Pre approved for a Virgin credit card - then declined

MuswellHillean

About 3 years ago, I went through some financial difficulties, and ended up with 2 defaults on my credit file from British Gas. Since then, my situation is much improved, and I haven't missed a payment of any sort in 3 years, paid off all my loans, and pay my one credit card ever month in full. My credit score on both experian and equifax has gone up to an 'excellent' score. 
On ClearScore I was recently given a 100% chance of getting a Virgin credit card - this had a decent 12 month interest free purchase offer on it - I applied, and after 2 days was told I was declined. Now I have a hard search on my file. Assuming that it was the defaults that did it (which would not have shown on ClearScores 'soft search' - do I need to wait another 3 years to apply for any kind of decent credit? Or is there no hard or fast rule on this? 
Thanks

[Deleted User]

You can usually do a couple (no more) within a few months and then should wait around 6. Try for one of the sub-prime cards like Cap One or maybe Barclays

sleepyjones

One hard search isn't going to cause any issues, just don't apply for too much in a short period of time.
If you see a good deal on the Clearscore eligibility checker, try and do an check on the actual site (ie if Clearscore says 100% for Virgin Money, then go to the Virgin Money site and do a check there (if they have it)).

Having 2 defaults on your file from 3 years ago might be a stretch with the mainstream lenders though?  (maybe get a barclaycard but you won't get a £3k limit or anything like that)

2021BJ

MuswellHillean said:

 do I need to wait another 3 years to apply for any kind of decent credit? Or is there no hard or fast rule on this? 
Thanks

If by decent you mean prime lending then yes.  Prime lenders won't touch you with a default on your file.

[Deleted User]

I would recommend waiting till the 3 years are up as you won’t be able to get any decent credit cards or any 0% credit cards and with the credit score, lenders don’t actually usually look at your credit score as it’s quite meaningless as lenders usually check if you are going to pay the money back so they’ll check your public records such as defaults, ccj, bankruptcy and how well you managed your other cards such as payment history and if your paying back on time with no missed or late payments

MuswellHillean

Thanks all - useful to know re mainstream lending/defaults as I will avoid those applications until they drop off my file. Would they still affect me if the defaults were 5 years old?

cymruchris

Just to emphasise - do the eligibility checks directly on lenders own websites - don’t rely on comparison sites - they work in a different way. Only the credit card company themselves know exactly what kind of customer they want - the cra’s are just guessing based on their own data. 

2021BJ

MuswellHillean said:

Thanks all - useful to know re mainstream lending/defaults as I will avoid those applications until they drop off my file. Would they still affect me if the defaults were 5 years old?

Yes, mainstream lenders (with mainstream products) aren't interested in subprime lending.

callum9999

2021BJ said:

MuswellHillean said:

 do I need to wait another 3 years to apply for any kind of decent credit? Or is there no hard or fast rule on this? 
Thanks

If by decent you mean prime lending then yes.  Prime lenders won't touch you with a default on your file.

I was accepted for a Virgin Atlantic credit card 2 years after a default, and an Amex and MBNA only a year after...

The_Real_Cheddar_Bob

You might find that even with the eligibility checker, when you actually apply they may decide that they don't need any further new customers that day/time. Call them and speak to the credit card team 

2021BJ

callum9999 said:

2021BJ said:

MuswellHillean said:

 do I need to wait another 3 years to apply for any kind of decent credit? Or is there no hard or fast rule on this? 
Thanks

If by decent you mean prime lending then yes.  Prime lenders won't touch you with a default on your file.

I was accepted for a Virgin Atlantic credit card 2 years after a default, and an Amex and MBNA only a year after...

Doubt it.