Advice needed

Joshua88

Hello,

So a little advice needed. I have no history of bad debt (no loans, credit card, overdraft, finance etc) so recently was surprised to see my application for a credit card with Barclays turned down. I applied for a platinum cashback reward card and experian was indicating a 95% chance for approval.

Using experians credit expert I found out that I have 4 accounts of credit all paid off fully, phone & three bank accounts (2 current, 1 savings).

Any idea what I could be doing wrong?

[Deleted User]

Do you have any current credit history, or just a bunch of closed accounts?

Other factors will include income, ER, time at address, available limits, and of course, lender risk and targeting preferences.

Have you checked all three files?

Joshua88

Hi, well I'm new to this sort of thing but I just have the 3 bank accounts and a mobile phone contract which it has shown for 8 years and I've never missed a payment. The other 3 bank accounts I use to separate earnings so I put 18k a year in each. I also have lived at the same address (rented) for 10+ years.

Thanks for the quick reply

Ben8282

Do you currently hold or have you ever held a credit card?

[Deleted User]

Joshua88 wrote: »

Hi, well I'm new to this sort of thing but I just have the 3 bank accounts and a mobile phone contract

A lack of credit history looks to be the obvious suspect. You may need to start a little lower down the ladder - get any card (your own bank or sub prime) and build up some history.

The reward cards can come later.

Joshua88

I suspected as much. Thanks for the advice. I've always bought most things outright with savings and have never had to have a credit card but would like to make my score a little higher.

[Deleted User]

Always ignore the score - it's not a real thing and doesn't react as you expect it to.

Just concentrate on the credit behaviour you demonstrate, as that's what lenders look at.

Joshua88

Right okay, I am often offered credit cards from my banks but maybe aimed a little higher with the rewards and chose the Barclays one (I don't bank with Barclays).

Ben8282

Joshua88 wrote: »

Right okay, I am often offered credit cards from my banks but maybe aimed a little higher with the rewards and chose the Barclays one (I don't bank with Barclays).

Accept the credit cards that you are offered by your banks. Use them and repay in full each month. Build a history with credit cards THEN apply for a rewards card.
It is unlikely that the card you applied for would be given to a person with no history of using credit cards.

gionnetto

Joshua88 wrote: »

I suspected as much. Thanks for the advice. I've always bought most things outright with savings and have never had to have a credit card but would like to make my score a little higher.

Best strategy would be, check the eligibility calculators and apply for cards you are pre-approved for IF they offer you something better than the cards your bank offers you.

Keep in mind that, contrary to popular belief, earning a substantial amount of money and having savings aren't necessarily related to how you might use (or misuse) the credit you are given. If you were never issued a credit card before, you might want to start from sub-prime lenders. In all likelihood, they'll give you a higher limit than their average clients (because your income is not an issue), but a high APR (because you are new to credit). It won't be a problem for you, as long as you paid the card off in full every month.