Credit Crunch Credit Card Declines?

EmptyCouch

Hi there,

I've been declined twice in the last 2 months for credit cards. First time from Barclaycard (fraud prevention apparently, although I wasn't on the electoral role at the time) and secondly a few days ago from Tesco for my credit score.

I applied for a report and score through Experian. My report showed some inconsistancies such as incomplete/correct previous addresses and not being on the electoral role (I am and even have the letter to prove it!).

When I sorted these out and called Tesco, they said I failed through credit scoring. My score is 838 FAIR, which I didn't think was that bad. I've no CCJ's or missed payments on anything, ever. I have 2 credit cards, one with my bank HSBC (£1500, 4800 limit) and 1 Virgin one (now expired 0% BT card with £5,000, 8200 limit). I did a Moneysupermarket Smartsearch and that returned 'Excellent'.

The customer service rep said that there were no records of searches on my file though. As if the banks made up their own mind and only put 'please contact Experian...' as an easy way of not dealing with it.

Tesco are willing to re-look at my application, if I send in 3 months of bank statements.

So my questions are:
1) Is it worth submitting extra details to Tesco? Having graduated in the last 5 years I'm still in my over draft so it can't look pretty
2) Would reducing the spending limits on my existing cards help as I'll have access to less money?
3) What are my options now? I'm paying up £120 per month and not reducing the balance!
4) Any card suggestions? Will A&L do me better?

I guess other people are in a similar situation? Just want to move to cheapest debt possible and pay it off!!

Thanks for any help!!!

Moggles_2

When I .... called Tesco, they said I failed through credit scoring. My score is 838 FAIR, which I didn't think was that bad. I've no CCJ's or missed payments on anything, ever. I have 2 credit cards, one with my bank HSBC (£1500, 4800 limit) and 1 Virgin one (now expired 0% BT card with £5,000, 8200 limit). I did a Moneysupermarket Smartsearch and that returned 'Excellent'.

Judging from the posts on here, it's easy to be lulled into a false sense of security by these ratings. Then it comes as a shock, when your application is turned down. The credit reports themselves are valuable. That said, additional services like credit scores are a nice little earner for the credit reference agencies, but of little practical use to most people. As for Moneysupermarket Smartsearch, don't forget the site is financed by lead commissions.

It's important to realise, there is NO universal credit rating applicable to all lenders and all products. None of us - including the agencies - knows how individual credit card companies view our applications. Lenders do not disclose this information.

Fortunately, there are ways to improve your chances of acceptance next time. For tips, which apply equally to all credit cards, have a look at the *Credit Rating* articles on the main site, in particular, Martin's *Manage and Improve your Credit Score* article, before you submit your next credit card application.

YorkshireBoy

"Smartsearch" neither asks for your income nor current indebtedness. How on earth can it say you are "excellent"?

I believe Barclaycard search only Equifax, so that will explain the lack of a search on your Experian file.

Moggles_2

Will A&L do me better?

Unfortunately, this card is underwritten by MBNA. As you have a sizeable balance on your Virgin card which is also issued by MBNA, this may not be a good choice at the mo.

Have you considered Egg card? Currently, you'd get 0% for 13 months. A 3% handling charge applies

EmptyCouch

Thank you for the replies. As a site and general money saving newbie, I just followed the links with the moneysupermarket 'Smartsearch' and a pinch of salt was taken!

I updated my Equifax records after the Barclaycard decline, so that should be up to date. So should Experian after the Tesco decline.

But thats 2 declines in 2 months, I'm assuming that doesn't look too good.

Should I try another lender or is it wise to wait (although continuing to pay just interest off)?

clio

EmptyCouch
what do they mean by that coment " fraud prevention apparently"
could they of put a note on your file that may stop you in the future .

jimbo26

Your biggest problem is your address inconsistencies and the fact you don't appear on the electoral roll.

EmptyCouch

clio wrote: »

what do they mean by that coment " fraud prevention apparently"
could they of put a note on your file that may stop you in the future .

I was provisionally accepted, but they said that the additional information that I provided wasn't enough to satisfy them. I wasn't on the electoral role at time, so that wouldn't have helped. And sometimes my flat is listed as 'Flat 1' and sometimes 'Flat A', so that wouldn't have been in my favour. When I spoke to Experian yesterday I mentioned this and they're able to put a note on the file to make sure future searches includes both flat names.

So I applied to the electoral role, which took a month, and switched my drivers license to my address. So I thought I would be good to go as I was provisionally accepted by Barclaycard pending confirmation of my address details - bank statements, bills etc. Which came back as negative!

So all that and Tesco weren't happy with my credit score either. Can I still apply for another card or is it best to wait a few months?

dhassen

i'd wait a few months EmptyCouch, if you've been declined for a couple. I went mental with applications a couple of years ago in the space of two months and it didn't do me any favours

shelovestobuystuff

I havn,t noticed much activity change in this supposed credit crunch,I can still get cards.The only one I have which has changed my credit limit was Barclaycard.I understand they are getting a bit of a reputation for slashing credit limits on the customers who dont make them enough money.
I had a 12k limit with them and a zero balance,infact they owe me money as balance was -£3odds.I got a letter telling me my account had been revised and credit limit reduced to £350.Reasons given were due to the way I was handling my account and they suggested keeping within my credit limit(I did this),paying more than the min payment each month(I paid £100,s more than min and usually cleared my balance monthly)and making sure payments were recieved on time(always).The one they missed out was make sure you manage your account poorly occassionally so that we can claw in more lovely cash by way of charges and hike up your interest rate as and when we please.
Barclaycard dont like good customers,they love bad customers bacause they make them more money.
Rant over.
I am a bit annoyed because I was keeping the card empty on purpose so that I could use it for big wedding purchases and expenses next year.

Volcane

I was a irresponsible in my younger years but finally got clear in 2002 and all bad marks taken off my credit report in 2005.

Bought current property in Oct 2006 and applied for a Capital One Credit card in Aug2007... to my surprise I got it with a £1000.00 credit limit and this was without being on the electoral role until Jan 2008.

In Feb 2008 they increased my credit limit to £1600.00.

In March 2008 I went into a "what the hell" mode and applied for a few cards that offered bonuses as wasn't bothered about a decline as not intending to apply for any other credit in next 12 months (at least) with the following results :

Tesco Club Card Credit Card : Declined
Post Office : Accepted
Virgin : Accepted
Amex Nectar : Declined
Goldfish : Accepted
Egg Money : Accepted
Alliance & Leicester : Accepted

I also upgraded my current account to an A&L Premier Direct and was accepted.

I now have various cards for various purposes (use abroad, cashback & balance transfers) so don't need any more. I've also kept the Capitol One for it's free Equifax facility.

Obviously it's unknown whether the result would have been different without the credit crunch but I gotta say I was pleasantly surprised!