Good finances - rejected for credit card?!

ITKnight

Hi all,

Just joined here as I need some advice. I applied for a Capital One cashback credit card a week ago and have received a letter this mroning saying I had been rejected but could appeal...

I have an excellent financial history - have paid off all my debts apart from the mortgage and my student loan - both of which I make payments on every month and have never defaulted on.

I have an existing credit card, which I pay off in full every month - which I suspect is the reason why they've rejected me! I also have a joint mortgage with my fiancee and whilst we've never missed a payment, she has been charged for going over her overdraft limit in the past. Would this be enough for a rejection?

It hardly seems fair that you get punished for NOT getting yourself into debt! What are my chances if I appeal against Capital One's decision? Also, what am I supposed to do with regards to changing credit cards - am I stuck with my existing one forever just because I don't get myself into debt?

Any advice appreciated!

- Gord

YorkshireBoy

Do you meet Capital One's definition of an "excellent credit history" (which this particular card requires)?...

• I have a credit card with a credit limit of at least £5000
• I have had a credit card(s) for at least 5 years
• I have never missed more than 2 payments on a credit card or loan
• I have credit card balances of less than £10,000
• I don't have any previous credit defaults (CCJs, current arrears)

Moggles_2

Originally Posted by ITKnight
I have an existing credit card, which I pay off in full every month - which I suspect is the reason why they've rejected me! ... It hardly seems fair that you get punished for NOT getting yourself into debt!

I would keep an open mind about the reasons you were unsuccessful. There are any number of reasons why a given lender may refuse to extend credit.

Have you checked your credit reports lately? (For help, see the *How to obtain credit reports* sticky.) This is the information UK lenders see when you apply for a new credit card. Those searching your file can tell that you have paid up on time each month. They can also assess your credit - available and used - in relation to your annual income. What they cannot know is whether you routinely make minimum payments or settle your bills in full, as only the rolling balance(s) are shown.

ITKnight

YorkshireBoy wrote: »

Do you meet Capital One's definition of an "excellent credit history" (which this particular card requires)?...

Aha! I checked the terms but missed the 'credit limit of at least £5000', which is the only condition I don't meet. I'd never come anywhere near to using such a limit and was only interested in the cashback anyway so stuff them, quite frankly! :rotfl:

I haven't checked my credit reports - if I get turned down for anything else I might take a look but I'm not going to worry over one credit card app. There shouldn't be anything negative on there anyway - so, like I say, something to worry about maybe if it happens again.

Thanks for the advice

- Gord

mikki-b

ITknight,
I, like you, was refused initially, despite having what I thought was an excellent credit rating. (I didn't have a credit card limit of over £5000 pounds on one card but had £7000 limit over that across 2 cards, but I've not asked for it to be increased) My husband applied and was accpeted straight away. He has only the one credit card.
I appealed and they phoned me up, asked a few questions (total household income, what I would use the card for) Few days later got a letter saying I was accepted.
Its worth appealing. State all the cards you have, credit limits, that you have never been late paying them, never defaulted (if thats true of course) details of loans mortgages etc, whatever you think will improve your rating when a real person reads it.
Failing that get an egg money card instead.
Mikk