When your application is turned down...

RobL_3

I applied to MBNA, attracted by the 0% offer, and intending to dispense with all other cards. However, I've been turned down because of information in Experian.

I am rather surprised, and have written asking Experian for information. Have others experienced this, and what advice would they give, please?

:-[ :-[

funkymonkey

gosh it really does depend on what kind of history you have, prev. defaults, late payments, etc.

If you have a good credit history then the chances are there may be a mistake on your file so good to check it out.

also there are many factors that may help in an aplication that oyu should be aware of.

Electoral Roll
No recent house move or change of job
Not too over commited with credit cards

there are many other things to be aware of all in martins book!

im sure others will e around soon to give more advice but you were right to get a copy of your reports.

weatherwax_2

See http://!!!!!!.com/3jf9c.....

Sometimes, there is no fathoming the actions of banks when it comes to acceptance for CCs. If you read my post, which is the penultimate one on above link (long post, I know!), the follow-on from that was, to me, puzzling.

I had a long talk with a CS representative and was told that the letter being sent to us would state that we are 'over-committed'. I was told that acceptance is'nt based on what we owe, but on 'our available credit', meaning what we MIGHT owe in the future!

The bank have kept increasing our credit limit above and beyond an amount we we have never approached and would never dream of approaching (and that's in the many years we've been with the Co-op). So, we are in the ludicrous position of having to ask them to reduce our credit limit on our present CCs (which have been cleared!), in order to qualify for a CC with a much lower limit (which we requested!) than we already have available.

Plus, for the first time in our lives, we know we have the ignominy of being listed with Experian as over-committed, which is arrant twaddle. We have only ever used our Co-op CCs and don't HAVE any others.

The CS guy said that the fact we have been offered so much credit is a good thing which shows we are trustworthy, then admitted that, eventually it becomes a bad thing because, even if the credit is not used, we are regarded as errrr 'over-committed'. >:(

Talk about being caught in a cleft stick............ :-/

deemy2004

Stoozers take it as a warning to slow down the stoozing..... for a while.

It happens, and suggests its time to give the cards a rest, look at your card portfolio and those you never intend on using again should be closed out (unless youve had them for years, in which case reduce the limits)

weatherwax_2

Stoozers take it as a warning to slow down the stoozing..... for a while.

Crikey! Considering that the only new financial moves we've made in the past several years (encouraged by this excellent site), have been a BT to a 0% Egg offer in mid-October, and an application for a 0% CC from our own long-standing bank (at their instigation!), I would hardly think that qualifies us as 'stoozers'. ::)

Reaper

Weatherwax, if your problem is too much available credit, which you don't need, then just ask your existing credit card companies to lower your credit limits down to a sensible amount. Give it, say, a month to filter through to the credit reference agencies and then try again.

RobL_3

> acceptance is'nt based on what we owe, but on 'our available credit', meaning what we MIGHT owe in the future!,

Ah, that may be the clue. Thanks for that! I await Experian's report with interest.

Many thanks to all who offered advice. Much appreciated!

Fatboy_NSS

Look at this from the card companies' point of view - if an Experian check shows someone with a large amount of credit that they don't use, they're going to wonder why they're applying for more. If you have cards that you don't use any more, either shut them down or use them at least once a month. If they're being used it won't look as dodgy as if they're all at zero balance.

weatherwax_2

Weatherwax, if your problem is too much available credit, which you don't need, then just ask your existing credit card companies to lower your credit limits down to a sensible amount. Give it, say, a month to filter through to the credit reference agencies and then try again.

Thanks, Reaper, I now realise the 'available credit' problem, but I just wish that we had been told this in the first place to avoid what I see as a 'negative mark' on our credit report. That's the thing I'm most annoyed about. We've always prided ourselves on our good financial background, which has now been ruined because of an application for a 6 months purchases only 0% CC which we were encouraged to open by the Co-op themselves.

We had no intention of asking for one until the CR suggested it! We are going to ask for our credit limits on our current Co-op CCs to be dropped drastically, but re

giving it a month to filter through to the credit reference agencies and then trying again

I have no desire to try again as this has left such a bad taste in my mouth.

Maybe I'm over-reacting, but I feel really insulted at the thought that we might be regarded as bad risks, by anyone viewing our credit report, because of something we did'nt ask for in the first place.

weatherwax_2

Another thing occurs to me. We have 0% on purchases available to us, on Egg, until April 2005, but we thought it would be more sensible to just use it as a vehicle for paying off the BT and not complicate things by using it for purchases. Hence our willingness to apply for a 0% purchases only CC.

So much for trying to be sensible. ???

Reaper

You are sensible to separate spending and BT cards.

However if you want a card for spending then there are lots of alternatives to the Coop, who it sounds as though you have had enough of.

If you want a 0% card then go for Sainsburys, they will give you 0% for 12 months on purchases.

I prefer to pay the balance off in full on my spending card each month, it makes controling my finances simpler, so I am better off with a cash back card. Martin has articles on the best cash back cards if you want to follow that route.

Of course you need to sort out your existing high credit limits first. I wouldn't worry about the rejection itself, it won't have had any significant impact on your rating.