Pre-approved on MSE site for credit card but declined??

Bluesgal

Hi everyone!

I have been trying to build my credit score for a number of years. I have a "good" rating with Experian, last time I missed a payment (by only once month) was in July, prior to that there was no record of a missed payment. I am using 70% of my available credit.

I wanted to get a balance transfer card (my current balance transfer card 0% interest expires in March this year) to transfer the balance from 2 card (total of £9,000). I used the eligibility calculator on the MSE site. This gave me 2 pre-approved cards that I was "100%" getting. I clicked to apply and promptly got turned down by MBNA, citing Experian as their credit reference agency.

Has anyone else had this problem? Really gutted now because my credit file will now take a hit and cannot apply again for at least six months.

glentoran99

Bluesgal wrote: »

Hi everyone!

I have been trying to build my credit score for a number of years. I have a "good" rating with Experian, last time I missed a payment (by only once month) was in July, prior to that there was no record of a missed payment. I am using 70% of my available credit.

I wanted to get a balance transfer card (my current balance transfer card 0% interest expires in March this year) to transfer the balance from 2 card (total of £9,000). I used the eligibility calculator on the MSE site. This gave me 2 pre-approved cards that I was "100%" getting. I clicked to apply and promptly got turned down by MBNA, citing Experian as their credit reference agency.

Has anyone else had this problem? Really gutted now because my credit file will now take a hit and cannot apply again for at least six months.

Who are you cards with that have the balance? and Would MSE see your credit utilization?

Bluesgal

Hi, The cards I have the balance on are Nationwide and Lloyds, and presumably MSE would see my credit utilisation as the tool to use states that they would do a soft search on my credit file.

fermi

In that FAQ

https://creditcards.moneysavingexpert.com/?balance-transfer

It’s worth noting that pre-approval is not a cast-iron guarantee that you’ll get the card. In exceptional circumstances you could be declined for other reasons – the bank still has to carry out some checks for identity and fraud purposes, and there’s a very small chance some will fail on these.

Please [EMAIL="creditcardeligibility@moneysavingexpert.com"]feedback[/EMAIL] / [EMAIL="creditcardeligibility@moneysavingexpert.com"]report problems[/EMAIL]

Bluesgal

Yeah I did see that Fermi, but they also stated that if identity and frauds were ok there should be no problem. I also have to say my problem isn't necessarily with the Eligibility Calculator but probably more with MBNA. And there wouldn't be a problem with ID, I have been on the electoral role at my present address for 29 years, 21 years with the same bank.

Candyapple

Chances are the late payment will have badly affected you given it was less than 6 months ago. 0% balance transfer/purchases are usually only given to those with a good credit history and I'm guessing at least no late payment markers for a year (each lender will have their own criteria).

You could also have failed on affordability, if you already owe £9k and wanted to take on more debt, general rule of thumb is usually half your annual salary.

Bluesgal

Thanks for your reply Candyapple, I didn't know about the affordability bit, but that still wouldn't cause a problem, my income is more than twice the amount of debt. The problem I have is that any problems should have been picked up on the soft search and if they had been picked up I would not have applied and got a knock back

john1002

Why not ring them, they might just point you in the direction of why it declined.

Worth a phone call.

Good luck

John

Bluesgal

Thanks John, I did phone them yesterday them and waiting for their call back, she was confused, said if I was pre-approved on this website using their eligibility calculator there shouldn't have been a problem.

Candyapple

john1002 wrote: »

Why not ring them, they might just point you in the direction of why it declined.

Worth a phone call.

Good luck

John

No point in phoning them, their customer service reps won't know why you've been declined, all they can do is refer you to your credit files.

You are either accepted or declined based on the company's individual scoring system criteria, along with what data you hold in your credit reference files. This is done within seconds hence you usually get an approved or declined screen at the end (if credit scoring is live when you apply).

Bluesgal what is so hard to understand? You've already been told that the 'pre-approved' does not mean you are 100% going to be accepted, and also that your late payment marker will have drastically affected your chances - what more do you want to be told?

Also, if you have £9k debt currently and wanted to take out say a loan for a further £9k to clear that debt, you would need to be earning circa £36k otherwise you'd likely fail on affordability.

john1002

I'd disagree I was declined By M&S, rang them and they were very helpful why I was declined, all made sense and I can now wait a while and reapply.

John