No debts, paying on time but get declined for Credit Cards

SeduLOUs

jumperabv3 wrote: »

My current salary before tax is about £57,600 - I think in my applications I only put £40,000 - because only recently I got a raise in my salary in my work so I didn't include that neither, but I should have put £45,000 at least but I always put less than what I get because after tax you are not left with a lot.

If you are putting different figures on different applications then this could be causing you problems aswell.

An application form normally makes it clear whether they want the figure before or after tax, and the vast majority of the time they want to know your gross salary (i.e. before tax).

State factually whatever your actual gross salary is at the time of making the application. If you've had a recent payrise, include it.

jumperabv3

SeduLOUs wrote: »

Was all the loan cancelling very recently? If so I wouldn't apply for anything else at all for at least 3 months, preferably 6.

It was on the 25th of August 2015, quite recently.
And I was "smart enough" to already apply for new credit-cards ... darn.

SeduLOUs wrote: »

If you get turned down by a card (Creation Everyday as the example) then don't bother applying again to that lender for at least 6 months. Many lenders actually tell you not to bother applying for 6 months if you have been rejected, they won't even look at your file again to see if anything has actually changed, just instant no.

Reducing limits can have a bit of a negative impact in the short term, but if the plan is to not apply for anything else for the next 3-6 months then it's probably best to get your affairs in order now - half the limit on some of your cards if you don't need them to be so high. If you have any old dormant accounts then look at closing them (the only exception to this is if the account you're closing is a long standing account and the one you are leaving open are only a year or two old).

You haven't got any real nasty stuff on there, and you've been accepted for a loan fairly recently which suggests it's not all bad news, and it probably does just boil down to some over-zealous applications.

Thank you, so you suggest reducing the limits on the BA Amex & MBNA by 50% and this way long term (6+ months) it should help me get new cards?

Candyapple

Keeping your Metro bank account ‘live’ is fine.

If you are not on the electoral roll this is a huge factor. You need to write to your local council and ask them for a letter to prove you are registered on the electoral roll. You then need to forward a copy of this letter to all 3 credit reference agencies for them to update their records, however this may take a few months so have some patience.

Why did you make multiple applications for the Creation card? Did you think applying daily/monthly would increase your chances? You do realise that credit searches get recorded instantly, so even if you applied for 3 cards in 1 day, any lender would see the applications you made on that very day.

Yes all you can do now is wait, time is the healer. For future reference, if you get declined by a lender, leave them well alone for at least 6 months minimum and in the ‘downtime’ make sure you lower some of your balances / check that everything is ok across all your credit reports and nothing adverse is being reported. Ideally, if you can, wait at least 12 months or until the first search from them drops off.

If you are not using your overdrafts, get rid of them. They are only adding to your total credit available pool and going against you for when you want to apply for more credit.

Why did you apply for one loan of £1k and pay it back so quickly, only to then try and apply for a further loan of £5k? Surely you realised how bad this would look? You basically wasted a credit search for no reason.

Yes you need a copy of your credit report from all 3 of the CRA’s as that is the only way you will get a complete picture of what is what.

If you are using/needing to keep the £6k limit with Halifax, that’s fine. Before you lower any limits, how much do you owe on the BA and MBNA cards?

You are lucky your salary discrepancies haven’t landed you on the CIFAS register / National Hunter database.

SeduLOUs is giving some very good advice, you should listen to it.

SeduLOUs

jumperabv3 wrote: »

Thank you, so you suggest reducing the limits on the BA Amex & MBNA by 50% and this way long term (6+ months) it should help me get new cards?

It would be my guess yes, but that's the only guarantee I can give.

Every lender is different and every lender has their own secret criteria, so we can only best guess the best course of action in the long run.

On that basis, only reduce the limits to what you can manage with - don't reduce a limit that you need and be dependent on an application being successful if that makes sense?

I presume you know about the eligibility checker? You can do a 'soft' application (i.e. no footprint on your file) which will give you chance of success as a percentage for obtaining most high street cards. It's been fairly accurate in my personal experience, so always worth going there first when researching card to find which you are most likely to be accepted for.

jumperabv3

Candyapple wrote: »

If you are not on the electoral roll this is a huge factor. You need to write to your local council and ask them for a letter to prove you are registered on the electoral roll. You then need to forward a copy of this letter to all 3 credit reference agencies for them to update their records, however this may take a few months so have some patience.

I already have this letter from the council.
I am not sure I understand how to do that ... do I need to create an account with all the 3 credit agencies, or just send it by email / post?
I tried to do it with Equifax, sending them a ticket with a scan of this letter enclosed to the ticket ... so far I don't see they have updated it - I asked them what's wrong - they said it takes time - and this was like 2 months ago!

Candyapple wrote: »

Why did you make multiple applications for the Creation card? Did you think applying daily/monthly would increase your chances? You do realise that credit searches get recorded instantly, so even if you applied for 3 cards in 1 day, any lender would see the applications you made on that very day.

Yes, I didn't realize it back then :(:( it was honestly a hope that something went wrong and I will try again and then I tried with previous addresses - nothing worked but I did get tons of records on my credit score, yeah.

Candyapple wrote: »

Yes all you can do now is wait, time is the healer. For future reference, if you get declined by a lender, leave them well alone for at least 6 months minimum and in the ‘downtime’ make sure you lower some of your balances / check that everything is ok across all your credit reports and nothing adverse is being reported. Ideally, if you can, wait at least 12 months or until the first search from them drops off.

If you are not using your overdrafts, get rid of them. They are only adding to your total credit available pool and going against you for when you want to apply for more credit.

Why did you apply for one loan of £1k and pay it back so quickly, only to then try and apply for a further loan of £5k? Surely you realised how bad this would look? You basically wasted a credit search for no reason.

Answer in one word: arbitrage... it's not exactly regular gambling ... it's more like arbitrage when I get an opportunity to make easy "free" 400 - 500 GBP - it's like an investment - you see? I bet on 2 outcomes and make profit out of it no matter what the result is ... but I do it rarely in order to not get my accounts closed with the bookmakers. So I needed "urgently" 5,000 GBP for it as I saw an opportunity to make about 500 GBP easily, and when Halifax asked too many questions since my loan went into manual review (and wasn't approved automatically like the first time) - then I had to "decline" it, rush and do it via Neteller, I did make profits from this - but screw up my credit as you can see ... yes, I'm aware of all that... I did screw myself up quite nicely for the next 6 months...

Candyapple wrote: »

Yes you need a copy of your credit report from all 3 of the CRA’s as that is the only way you will get a complete picture of what is what.

Who is the 3rd? :eek:

Candyapple wrote: »

If you are using/needing to keep the £6k limit with Halifax, that’s fine. Before you lower any limits, how much do you owe on the BA and MBNA cards?

You are lucky your salary discrepancies haven’t landed you on the CIFAS register / National Hunter database.

SeduLOUs is giving some very good advice, you should listen to it.

Yes, these were not big discrepancies and were very reasonable but I would try to be more accurate next time.
You're asking how much I own on the BA and the MBNA cards? The answer is 0 GBP, nothing.

So just call both BA and MBNA and ask them to reduce the limits right away? Is it a good step in your opinion? Thanks for all the advice so far by the way.

jumperabv3

SeduLOUs wrote: »

It would be my guess yes, but that's the only guarantee I can give.

Every lender is different and every lender has their own secret criteria, so we can only best guess the best course of action in the long run.

On that basis, only reduce the limits to what you can manage with - don't reduce a limit that you need and be dependent on an application being successful if that makes sense?

I presume you know about the eligibility checker? You can do a 'soft' application (i.e. no footprint on your file) which will give you chance of success as a percentage for obtaining most high street cards. It's been fairly accurate in my personal experience, so always worth going there first when researching card to find which you are most likely to be accepted for.

Thanks for the advice.
NO, I haven't heard of the "eligibility checker" - I tried to google it but got confused - what's the URL to use it please? I would like to try it only for credit cards.

MallyGirl

https://www.moneysavingexpert.com/eligibility/credit-cards/

Candyapple

Experian, Equifax and Call Credit. Those are the 3 credit reference agencies that you need a copy of your report from.

MSE have an eligibility checker, however it is well known to be rather hit and miss. However, most lenders offer their own on their websites, eg here is MBNA's:
https://apply.mbna.co.uk/UKNeoCCapp/entry?sc=1OCMCEVIMD005AE&mc=OCMCEV0070M&_ga=1.50915049.1767360398.1444216406

MSE:
https://www.moneysavingexpert.com/eligibility/credit-cards/


Regarding electoral roll, you need to write to the CRA's. Send your letter via recorded delivery and attach a copy of the letter from the council. If you don't hear anything back within a certain timeframe (you'll have to Google it) then you can refer your complaint to the ICO.

If you have a 0 balance on the cards then yes it is probably a good idea to reduce your limits. I probably wouldn't go as drastic as £2k, maybe £3k and £4k as future lenders like to see large(ish) limits with low credit utilisation as it shows you can be responsible with credit.

So you should now;
1. Reduce your card limits
2. Cancel your overdrafts if you aren't using them
3. Get your electoral roll status sorted
4. STOP APPLYING FOR ANYTHING FOR AT LEAST 6 MONTHS!

jumperabv3

Candyapple wrote: »

Experian, Equifax and Call Credit. Those are the 3 credit reference agencies that you need a copy of your report from.

MSE have an eligibility checker, however it is well known to be rather hit and miss. However, most lenders offer their own on their websites, eg here is MBNA's:
https://apply.mbna.co.uk/UKNeoCCapp/entry?sc=1OCMCEVIMD005AE&mc=OCMCEV0070M&_ga=1.50915049.1767360398.1444216406

MSE:
https://www.moneysavingexpert.com/eligibility/credit-cards/


Regarding electoral roll, you need to write to the CRA's. Send your letter via recorded delivery and attach a copy of the letter from the council. If you don't hear anything back within a certain timeframe (you'll have to Google it) then you can refer your complaint to the ICO.

If you have a 0 balance on the cards then yes it is probably a good idea to reduce your limits. I probably wouldn't go as drastic as £2k, maybe £3k and £4k as future lenders like to see large(ish) limits with low credit utilisation as it shows you can be responsible with credit.

So you should now;
1. Reduce your card limits
2. Cancel your overdrafts if you aren't using them
3. Get your electoral roll status sorted
4. STOP APPLYING FOR ANYTHING FOR AT LEAST 6 MONTHS!

Thanks for all your help!
I would follow these steps.
I might need to keep the Overdraft facility with Halifax, I do use it from time to time, rarely, but it's useful, so I don't think I would cancel it, it won't do big harm, isn't it?

Yes, Step (4) is the most difficult one for me I think :D:D I would try to do that.

I also tried the MBNA tool with the link above ... unfortunately I get an immediate decline ... I remember just using it 2 days ago and it was fine - so probably it was my stupidity that I applied after having a declined loan on the 25th of August as well as large limits which I would reduce as you say to 3-4k GBP not to be drastic neither ... yes, it all explains everything now ... just the LONG WAIT is painful.

:eek:

Thanks though.

DCFC79

jumperabv3 wrote: »

Thanks for this advice ... can I ask if the credit score would go lower initially if I reduce the credit limit but after let's say 6-12 months it should go back up again if all is well?

And would you lower the limit on all of the 3 cards?

Thanks again.

Don't worry about the score, your history is whats more important.
Lenders can't see it so don't use it.