Barclaycard rejection 9 March at 5:33PM in Credit cards 4 replies 425 views

kellan

I feel so shocked and naive but I applied for the Barclaycard offering 0% credit that's ranked highly on MSE, and despite being pre-approved and then told I was actually approved, and then receiving the card and the PIN and setting up online banking... they've now told me they've changed their lending criteria and they have declined my application.

That's their right I know, but now I've presumably got a hard check on my credit history and nothing to show for it. I know I shouldn't reapply for anything else soon because that looks desperate - so it feels like not only do they not want me but now I shouldn't even go to anyone else. And I just wish they hadn't actually sent me the physical card and made me set up the online banking. It really feels like the rug being pulled out from under me.

Also I can't help but worry if "changing their criteria" etc is a euphemism and there's something unattractive about my credit record that I didn't realise. 

I have a small amount of debt in the form of a personal loan which I'm paying back, but I have much more in cash reserves than the value of the loan so it doesn't really "feel" like debt; and I have an overdraft I've never used. My income is middling but steady; I thought I was exactly the sort of person they would want as a customer.

Any advice or helpful comments would be appreciated. I feel sad, and worried. 

JGB1955

kellan said:

Also I can't help but worry if "changing their criteria" etc is a euphemism and there's something unattractive about my credit record that I didn't realise. 

Are you on the electoral roll?  Do you have existing credit agreements - mobile phone, HP etc etc?  Do you have other credit cards and pay them off in full (or at least slightly above the minimum) every month?  If not, you're a bit of an 'unknown' risk.

kellan

JGB1955 said:

kellan said:

Also I can't help but worry if "changing their criteria" etc is a euphemism and there's something unattractive about my credit record that I didn't realise. 

Are you on the electoral roll?  Do you have existing credit agreements - mobile phone, HP etc etc?  Do you have other credit cards and pay them off in full (or at least slightly above the minimum) every month?  If not, you're a bit of an 'unknown' risk.

I am on the electoral roll, and I have one other credit card which I do pay off in full every month. I don't have any other credit arrangements such as related to my phone (what's HP?), just what I already said: a small personal loan on a DD and an overdraft I've never touched. 

I've been trying to make myself into someone reasonably attractive for a mortgage in the next two-three years and this just makes me feel like I've not been doing nearly as well as I had hoped.

Maybe they have actually changed the lending criteria but I can't help but feel paranoid. Rejection sucks

Marchitiello

kellan said:

JGB1955 said:

kellan said:

Also I can't help but worry if "changing their criteria" etc is a euphemism and there's something unattractive about my credit record that I didn't realise. 

Are you on the electoral roll?  Do you have existing credit agreements - mobile phone, HP etc etc?  Do you have other credit cards and pay them off in full (or at least slightly above the minimum) every month?  If not, you're a bit of an 'unknown' risk.

I am on the electoral roll, and I have one other credit card which I do pay off in full every month. I don't have any other credit arrangements such as related to my phone (what's HP?), just what I already said: a small personal loan on a DD and an overdraft I've never touched. 

I've been trying to make myself into someone reasonably attractive for a mortgage in the next two-three years and this just makes me feel like I've not been doing nearly as well as I had hoped.

Maybe they have actually changed the lending criteria but I can't help but feel paranoid. Rejection sucks

To me it sounds like your application has been picked for a manual review by the underwriters and the decision was changed. You can actually formally appeal (providing copy of payslips, saving etc) which could trigger a further review but have no rights to anything further if they stick by that decision.

I am sure you know that the whole “credit profile” system take 0 account of how much you have in saving as they can only see outstanding debts vs declared/verified income. 

The only provider that I know to proactively ask you for proof of saving/cash reserves is Amex with their Chargecard product, when a customer may want to use it for a  large purchase and want to ensure this is authorised. 

cymruchris

Have you analsyed your credit reference agency reports for accuracy? All three of the major ones? To make sure the correct names, addresses, accounts, electoral roll info etc is absolutely accurate? Have you also made sure that there's no negative info on these files including things like CCJ's? (And yes you might not think you have a CCJ but they can sneak up on you in some circumstances where paperwork goes to a wrong address, or someone else with a similar name results in you getting their CCJ - both very rare - but possible).

Go through each and every report with a fine toothcomb - and if after doing so, everything is absolutely accurate, then you could try a manual appeal. It's unusual for a card provider to change their mind after issuing a card - but from what I've read previously it tends to happen when further info comes to light through your application process (such as a fraud marker on CIFAS).