Rejected for a credit card

Underdo

Hello, im wondering if you guys and gals can help me.

Ive recently applied for the Barclaycard Platinum credit card due to my last credit card ending its 0% interest period.

I dont know why this is the case, ive never been rejected for a card before!

Some information that might be helpful

Credit score is fine.

Was given a 9.5 chance of being accepted for the card on moneysupermarket

No other debts (aside from mortgage that was taken out this year due to buying my first house)

Closed the previous card the same day i applied for this card.

Had a electoral roll confirmation letter come through the door the day after i applied (ive heard that causes issues)

If anyone could help id really appreciate it!

Cheers :beer:

Browntoa

Affordability....

You have taken out a mortgage

Terry_Towelling

Underdo wrote: »

Closed the previous card the same day i applied for this card.

Notwithstanding the ending of the 0% promo rate, why did you do this? Most credit cards are as good as each other in terms of utility, so closing an account because it had suddenly moved to standard interest rates suggests you are someone who will carry a balance forward rather than paying in full each month. By some measures, this may hint that you may have affordability issues.

What percentage of your income is taken up by mortgage repayments and other essential payments that you wouldn't normally put on card? - e.g. council tax, utility bills, insurance policies etc? How does this compare with the same type of outgoings prior to buying your first house?

[Deleted User]

Why did you close the old card?
Ignore your score - it’s not a “thing” used in lending decisions.

MEM62

Your 'score' would have had no impact as that is a randomly generated number produced for entertainment purposes only.

Barclaycard are unlikely to share the reason for rejection with you. I may come down to affordability as some have suggested (Have a look at your overall debt compared to your income as that will give you a clue.) or it may be that you just don't fit their target demographic.

Yellow_mango

My “score” went WAY down overnight when I got a mortgage.

I was wondering whether they are able to take account of the fact it’s a joint mortgage - my file shows the full outstanding balance of the mortgage, and whilst it will show my husband as financially linked through it, I’m guessing they can’t see what his salary is? Which I’m sure makes my affordability look dreadful.

Also, it took several months for my electoral role registration to show on my credit report.

[Deleted User]

Yellow_mango wrote: »

My “score” went WAY down overnight when I got a mortgage.

I was wondering whether they are able to take account of the fact it’s a joint mortgage - my file shows the full outstanding balance of the mortgage, and whilst it will show my husband as financially linked through it, I’m guessing they can’t see what his salary is? Which I’m sure makes my affordability look dreadful.

Also, it took several months for my electoral role registration to show on my credit report.

As above - your score means diddly.

Joint mortgage or not your both responsible for the full amount owing it’s not split 50/50.

Salaries are not reported to credit reference agencies as they are not lenders making decisions.

Yellow_mango

As above - your score means diddly.

Joint mortgage or not your both responsible for the full amount owing it’s not split 50/50.

Salaries are not reported to credit reference agencies as they are not lenders making decisions.

Indeed - which is why I put it in inverted commas.

I suspected that was the case with the mortgage. So being the lower earner on a joint mortgage really does make affordability look ridiculously bad.

And partners salary would also not be requested on application for a personal credit card. So they would have no way of knowing just how much impact that huge mortgage has on personal affordability.

Which could well explain the OPs rejection. But of course we’ll never know the real answer.

Underdo

Browntoa wrote: »

Affordability....

You have taken out a mortgage

This seems to be the most popular reason. Thanks for your help

Underdo

Terry_Towelling wrote: »

Notwithstanding the ending of the 0% promo rate, why did you do this?

What percentage of your income is taken up by mortgage repayments and other essential payments that you wouldn't normally put on card? - e.g. council tax, utility bills, insurance policies etc? How does this compare with the same type of outgoings prior to buying your first house?

Because I already have another credit card for general use. (its paid off in full every month)

The percentage of my income going out for essential payments its just over 30% as an estimate

[Deleted User]

Yellow_mango wrote: »

Indeed - which is why I put it in inverted commas.

I suspected that was the case with the mortgage. So being the lower earner on a joint mortgage really does make affordability look ridiculously bad.

And partners salary would also not be requested on application for a personal credit card. So they would have no way of knowing just how much impact that huge mortgage has on personal affordability.

Which could well explain the OPs rejection. But of course we’ll never know the real answer.

Some applications ask for “other household income”.

Amex do for sure.