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  • FIRST POST
    • Lizbeth
    • By Lizbeth 14th Dec 19, 3:05 AM
    • 116Posts
    • 94Thanks
    Lizbeth
    Turned down for credit card
    • #1
    • 14th Dec 19, 3:05 AM
    Turned down for credit card 14th Dec 19 at 3:05 AM
    I've just been turned down for a 0% balance transfer credit card. Last time I tried, I could only get a card with a 900 limit. And when I got the loan I couldn't get a great rate either.

    Is there anything glaringly obvious I could work on sorting before applying again?

    I've just joined the MSE Credit Club, which is where I saw the Virgin Money CC that said I had a 95% chance of being accepted. I've just looked through some threads on here and will check the other two credit report companies too.

    I know it doesn't count for much, but I've got an excellent credit score, plus a low-ish mortgage of 280/month.

    4k loan
    4.5k credit card (credit limit 8k)
    525 credit card (credit limit 900)
    2k overdraft (overdraft limit 2k)

    Thank you!

Page 1
    • Ben8282
    • By Ben8282 14th Dec 19, 4:32 AM
    • 4,763 Posts
    • 2,637 Thanks
    Ben8282
    • #2
    • 14th Dec 19, 4:32 AM
    • #2
    • 14th Dec 19, 4:32 AM
    Welcome back to the forum after such a long absence.

    Credit card utilisation in excess of 56%.
    Overdraft utilisation at 100%.
    Loan.
    Mortgage.

    Excellent credit score.

    Assuming no other adverse factors not mentioned such as late payments, exceeding credit limits, defaults etc, or problems such as low income, not on ER, short length of time in current employment or at current address or similar things which could be viewed negatively, the most likely cause of your problem is the fact that you are not only living in your overdraft but using it at 100% utilisation. I'm afraid this looks very very bad indeed to potential lenders.
    But is the overdraft utilisation really showing on your credit files at 100%? Presumably your income is paid into this account which reduces/repays the overdraft every month and then it builds up again? What is they typical figure on the day of the month that the bank reports the overdraft which is being reported?
    If this overdraft were to be repaid and not used again I think your attractiveness to lenders would improve considerably.
    I do find it strange that if you had only one credit card with an 8000 credit limit, on applying for a second credit card you were only given a 900 limit. It is not what I would have expected.
    The overdraft absolutely needs sorting. Credit card utilisation is a bit high but not excessively so. Reducing the balances would however be beneficial.
    Last edited by Ben8282; 14-12-2019 at 4:44 AM.
    • nic_c
    • By nic_c 14th Dec 19, 7:28 AM
    • 2,210 Posts
    • 1,149 Thanks
    nic_c
    • #3
    • 14th Dec 19, 7:28 AM
    • #3
    • 14th Dec 19, 7:28 AM
    I do find it strange that if you had only one credit card with an 8000 credit limit, on applying for a second credit card you were only given a 900 limit. It is not what I would have expected.
    The overdraft absolutely needs sorting. Credit card utilisation is a bit high but not excessively so. Reducing the balances would however be beneficial.
    Originally posted by Ben8282
    OP doesn't say who the card issuers are, but if they are the same then that could be a reason. I remember years ago I has a Virgin card and applied for an MBNA and only got 1k because MBNA issued the Virgin card.
    • Gary_Dexter
    • By Gary_Dexter 14th Dec 19, 9:08 AM
    • 7,282 Posts
    • 4,845 Thanks
    Gary_Dexter
    • #4
    • 14th Dec 19, 9:08 AM
    • #4
    • 14th Dec 19, 9:08 AM
    Salary? Other income? Outgoings?
    • Lizbeth
    • By Lizbeth 14th Dec 19, 6:22 PM
    • 116 Posts
    • 94 Thanks
    Lizbeth
    • #5
    • 14th Dec 19, 6:22 PM
    • #5
    • 14th Dec 19, 6:22 PM
    28k salary
    Experian score 993
    15 months in current employment
    15 years in current flat
    55k mortgage
    8k Barclaycard CC (4.5k balance)
    900 MBNA CC (525 balance)
    300 Creation furniture loan (1.4k original agreement)
    4.5k Santander loan
    2.2k Santander overdraft (1,751 credit in use according to Experian)
    No other income, CCs or loans

    Outgoings:
    280 mortgage
    45 service charge
    35 parking
    90 electricity
    15 water
    35 broadband/line rental - need to sort this
    90 council tax
    15 mobile
    10 Spotify
    175 Santander loan
    100 Barclaycard
    25 MBNA
    30 Creation
    Annual car insurance, breakdown cover, MOT, car tax, Dropbox, Canva

    Thanks, yes it's been a while! And thanks for all your comments.

    I've just double-checked the Experian report, it shows a one-month late CC payment on a closed card 70 months ago. I don't use the credit cards on a monthly basis, I'm just paying them off (minimum amount each month - need to sort this too).

    One card is MBNA, so I guess that's the biggest reason Virgin Money turned me down.

    I did clear my overdraft but am now having to use it to bank roll work expenses. It's costing so much in fees not to mention pushing me to the wire, so I'm going to put my foot down about that. Once I clear it this time, I'll keep it clear.

    It was good seeing it on paper - when I typed the original post I thought, if I was a bank I'd be concerned about the maxed overdraft. I have a tendency to see the end of my overdraft as 'zero', so I need to get out of that (expensive) mindset!
    Last edited by Lizbeth; 14-12-2019 at 6:25 PM.

    • Lizbeth
    • By Lizbeth 14th Dec 19, 6:30 PM
    • 116 Posts
    • 94 Thanks
    Lizbeth
    • #6
    • 14th Dec 19, 6:30 PM
    • #6
    • 14th Dec 19, 6:30 PM
    Also I did wonder, my mobile's not working at the moment, so I listed my work mobile. Would that fail fraud checks?

    • Gary_Dexter
    • By Gary_Dexter 14th Dec 19, 6:46 PM
    • 7,282 Posts
    • 4,845 Thanks
    Gary_Dexter
    • #7
    • 14th Dec 19, 6:46 PM
    • #7
    • 14th Dec 19, 6:46 PM
    Speak to your work and ask them to provide you with an alternate means for expenses.

    I assume you’re also back-billing them for the interest as well?

    Ignore the “score” as it means nothing.

    I’m guessing it’s the amount of existing debt - have you tried other eligibility checkers to see what you qualify for?
    • Willing2Learn
    • By Willing2Learn 14th Dec 19, 6:50 PM
    • 5,200 Posts
    • 4,840 Thanks
    Willing2Learn
    • #8
    • 14th Dec 19, 6:50 PM
    • #8
    • 14th Dec 19, 6:50 PM
    Hi Lizbeth,

    Have you tried the eligibility checker from CapitalOne? I think you are more likely to be accepted by them as I believe you would fit their target market.

    https://www.capitalone.co.uk/creditcards/0-balance-transfer-credit-card-12-months.jsf
    I work within the voluntary sector, supporting vulnerable people to rebuild their lives.

    I love my job

    • Lizbeth
    • By Lizbeth 14th Dec 19, 7:34 PM
    • 116 Posts
    • 94 Thanks
    Lizbeth
    • #9
    • 14th Dec 19, 7:34 PM
    • #9
    • 14th Dec 19, 7:34 PM
    Thanks I just tried the CapitalOne checker and it said no. I guess for now if I work on clearing the overdraft at least, I'll be in a better position to look again in the new year. I've got my car bills coming up so can't look to start clearing any of the CCs/loans yet.

    I'll get my other credit reports and see if there's anything lurking in there. Yes, work definitely need to cover expenses/project costs directly without it having to come through my pockets (and no, I've not been back-billing them).

    • YorkshireBoy
    • By YorkshireBoy 14th Dec 19, 7:36 PM
    • 31,148 Posts
    • 19,191 Thanks
    YorkshireBoy
    One card is MBNA, so I guess that's the biggest reason Virgin Money turned me down.
    Originally posted by Lizbeth
    I believe Virgin underwrite their own cards these days.

    Any lender will look at what you have left after living costs and debt servicing costs. So what's your take home pay and how much have you got left after your outgoings above have been deducted? Then deduct essentials such as food and travel costs to work (including maintenance). Everything else is discretionary spending so can be cut back on. Is spotify more important than clearing your debts?...because you're paying interest on the payment you make to them!
    Last edited by YorkshireBoy; 14-12-2019 at 7:39 PM.
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