Newbie: first disappointment for CC refusal

Enzo76

Hi, new member of the forum here, but I have been reading MSE advices for the past couple of years.
Last year I opened a Sainsbury's 0% CC, I have used it, repaid always more than the minimum (i.e. about 100-150£/month), now the promotion period is about to end so I decided I wanted to transfer the remaining balance (about 1900£) to a new 0% card. My score on the MSE "club" app is 952/999, so I picked a Virgin Money card that was showing as 90% approval in my situation, and I have applied last week.
I was being to honest (or stupid?) when filling the questionnaire, since I answered "Yes" to the question about me knowing if something is about to happen that will reduce my income: I am expecting my first child next month and my wife is going in maternity leave - there was no point telling a lie about it!
Anyway, my application has been rejected today and I suspect that was the reason. I am very disappointed and annoyed by this, because it would have been beneficial to have at least more room to add details instead of a vague question about income reduction, such as: by how much do you think your income will be reduced? It annoys me (sorry repeating this word - but I suppose the stonger words I have in my mind now will me moderated in the forum), because this system does not seem to reward you if you save and if you repay....and does not reward providing truthful details in applications. Plus I suppose now my score will drop - I am curious to see by how much.
Now my question: should I try to apply for a new card from a different provider (somehow "forgetting" that I have an 8-month pregnant wife....)?
I am afraid that would lead to another rejection, so I am strongly leaning towards using my saving to just close the current credit card and stop using CCs for a while....
Any suggestion appreciated!
Thanks
E.

2021BJ

My suggestion is you answer any questions truthfully.  Unless you want a CIFAS marker that is.

Enzo76

2021BJ said:

My suggestion is you answer any questions truthfully.  Unless you want a CIFAS marker that is.

Thanks, that's exactly my thought, that's how I was brought up (also same when I had to apply for life insurance)

I forgot to add to the picture: I also have another CC, Barclaycard, I have had it for more than 6 years (connected to my first bank account when I moved over to UK - and at that time I did not even apply, it was the bank to suggest if I wanted it...), and I have always repaid that in full (except maybe a couple of months more than 3 years ago - a mistake I won't repeat since the interest rate is not cheap). So I was assuming I was a good potential customer for Virgin!
PS: sorry about the rant!

2021BJ

Enzo76 said:

2021BJ said:

My suggestion is you answer any questions truthfully.  Unless you want a CIFAS marker that is.

Thanks, that's exactly my thought, that's how I was brought up (also same when I had to apply for life insurance)

I forgot to add to the picture: I also have another CC, Barclaycard, I have had it for more than 6 years (connected to my first bank account when I moved over to UK - and at that time I did not even apply, it was the bank to suggest if I wanted it...), and I have always repaid that in full (except maybe a couple of months more than 3 years ago - a mistake I won't repeat since the interest rate is not cheap). So I was assuming I was a good potential customer for Virgin!
PS: sorry about the rant!

You might have been, but they're obviously (and justifiably) uneasy lending to someone who is going to have a drop in income.  Not least because I suspect if they didn't do this, there would be a new reclaim bandwagon for everyone to jump on in a few years.

With all due respect, you should have budgeted to clear the card by the end of the 0% deal.  The date was not a surprise and there is never a guarantee you'll be able to hop from one 0% deal to another, global pandemic or not.

Enzo76

2021BJ said:

With all due respect, you should have budgeted to clear the card by the end of the 0% deal.  The date was not a surprise and there is never a guarantee you'll be able to hop from one 0% deal to another, global pandemic or not.

I agree - lesson learned I guess

cymruchris

What you don't want to do is to start applying here there and everywhere for credit cards - multiple searches will make you look desperate and lead to auto-declines no matter how good you're history might be. The decrease in income would make you a bigger risk to lenders, although you might be very comfortable with the fact that you'll manage just fine. 

If you're not able to get a mainstream card like Virgin - then you could try one of the sub-prime cards that would likely give you a lower credit limit, and a shorter interest free period - but might be a way to save a few pounds. Try the eligibility checkers for Vanquis, Aqua, Capital One and see what they say. (You might have to check which one is offering a balance transfer option) They tend only to be for 4-9 months though - so it would give you a little breathing space - but you'd need to clear the debt asap - as these cards go to 'silly-interest' once the interest free period is up.  

alfred64

I think you answered incorrectly. Your income is not going to be reduced, although total household income may be less.
Virgin interpreted it as though you will be be working less hours, on furlough or an imminent pay cut.

2021BJ

alfred64 said:

I think you answered incorrectly. Your income is not going to be reduced, although total household income may be less.
Virgin interpreted it as though you will be be working less hours, on furlough or an imminent pay cut.

Possibly, although changing the answer runs the risk of getting flagged with NH.

Probably best to not risk it, even if they're not actually lying.

Enzo76

alfred64 said:

I think you answered incorrectly. Your income is not going to be reduced, although total household income may be less.
Virgin interpreted it as though you will be be working less hours, on furlough or an imminent pay cut.

I thought about that possibility - now that you ask me, I am not sure about what was the exact question on the form (if it was my own income or the household). Disappointing is the fact that there was no way to review my answers, no summary received via email, nothing of that sort, and the fact that if I want clarifications about it, only a postal address was provided (no inquiries via email or call center apparently)
Anyway I'm not going to risk it and I'll wait, it's not urgent for now. Thanks everyone for your answers.

yksi

It's your income, as far as I'm concerned. If it was dual income it would have used the phrase "household income" or "yours and your partners' incomes".

Forget Virgin, I personally would put in one more application to another card high on your list with a good chance of acceptance. If this is also declined, consider asking your own bank for a personal loan. Nationwide gave me one which was a quarter of my CC interest rate; TSB offered me one at 29.9%. You can guess which one I gave a hard pass

adamp87

yksi said:

It's your income, as far as I'm concerned. If it was dual income it would have used the phrase "household income" or "yours and your partners' incomes".

Forget Virgin, I personally would put in one more application to another card high on your list with a good chance of acceptance. If this is also declined, consider asking your own bank for a personal loan. Nationwide gave me one which was a quarter of my CC interest rate; TSB offered me one at 29.9%. You can guess which one I gave a hard pass

I wouldn't advise 3 hard searches in such a short space of time, smacks of being desperate for credit I'd imagine.

I'd look at another card then wait at least 6 months before any other application personally