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Q&A » Credit cards
I would like to apply for a new credit card but have in the past been turned down as I am currently unemployed (but do have an income), so I am a bit wary of applying again and have remained with my current provider, I pay off my balance every month and have a very good credit rating at this point in time.
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824Yes, it can be affected, especially if it was within the last 12 months.
Do not apply to your current provider for another one under a different label. Please see the table in this link for a list of providers and their cards:
http://www.lovemoney.com/news/credit-cards/reduce-the-risk-of-being-refused-credit-3925.aspx
Mike
Posted on 09 October 2009 |
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9MikeGG1 is right, it can affect your credit rating, but it's worth remembering that a lender can only see that you have applied for credit on your file, they can't actually see whether you where accepted or not. They may make an assumption of course, and they usually ask you on the application form anyway so I suppose it could be seen as moot.
If you have an existing card and have been in good standing over the last year or so, you may find that your rating has improved. There isn't an actual standard rating system anyway; each lender has their own specific criteria regarding who to approve or decline, and they won't tell you what that criteria is.
Why don't you get your free credit report from the following link, this may give you a good feel for your current situation although obviously nothing is guaranteed. Viewing your own file is different to a way a lender searches your file, so although it is recorded in the file that you checked it, the lender won't see that, and so it cannot affect your rating.
http://www.lovemoney.com/creditreport/
And, when you're happy with your rating, have a look at our credit card comparision centre also for the current best deals.
http://www.lovemoney.com/creditcards/
Regards,
Ninja (a member of the lovemoney.com tech team).
Posted on 09 October 2009 | Love 0 loves
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14Hi @CaptainFlak,
I got in touch with some people I respect with experience of engineering scorecards about this question. Their feedback is as follows:
"There are a couple of elements that lenders will use, specific to previous applications, that will have an impact on your application:
- "If you have previously applied to that lender within a certain time period you will likely be declined (regardless of the outcome of your previous applications)
- "If you have made multiple credit applications with other providers within a certain time period you will increase your chances of being declined. A single application is unlikely to make a difference, it is more of a cumulative issue. As above the outcome of these applications isn't a contributing factor, it's the fact that they were done in the first place.
"In both the cases above, it's not the fact that you've been turned down previously but the fact you've applied previously that is more likely to drive a subsequent decline.
"Having said all that, if your underlying ‘credit behaviour' or 'circumstance' hasn't changed, you would likely fail a score card again. "
So as I interpret it, the record of your application isn't so much an issue, unless you applied for loads of credit in a short space of time. What might be the issue is how you're scoring on credit right now.
GrandJury (a member of the ecommerce team)
Posted on 12 October 2009 | Love 0 loves
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