Any Ideas???

ak6949

Hey Guys,

I'm sure you get these kind of questions all the time but I'm at a total loss as to whats going on here...

I'm 19 in a month and a bit, I've been a student at Uni since Oct 2006 and I've got a student bank account with Halifax (since Sept 06) with a £750 overdraft (which I've used twice ever) and £100 Cheque Guarantee and an ISA which has just under 2k in it... I've also got an current account with Abbey (Visa Electron) which is now in the process of being closed... I'm working part time earning around if not more than £8000 a year (12 hrs a week term time, near full time in hols) plus my student loan on top.

Back just before I started uni I thought I'd get a Credit Card for emergencies and also I knew it would improve my credit rating in the long term as I knew I would use it responsibly (I'm incredibly controlled over my money)... Applied for an Egg card and was declined, I was advised to approach my bank who were more likely to be able to help. I did so and was declined again. This was in Sept 06... I checked my experian file, no problems, my credit score had dropped down to 768 from 867 as a result of all this. Not too happy, but I decided to leave it. Got myself a phone contract for uni, no problems with credit check and off we go.

Now, I checked my score on experian again 2 days ago and it had risen to 920/1000 which according to them is "higher than 60% of UK consumers applying for credit"... so I thought I'd reapply and would try Virgin. I rang up their credit dept beforehand and explained my situation and asked if it was even worth applying. Woman on the phone was very helpful and said to apply but inevitably they'd probably want to see my bank statements etc to see if I was creditworthy but I had a better chance than most people in my position. So I decided to try it, flat declined. Rang up the credit dept (today, 2 days later) and asked for a reason... apparently MBNA (Virgin) aren't first time lenders... then why the hell didnt the website or the woman tell me this in the first place?! Unhappy, I thought I'd chat to my bank about it to see if they had any suggestions...

According to the woman on the phone, her computer system said that I was a "probable accept" for a Credit Card... so I applied... Guess what? Declined.

I'm at a total loss now, I dont have bad credit history, I simply lack it but how am I meant to get history if no one will accept me? I dont think its the multiple credit searches as I've read everywhere that 2 or 3 with 6-8 month gaps is fine... If my own bank won't accept me I'm unlikely to get one anywhere else.

Any suggestions as to whats going on here? Maybe I should appeal against my banks decision?

Thanks

youknowwho

ak6949 wrote: »

Hey Guys,

I'm sure you get these kind of questions all the time but I'm at a total loss as to whats going on here...

I'm 19 in a month and a bit, I've been a student at Uni since Oct 2006 and I've got a student bank account with Halifax (since Sept 06) with a £750 overdraft (which I've used twice ever) and £100 Cheque Guarantee and an ISA which has just under 2k in it... I've also got an current account with Abbey (Visa Electron) which is now in the process of being closed... I'm working part time earning around if not more than £8000 a year (12 hrs a week term time, near full time in hols) plus my student loan on top.

Back just before I started uni I thought I'd get a Credit Card for emergencies and also I knew it would improve my credit rating in the long term as I knew I would use it responsibly (I'm incredibly controlled over my money)... Applied for an Egg card and was declined, I was advised to approach my bank who were more likely to be able to help. I did so and was declined again. This was in Sept 06... I checked my experian file, no problems, my credit score had dropped down to 768 from 867 as a result of all this. Not too happy, but I decided to leave it. Got myself a phone contract for uni, no problems with credit check and off we go.

Now, I checked my score on experian again 2 days ago and it had risen to 920/1000 which according to them is "higher than 60% of UK consumers applying for credit"... so I thought I'd reapply and would try Virgin. I rang up their credit dept beforehand and explained my situation and asked if it was even worth applying. Woman on the phone was very helpful and said to apply but inevitably they'd probably want to see my bank statements etc to see if I was creditworthy but I had a better chance than most people in my position. So I decided to try it, flat declined. Rang up the credit dept (today, 2 days later) and asked for a reason... apparently MBNA (Virgin) aren't first time lenders... then why the hell didnt the website or the woman tell me this in the first place?! Unhappy, I thought I'd chat to my bank about it to see if they had any suggestions...

According to the woman on the phone, her computer system said that I was a "probable accept" for a Credit Card... so I applied... Guess what? Declined.

I'm at a total loss now, I dont have bad credit history, I simply lack it but how am I meant to get history if no one will accept me? I dont think its the multiple credit searches as I've read everywhere that 2 or 3 with 6-8 month gaps is fine... If my own bank won't accept me I'm unlikely to get one anywhere else.

Any suggestions as to whats going on here? Maybe I should appeal against my banks decision?

Thanks

I feel your pain!

There are some credit cards out there that are designed for ppl with poor/no credit history, and help u get into the cc market.

some of these cards are Vanquish, Aqua and Capital one do one. Now these cc's charge about 40% APR, astouding, i know, but.... What you need to do is use them for your day to day use, like petrol, shopping then clear the balance off in full every month (u dont wanna get hit with that sort of APR). If you do this for 12 months then you shoukld have sufficeient history for a normal credit card. Now these cards wont offer any 0%, they are basically "price for risk" cards.

If you do this for 12 months then u can start getting your 0% etc andenjoying some interest free!

ak6949

Hi Youknowwho,

Thanks for all your help, just a couple of questions...

- Do you reckon I should wait before applying for one of those cards, having regard to my number of recent applications?
- Any recommendations on which of those 3 to go for, as they essentially seem to be the same?

Cheers

ak6949

*bump* - Sorry to be a pain, bit lost on this one, any help appreciated!

DawnW

When my daughter was a uni student a few years ago she was offered student versions of high street bank credit cards, and settled on a Barclaycard. Don't banks offer these student cards any more? Seems surprising if they don't.

inmypocketnottheirs

What address are you giving when applying? Is it halls of residence, tempory accomodation or home address? Have you moved around a lot. The critical question is are you on the electoral roll? If you are not, or have a history of moving around a lot, this could be your problem.

mrtn

hi

there's also one more important thing - as far as i remember Virgin (MBNA) uses Equifax so maybe there's something recorded against you ...may be worth checking their credit report

i wish you good luck anyway

Vampgirl

Maybe it would be worth opening a card designed specifically for students? I know things might have changed a bit since I was at uni, but I got a Natwest combined card account when I was a student. I kept my address at my parents house and I was definately on the electoral role, but I had no part time job - my only income was student loan and grant. I also had a student account with them - I think they still have a special arrangement for student account holders.

Edited to add: found it! Student credit card as long as you have a student account with them: http://www.natwest.com/personal02.asp?id=PERSONAL/DAY_TO_DAY/CREDIT_CARDS/STUDENT