SBT cards - not MBNA

al86

hi there,

I applied for a Virgin card last weekend, and today received a letter declining my application, doesnt give any reasoning for it.
I really cannot understand it, I have a barclaycard with 7k limit and another for business with 7k limit, each with approx 2k balance on them.
I am 56 years old and with a good credit history.

Could it be possible that they have declined me because I have an un-used MBNA card here?
One I got whilst walking around shopping, I stupidly applied for and never used. I know that Virgin are part of MBNA so would this have stopped the application?

Anyway, what can I do now? I need a credit card capable of SBT's preferably with 0%. One which I am going to get accepted for!

Thanks for your help in advance!
Chris

Clariman

It is possible that MBNA/Virgin have declined you because you have an unused one already, but difficult to say for certain. MBNA certainly used to be happy about customers having up to 3 MBNA-variant cards but I think they are tightening up on it. Also, they may see that you have never used your existing card, so what need could you have for another, although I doubt their systems are that sophisticated. What credit limit did you MBNA card have ? Don't forget that lenders looks to see what available credit you have as well as how much debt you actually have, so it could be a factor.

If I were you I would

1. Close the MBNA card and re-apply for another MBNA card in 6 months time (possibly earlier).
2. Look at the Egg card for SBTs. They now charge for BTs (max £50) but it could still be worth it depending on what credit limit you get.
3. Also investigate MINT and other Royal Bank cards. MINT used to provide cheques which were interest free and charge free during the intro period. They may still do so.

Clariman

Chadsman

That sounds like the most likely reason. Try ringing them to ask why. I was recently in a similar situation with MBNA but after three letters I did get them to give me a new card with 0% for 6 months
Depending on what they say it may be worth getting hold of your credit record and checking there is nothing untoward on there.
I have copies of the letters somewhere. pm me if you would like copies.
HTH

Stonk

It was almost certainly your other MBNA card, particularly if you don't use it.

A couple of months ago I was refused a Virgin card - they said the only reason was that I already had an MBNA card. I suspect if I had used that other card a bit more they may have let me in. I inquired about cancelling the MBNA card and reapplying, and they said you have to have been a non-MBNA-holder for 6 months.

MrChips

I had a similar issue with MBNA. I got an A&L credit card (run by MBNA) when I opened my current account with them. About 6 months later (in Feb 2005) I decided to apply for the Conran card that Martin recommends in his cashback article. This is also run by MBNA and I was quite surprised when I was turned down. The rejection letter wasn't very specific as to the reason why but did say "Your application review...takes into consideration all available information...including a review of your current MBNA account. As a result we are unable to extend your credit facilities at this time".

Bit annoying really as I was hoping to use this card to replace the A&L one as the cashback on it is a measly 0.5%.

I have very recently phoned A&L asking them to reduce my credit limit from £5000 to £1000, and am going to reapply for Conran in the hope that they should be prepared to offer me at least £4000 more credit now!