Credit Card Help

redsontilt

Hi

Hopefully someone can offer some good advice on how to help with this one.

My Dad is looking to get a credit card with MBNA - namely the virgin atlantic credit card. Reason - i have one and clock up enough flying club miles each year for free upgrades on our yearly holiday. He wants to do the same.

He has been declined the card - they wont give a reason.

He's a reasonably well off person - Owns own home - no mortgage - no car finance - no loans.

He earns decent money each year. His experian credit score is 985.

Any ideas as to why he would be declined or things to do to help him get accepted.

He has a Barclaycard credit card with an average spend of £18k a year which is always paid back in full every month.

Thanks for any advice in advance.

redsontilt

Oh in the experian report there was one negative factor - "no successfully settled credit accounts"

Which is weird as he pays his Barclays CC off every month in full.

thebritishbloke

It could be absolutely anything, they might not like his first name, or his hair colour. Ignore your experian 'score', it's meaningless.

Is he on the electoral roll? If he has a decent CC history then that's all I can think of really.

grumbler

Are the points limited? If not, and credit limit permitting, can you make him a second/third cardholder?

Martyn14

Hi redsontilt,

Firstly, They have probably declined him purely because he does spend around 18k a year and pays it off in full each month, he's not an attractive consumer to them, they will just be losing out by giving rewards, and they won't be making a single penny from him as he will never pay interest.

And I agree with britishbloke on this, that credit score is quite a pointless number, quite clearly from your post, because if the score is so great then surely everyone would welcome him with open arms right? No.

I'm sure there's a good enough card for him out there, there are loads with flight rewards, failing that, a 0.5% cashback card would get him near enough £100 at the end of the year.

YorkshireBoy

redsontilt wrote: »

Oh in the experian report there was one negative factor - "no successfully settled credit accounts"

Which is weird as he pays his Barclays CC off every month in full.

A 'settled' credit account is one which has run it's course, ie 4 years 0% finance on a DFS sofa!...a 25 year mortgage...a 2 year bank loan...etc. Another example would be a credit card that's been run well for a few years and then closed (even though a new one has replaced it!).

Fruit_and_Nut_Case

Martyn14 wrote: »

...they won't be making a single penny from him as he will never pay interest.

MBNA would still make money on the fees that they charge merchants.

thebritishbloke

Martyn14 wrote: »

Firstly, They have probably declined him purely because he does spend around 18k a year and pays it off in full each month, he's not an attractive consumer to them, they will just be losing out by giving rewards, and they won't be making a single penny from him as he will never pay interest.

Rewards cards are usually only used by people who pay off their balance in full every month. It wouldn't make sense for someone to spend on a reward card and not pay it off in full.

People need to get the idea that companies will reject you because you won't make them any money out of their head. Banks also like "safe" customers that will use the card responsibly and pay it off, they make money from the transaction fees.

redsontilt

Guys - cheers for the replies - all interesting stuff.

Looking at it its either that the CC company wont make any money - which i dont think is right as the transaction fees will make a good chunk of change.

Maybe need to get him some interest free credit on a couple of purchases to give him some credit history.