Credit card rejection despite 80% likelihood of acceptance

Silex1815

Hi, 

I just applied for a Barclaycard credit card and was rejected. I did an Experian credit check which shows I have a good credit score and suggested this credit card. I was just wondering if anyone had any thoughts about why I might have been rejected? This is my first credit card and I have no debt. I am just a bit perplexed, any thoughts would be appreciated. 

Thanks  

bradders1983

The credit score is meaningless. Look at the data on the file, not the pretty three digit score they make up for marketing purposes and that no lender has access to.

Any defaults on there? Late payments? High credit card utilisation? Electoral roll info correct etc.....?

danthemoneysavingman

Hard to say, but 80% acceptance means you're in the 20%. Maybe because you've no prior credit card experience but anyone would only be guessing, depends not only on their risk appetite but multiple other factors.
You may want to start with a credit profile building card, there are articles on this site about how to get started.
hth

cymruchris

80 percent likelihood is a fair chance of being accepted - but that's 8 in 10 - or 80 in 100 - or 800 in 1000. so for every 1000 people who apply with similar circumstances to you -  around 200 are rejected - you're one of those 200 people. If you're using the eligibility checker of Experian or any other external company like Credit Karma - Totally money etc. their data is based on guesswork data to the best of their knowledge -for every 1000 of their customers that had similar circumstances to you  - 800 were accepted - 200 were rejected.

If you go through the direct website of any credit card provider - i.e. Barclaycard direct eligibility checker, you are being checked more accurately - and are likely to get a decision in principle based on their own criteria against the data on your file - and so can be a more accurate way to see if you're eligible for a card. Even in the circumstance where they say you are 'Highly likely to be approved' or even 'Pre-approved' or even 'Accepted' you can still be rejected if during the full application they find some nasty lurking on your credit files - so that brings us to yours - do you have anything negative currently on file? CCJ? Default? Late payment? High continuous credit card balance? 

wiseonesomeofthetime

Silex1815 said:

This is my first credit card and I have no debt. 

As suggested in the above post, I think this could be the main factor.

With little or no record of how you manage debt, Barclaycard have not been assured that you would be able to repay whatever you build on your card.

[Deleted User]

Barclays are being very careful about lending at the moment, as are most other banks. 

Silex1815

I have just had a more detailed look at the credit report. The only negative on there is that I am not on the electoral roll. I have just moved house and gotten a new job (<1 month). I have no outstanding payments. No late payments are listed, I know that for some direct debits some payments didn't go through because I changed my card and forgot (I have a habit of losing/breaking cards), but were settled up very quickly. 

Would your advice be to wait to apply for another card? And potentially apply for a different type of card? I wanted a purchase card so I could make a one-of-large purchase, hence 0% APR. 

Having been rejected I am assuming my credit score will be affected? Do you know if this will automatically update on something like Experian? 

Thank you for all of your advice so far!  

bradders1983

Apply for a Vanquis or Aqua card (sub-prime), neither have this offer though as far as I am aware.
0% deal cards are going to be harder to get merely because of this offer.

[Deleted User]

Your credit score remains meaningless. Your file just shows a search.

Your chances of a 0% card are very low with such a thin/patchy history.

Get in the ER, apply for a sub prime card. After a few months, try for a second card.  In a year or so, getting 0% cards should be a possibility.

Also remember to check all three files, not just one 

femalemonarchfemalecanine

The only time I've ever been turned down for a credit card was just after I moved house. I rang the company to ask why and they said it was because I'd moved house [2nd time I'd moved house in 40+ years]. Just get on the electoral register at your new address, handle any credit you've got responsibly, and try again in a few months time - as zx81 says, if you don't have much credit history try for a sub prime card.

danthemoneysavingman

Not being on the electoral roll always used to be a policy decline. No doubt still is. That will be the reason.

Once this is sorted and reflected at the bureaux, you will have an easier time getting a card..