Credit Cards

impossible

Hi there


First timer, so here goes.

My youngest son applied for a credit card a couple of years ago. He was refused by Capital One, and by Abbey where he has a savings and ISA. Managed to get one from HSBC where he had a current account, no problem.
He also had a mobile phone contract and no problem getting car insurance.

He has recently jointly purchased a property, no problem with the mortgate whatsoever. But when he applied to the same bank a few months later for a credit card, (has they had a good deal going) he was refused.

We obtained a credit report when he first tried to get a credit card, but could see nothing on this which would effect him. When we discussed this with the credit agency, recently they said that it showed a NIL credit rating for him, and that maybe he should get a new credit report. Why? How would this make any difference to his NIL credit rating?

Recently in Top Shop whilst purchasing goods was asked if he wanted a store card as it gave him 20% on his purchases for that day. He agreed, filled in all the details and waited for the guy to come back from checking, ony to be told in front of all the other buyers that his application had been refused. He was very embarrased to say the least.


Any ideas on how we can get his credit score up. He has never had any bad debt and always pays bills on time.


My eldest son is forever getting applications in the post to apply for one, even at college Capital One granted him one.


Any ideas on resolving this problem would be greatly appreciated.

thanks

Bokkens

Welcome to MSE
I would start with the basics first and get a copy of his credit report from the likes of Experian and review it thoroughly for any unpaid or outstanding debts.
Check his identity details with the credit agency to make sure they are correct and that the company does't think he is somebody else.
Previous ownwer /occupier at his property may have had a poor credit rating and he may have had his credit score lowered because of the address he lives at this will need to be clarified.
There are also other factors employment,age wages,electoral roll,cout appearances/convictions etc,have a read through Martin's articles on credit scores and try and apply what you can to your sons lifestyle and take it from there.
If you get stuck post here again

Dylanwing

I cannot work out the mechanics of this. My credit record was not good 5 years ago, but since then has been pretty good. When obtaining my mortgage, and recently, an unsecured loan, I was described as excellent. But, about a year ago, the ultra-selective Vanquis declined me a card:huh:
Recently, my Sainsburys limit has been slashed, and I tried for a Post Office card, but was declined.

Talking to friends, it seems that many are being declined, and for no obvious reason. Perhaps credit card Companies have worked out a strategy of reducing bad debts.... by not lending any money!:p

WallyMan

Financial companies are becoming more clever in the way they decide to give a risk product (eg Credit Card). Basically most will capture a set of information from each customer and then run this through one or more of the external Bureau referencing services as well as reviewing current holdings (if you have any).

All will have different rules based on the risk policy but there are some fundamental things that you need:
- Clean financial record, eg no CCJs and do you pay your other credit cards on time
- Time on voters roll. If you've recently moved to a new house you may not yet appear on the Bureau companies databases at your new address
- Financial companies do not like people with little evidence of address history and certainly alarm bells might arise if you have less than say 3 years

Each company has different rules but all are trying to maximise their revenue while ensuring the minimum level of risk, ie minimise losses