected them to disregard anything that old.

When you say about the Capital One card (which I have one...well not in my name but have my name on a card - third party), I wonder how 'guaranteed' it really is?!

They say it is guaranteed as long as you are not currently bankrupt or listed on fraud databases. Remember their risk is small. If they don't like the look of you they will give you a £200 credit limit and ask for an upfront £200 deposit!

danjaq2004

Thanks for taking the time to reply to me, that thread you referred to is quite informative too.