Declined on all credit card applications

Emma3535

Hi all first post,

I have been trying to get a credit card with a decent APR and cash back but I am getting declined left right and centre from Halifax, Amex, MBNA, Natwest, .....

I have no adverse credit history whatsoever I currently have two unsecured loans that I have never missed a payment on and have little time on them left. As I wasn't being accepted for more mainstream Prime Lenders I applied for a credit builder card from capital one and was given a initial £500 credit limit (now increased to £750 after 7 months) I have used the card up to its limit but always stayed within the limit and pay my balance in full and have never incurred interest on the account. I currently have a 4/5 noodle rating and a 767/999. I also have had PayPal credit with a £600 limit and have never used it though. I have held the two credit cards for over 9 months and do not see much reflection in my credit rating as well as how lenders are assessing me. Why am I being declined? I have history of managing credit, I have a income that more than meets requirements and have been on the electoral roll for over 10 years?

marksoton

You need to get copies of your credit reports, ignore the scores these companies give.

Applying with someone like Amex on the sort of figures you give is unlikely to result in a positive outcome.

You now also need to take a break before any further applications.

dktreesea

It partly depends on who your two unsecured loans are with. If they are with high interest high street lenders alike Wonga, a mainstream bank will downgrade your application.


Applying to a large number of credit card providers at once will also cause a downgrade in your application.


Oddly, while this seems counter intuitive, paying off the cards you have in full every month can also downgrade your credit score within the bank's internal systems.


I would suggest your first port of call to get a credit card should be with whichever bank receives your salary every month. If they say you are not eligible for a credit card, that's rubbish. Take your business elsewhere. When you approach a potential new bank, ask them exactly what package they would be able to offer you.


You should be able to get a fee free overdraft limit, a credit card with a reasonable limit on it, an ISA savings account with a reasonable interest rate, - ours pays 1.8% which is reasonable given the current low BofE base rate - as a minimum.


Remember, you are the bank's client, not the other way around. It's not up to you to have to beg for them to give you what you need credit wise; instead they should be wooing your business by offering you credit.


With your current two unsecured loans, if they are at high interest rates, also discuss taking out an unsecured loan to cover them.


People with solid, permanent incomes should not have to rely on high interest credit to meet their credit needs.

Emma3535

My two unsecured loans are with my banks Loyds and Barclays at very low APR's which I'm happy with. but Loyds won't give me a card and my Barclaycard application got referred and I never got a reply. I also have a £900 overdraft that I don't really use.

ossie

There has to be a reason why your own bank Lloyds will not let let you have a credit card. There is more to this story than you are letting on.

[Deleted User]

What's your income and how much were the two loans for?

Emma3535

My income is 71,000 after tax one loan was 4,000 half paid and loyds was 3,000, 1,400 left. I previously had no credit cards before I got the credit builder it was my first card but surely after 9 months I can move onto something with a lower apr incase I want to carry over a balance and cash back for all the purchases i'm making?

marksoton

Emma3535 wrote: »

My income is 71,000 after tax one loan was 4,000 half paid and loyds was 3,000, 1,400 left. I previously had no credit cards before I got the credit builder it was my first card but surely after 9 months I can move onto something with a lower apr incase I want to carry over a balance and cash back for all the purchases i'm making?

£71K?!

Are you sure...?

You say little time left but both loans are only half paid....

[Deleted User]

There's something on your credit reports. Have you checked the detail of all three?

Ignore the scores - they mean nothing - you can be dead and bankrupt and still get a 999 score.

Emma3535

I have checked all my reports with all the credit reference agencys and didn't find anything wrong with them. Some time has passed since the searches but Credit Expert still says that the amount of searches is impacting negatively,

[Deleted User]

The only thing I can imagine is the fact that you are running two fairly low value loans compared to your income, which suggests you have no savings.

That may be raising concerns with lenders.