Credit Card Rejection--any suggestions?

I am wondering what it takes to apply successfully for a credit card. 

I have lived here 3 1/2 years, now on an ILR.  I have been employed 2 1/2 years with a decent income, have had a pay monthly Vodaphone tariff for 1 1/2 years, have several store credit accounts, on the council tax bill and home insurance, and have a full driving license.  Further, I am a staff member to where I bank (although not on the retail side)--and they have advised I am not likely to be approved.  But, when I asked why not, she couldn't say.  So, I am really confused and frustrated.  Naturally, I don't want to apply elsewhere if there is something fundamental that needs to be addressed.  But, how do I know if it's just my bank?  Or if it's not, what is the key to applying successfully?

Does anyone have any personal experience or advice?

 

Have you looked into what your credit is with the credit scoring agencies?  If there's something working against you, a credit check may be able to tell you. 

Might be worth a one-off fee to see if there's anything substantial going on?

Hi,

You're not alone in this type of scenario, and it's not really down to you as an indvidual per se' but more over the algorithm's the various credit reference agencies are using to 'score' you.

So, the first element from me would be to ask if you've checked your own personal credit file and read the report from it, and understood all the various elements it contains and reports about? If you have, can you go through each section of the report and look to see how you can act on the suggestions to help boost your rating. If not, then I suggest this be the first place you look at and check. The one I personally use is CreditExpert - http://www.creditexpert.co.uk/

Another aspect I suggest you can do, is get a pre-paid credit card, and use that and 'operate' the account successfully and properly so that they submit the monthly reports about you to the credit reference agencies.

Do look at your report and act where you can on the suggestions it provides ...

Your bank will also have an internal scoring system, and the same sort of principles apply, have you operated the account sensibly, often in overdraft etc? nowadays the banks may well look at your spending habits and where your income comes from etc - mandatory outgoings, expenses and compare against your income. Put short, if you are spending in what appears to be extravagant choices you'd be most likely turned down for any borrowing. If that's the case, adjust your spending, put more into savings etc.

Borrowing money is much more difficult nowadays - even via the credit card route. Don't be tempted to apply all over the place for lending, the various lending options will refer back to your credit report and say that they've done so so as to leave a trace. Apply for too much credit and subsequent searches will show that up and most likely will refuse you.

See how you go with the above and good luck

Cheers, DtM!

Hi DtM,

Thanks for the reply.  I found it really helpful, and I am already on the link you sent.  I've only just begun to explore, but I answered the 10 questions that creditors look for before extending credit and I got an average rating.  I will continue to delve into this and take heed to your suggestions.

MrsT

...I answered the 10 questions that creditors look for before extending credit and I got an average rating. 

Where on the site is that?

I would be interested to answer and see my rating as well.

Where on the site is that?

I would be interested to answer and see my rating as well.

Hi

It's actually from a different site:

http://www.moneysavingexpert.com/loans/credit-rating-credit-score#improve

Also, if you are not yet a British citizen and therefore unable to put yourself on the electoral register, then put a statement on your credit report to that effect.  This (electoral register) seems to come up on here time & again as a barrier to getting credit - because a person is not on the electoral register when in fact the person is not eligible to be.

A previous thread regarding this issue:

http://talk.uk-yankee.com/index.php?topic=60575.0

It's probably the electoral register. What I read a while ago is that you need to send a letter to the credit agency to have them put on your record that you're not on the electoral register. Once they do that, when you apply for credit whoever is running it should see that note.

I have an account with Nationwide building society.  When I went to add my USC husband (currently on FLR(M)) to the account earlier this year, he was asked if he would like to apply for a credit card.  The application was made in his name, and was successful, so it can't just be an electoral register thing.  He is on a low salary, which I thought would also count against him.  Perhaps it is worth trying with a building society?

I have two credit cards.  One from Natwest and one from HSBC.  I have current accounts at both banks.  I am not on the electoral register.  I have no idea why I was able to get them when others seem to have problems.  I don't hold a job (other than as a carer for my MIL), I don't have a savings account and I didn't even have a monthly account for my mobile at the time.  In fact I had zero credit in this country at the time of issue.  I didn't even ask for the credit card at HSBC.  They offered it to me when I opened the account.  I've seen so many discrepancies in the way things are done in different regions here.

I would second the notes about putting a notice on your credit reports, but keep in mind that there are three major agencies, and banks may only check one of those, so do it for all three.  What I've been told is that these decisions are usually made by a computer and are taken out of people's hands, but if there is a note on there, they are required to have a real person handle it rather than just a computer crunching numbers.

I also suspect it's the electoral roll thing.  I don't get it either, as I had no trouble getting a credit card.  However, I recently had something that required a credit check.  I got very flustered when I was told by them that I have no credit history at all at my listed address.  He ran the check multiple times and finally gave up.  I went to my bank with questions as to how this could be and I could be told I didn't have a credit rating at all--given I'd been paying my credit card AND my mortgage in my name at this address for over two years.  They said they believed that somebody was only looking at the electoral roll and denying me based on that rather than a proper credit check.  I was so frustrated in the end.

These suggestions are great. I have stellar US credit and bubkus in the UK, and to my great shame got rejected for a credit card with Halifax. I've now signed up with CreditExpert and, when I get access, I will put that note on my report about not being eligible for the electoral rolls.

A little behind schedule as now we want to buy a house!

Call Credit, Experian and Equifax are the main credit report agencies.

You can order a copy from each, usually for a fee:
http://www.callcredit.co.uk/consumer-solutions/your-credit-report
http://www.experian.co.uk/consumer/experian-credit-score.html
http://www.equifax.co.uk/Products/credit/credit-report.html

See also:
http://www.direct.gov.uk/en/Nl1/Newsroom/DG_189308

If you have debt, you can get debt advice on how to manage your money better:
http://www.direct.gov.uk/en/MoneyTaxAndBenefits/ManagingDebt/index.htm

Options if you have been refused credit:
http://www.direct.gov.uk/en/MoneyTaxAndBenefits/ManagingMoney/CreditAndStoreCardsCreditAndLoans/DG_10035364

This is a great, easy to use money advice book that we have used in managing our finances:
http://alvinhall.com/books/b006.php

Hope that helps!