Credit card application refusal.

[Fordian]

Curious: DC 26, £30kpa, solid job of 2.5 years, lives at home, no debt apart from student, banked with a bank (X) for 2 years, tho his pay goes into another bank's account; applies for a credit card with X on line (new product from X bank)- but got refused!

Any idea why?!

Have they checked their credit score?

Most likely if they have never taken out credit before they won't have a history.

Are they on the electoral roll?

First step would be to check credit report

I think the living at home and presumably not paying any bills at the address will be a factor. He's presumably failing credit checks because there's nothing to check.

Get them to go on money saving expert you can do a soft check for credit cards that won’t affect credit score, will tell them which cards can definitely get before applying. There are a couple think it’s mbna and chase that are available for anyone. They also have on MSE a credit report section where you can check your credit rating.

Thanks everyone!

I 'laugh' because the day I turned 18, a penniless student in 1980, I think I was offered a credit card about once a month, with £8000 limits! 😂

I'd be surprised if you were offered £8k cc limits in 1980. You could buy a house for that then.

I got one in 1992 age 19 and the limit was £500 which was around a month's salary at the time.

He tells me he got 646/750 on X's own credit rating score.

X is Chase, by the way.

What credit limit did he request?

Does he have any direct debits?

You can’t compare life 45!! years ago to life now.

He should apply for one with the bank that receives his pay each month or one listed as a 'starter' credit card.

Interest rate and limit is irrelevant as all he needs to do is pay some of his normal spending on the card (petrol, fares, subscriptions?) on the card and pay it off in full each month by direct debit. Then after a few months, he'll be able to move on to something more mainstream with a higher limit to give him more flexibility, eg paying for holidays, but always sticking to what he can pay off each month.

Average house price in London where I was in 1980 was £28,000 ish! Month one you were offered £2000 credit limit, then upwards every time you used it! 😬🤣

My parents bought the house DM still lives in for £7k in 1978 and DSis bought a house in 1994 for £16k, so yes, you could buy a house in 1980 for £8k.

Tell him to check his credit rating on clearscore and then they give you pre approved credit cards under the “offers” section that you can apply for. That’s how I’ve always got mine; they even give you an idea of the limit you’ll get. I regularly shift my balances around on 0% long balance transfer offers.

My DS was living at home with no bills. Even his phone contract was still on our account from his student days. He was immediately approved for a credit card - albeit one issued by his own bank where his salary was paid in. He also got approved for a mortgage recently by one of the main High St lenders. So I'm not sure how much of a factor bill paying is on credit ratings. NB he is also not a high earner.

Chase are targeting certain customers at the moment. He likely didn’t fit the profile they wanted when he applied, even though it is invitation only.

I feel cheated! Barcaycard only offered me £800. I was 17 and a student.