Rejected card application, how to solve?

Jamopy

I've never had a credit card before but often rent cars and these days most places are demanding credit cards instead of debit cards. I'm a nationwide user and am eligible for their "select" card which offers a 12 months 0% interest introductory offer if you pass their criteria (I do).

So i logged into experian and checked my score on there and it is 890+. I logged into my Nationwide online banking and made the application and... was rejected. No explanation as to why, only a pop up telling me they will be writing to me to confirm this.

I looked on the MSE main site and tried joining the credit builder club to see if that could shed any light and... was told again that they couldn't identify me with experian. Despite all my details being the same in both applications.

What's going on here and will this leave a bad mark on my credit history? What do i do next?

Willing2Learn

You would be unlikely to meet the Nationwide credit scoring criteria as you have a limited credit history. You would be seen as a high risk applicant.

Much better, in the first instance, to go for a sub-prime card such as CapitalOne, Aqua, Tesco Foundation, Vanquis etc.

Edit: Are you on the electoral register?

[Deleted User]

Also, rejections don't show on your credit file.

Don't forget to ignore your Experian credit score.

eskbanker

Jamopy wrote: »

What's going on here

Nationwide chose not to offer you the card - they're under no obligation to and don't take any notice of Experian's scores, just the underlying data, plus their own risk management criteria and process (which will be more stringent than satisfying the minimum published criteria).

Jamopy wrote: »

will this leave a bad mark on my credit history?

There will be a record of a credit search, not disastrous in itself but you wouldn't want to accumulate too many.

Jamopy wrote: »

What do i do next?

Check the actual data within your credit files, not just Experian but the others too. If you see anything that's factually inaccurate, contact them to get it corrected. Otherwise, take note of their recommendations about how to address any negative factors, and act accordingly.

Then use eligibility checkers such as the MSE one and soft search facilities offered by lenders.

Jamopy

Willing2Learn wrote: »

You would be unlikely to meet the Nationwide credit scoring criteria as you have a limited credit history. You would be seen as a high risk applicant.

Much better, in the first instance, to go for a sub-prime card such as CapitalOne, Aqua, Tesco Foundation, Vanquis etc.

Edit: Are you on the electoral register?

Yes i'm on the electoral register.

And for a very basic card with a £1,000 max spend and the only income requirement being £5,000 pa i thought this was a very low requirement card...

Jamopy

Deleted_User wrote: »

Also, rejections don't show on your credit file.

Don't forget to ignore your Experian credit score.

What's the point of it then? I thought experian was the main place people checked your credit history to decide whether to give you loans, etc.

A4445

Try CapitalOne quick check with tell you if you will be accepted or not.

Willing2Learn

Jamopy wrote: »

Yes i'm on the electoral register.

And for a very basic card with a £1,000 max spend and the only income requirement being £5,000 pa i thought this was a very low requirement card...

Although that is part of their criteria they will also look at risk. The nationwide card will only be issued to low risk applicants.

Jamopy wrote: »

What's the point of it then? I thought experian was the main place people checked your credit history to decide whether to give you loans, etc.

The score is only a representation of how you may be scored and should only be viewed as an indicator. Each credit application is scored independently by the potential creditor and will have to satisfy their individual criteria and requirements.

PixelPound

A4445 wrote: »

Try CapitalOne quick check with tell you if you will be accepted or not.

I was about to suggest the same :T

Some of the subprime cards have the pre approved options that only leave a soft search before make a full application. You can also check likely chance of acceptance on MSE Credit Club, Noddle, Clearscore, etc

Jamopy

Willing2Learn wrote: »

Although that is part of their criteria they will also look at risk. The nationwide card will only be issued to low risk applicants.

So as someone with no debts, no CCJs, a regular income, and this being my only application for credit of any kind, how was i classified as not a low-risk applicant?

I'm trying to pin down specifics that i might be able to work with.

The score is only a representation of how you may be scored and should only be viewed as an indicator. Each credit application is scored independently by the potential creditor and will have to satisfy their individual criteria and requirements.

Again, this is completely vague. Is the experian score meaningful or not?

Willing2Learn

Jamopy wrote: »

So as someone with no debts, no CCJs, a regular income, and this being my only application for credit of any kind, how was i classified as not a low-risk applicant?

I'm trying to pin down specifics that i might be able to work with.

The risk comes from you not having a history of managing credit. For example, you implied in your first post that you managed your money with debit cards and that you hadn't had a credit card before.

Jamopy wrote: »

Again, this is completely vague. Is the experian score meaningful or not?

The score is meaningless in that it is not how the individual creditor will score you, as they will do that themselves, against their own criteria and internal policies.