Good credit score and report but turned down for MBNA credit card?

Christian_Hilton

First timer hoping that someone can help. I applied for an MBNA All Round Card (balance transfer and payment) and was unexpectedly turned down. My Experian score is 996 with no 0 score factors and Equifax is 509 (37% credit utilisation, good repayment conduct but 3 credit searches in last 12 months). I applied for a First Direct account at the beginning of the year, this was accepted but I had to chase them up at least three times for the paperwork, each time I was assured that it would be in the post within 48 hours. Eventually, in April, I was told that no one had actioned the process, that they were very sorry and that it could affect my credit ratings! I decided not to proceed with switching to First Direct as I had lost faith. Is there anything I can do?

Chrysalis

I cannot tell you why MBNA turned you down, each company has its own policies.

But the following may be factors.

Length of time at current address and previous addresses
Longest financial relationship without problems.
Existing credit, terms, missed payments and utilisation levels.
Employment status
Accommodation costs
Electrol roll status
CCJ's bankruptcy
History with MBNA and its partners.

Christian_Hilton

Thank you for your reply but none of the factors you mention are an issue; I've lived at my current address for 2 years and address before that for 12 years, haven't had financial problems, in full time employmet, live at home with my parents rent free, on the electoral roll and have one other card with MBNA with all payments up to date.

System

In full time employment, live at home rent free and 37% credit utilisation? Doesn't look that good, you should have a load of money.

Chrysalis

2 years isnt a very long time.

sourcrates

Your choice of credit card provider is probably more to do with the issue.

MBNA have recently been taken over by Lloyds having been on the brink of going bust.

They will actively be looking for customers who will make them money at this uncertain time, you obviously did not fit there lending criteria.

Christian_Hilton

Taken on board but lived at previous address for 12 years with no problems.

Christian_Hilton

Thank you. Possibly naive but thought that if I already had a card with them it would be taken into account.

Christian_Hilton

Not quite sure what you are getting at but yes, I have savings in various places, just wanted a 0% credit card with a small balance transfer.

Christian_Hilton

Have subsequently spoken to First Direct who apparently carried out 3 credit checks. They have admitted their error, apologised, logged a complaint and are looking into removing the credit checks; all will be in writing within the next week. Thank you everyone for your help and advice.

DCFC79

Your score despite being all good has no bearing on loans etc, no 1 else can see it, they see the credit history.

A good example why the score isn't to be entirely trusted.