Over 50K in my account - refused cc by MBNA

jewett

I am self-employed. I have over 50k in my account. No mortgage. Excellent credit rating. No outstanding loans. No direct debits on my account. No outstanding debts.

Applied last December.

Refused credit card by MBNA.

All documentation sent to them.

The refuse to give a reason why.

Opinions please.

seamus

When's the last time you had any kind of debt?

Your credit record shows the last five years of activity on any credit account. If you had no debts or loans in the last five years, then you have no credit record and you ironically represent a risk. Someone who has a credit record showing loans and repayments is considered a better bet than you, even if they're less liquid than you.

jewett

I've never been in debt.

DerMutt

They also probably realise that they'll never earn a cent in interest from you and so aren't bothered. Wouldn't you be better off with an AmEx or Diners Club card?

seamus

jewett wrote: »

I've never been in debt.

There's your problem so, you're an unknown quantity. Have you applied to any other institutions - how about your own bank? Were you applying for a personal or business card?

jewett

Yes of course, I would be better off with another provider but not till I get an honest answer out of MBNA.

They strung me along since last December, telling me the application was "being processed".

Wats_in_a_name

seamus wrote: »

When's the last time you had any kind of debt?

Your credit record shows the last five years of activity on any credit account. If you had no debts or loans in the last five years, then you have no credit record and you ironically represent a risk. Someone who has a credit record showing loans and repayments is considered a better bet than you, even if they're less liquid than you.

Would it be better then to try and build up a credit rating? What counts towards it?

Surfing_Xboxer

move on...

seamus

Wats_in_a_name wrote: »

Would it be better then to try and build up a credit rating? What counts towards it?

Yes, having a credit history is better than having been debt-free.
http://www.icb.ie/credit_rating.php#q01

Loans, mortgage, HP agreements and credit cards are noted on your credit history. Nothing else is - so your current account history, bills, car tax, insurance, all of that is useless.

Your current account history is only useful if you're applying through your own bank because they have access to it.

So yes, you're better off having a few small loans over the last couple of years with no missed payments than having no loans at all. Sounds mad, but there you go.

If you're thinking about applying for a mortgage in the next couple of years and have no debts, it would be worth your while taking out a €1,000 loan over 2 years to make yourself look better on a credit history report. It'll cost about €150 over the life of the loan. Seems like madness, but that's the way it works. Solvency isn't nearly as important as reliability.

Jet Black

jewett wrote: »

Yes of course, I would be better off with another provider but not till I get an honest answer out of MBNA.

They strung me along since last December, telling me the application was "being processed".

You wont get an answer. They are not obliged to give one just tell you yes or no thats it.

As said its down to how you manage your debt it does not matter if you had millions in the bank. All they care about is if you pay them back. Having no history means they cant see if you can manage debt.

You would be better off applying to your own bank and dont waste your time on this.

broker2008

I agree with what has been said. When MBNA were making their enquiries about you, there wasn't enough information out there to help support your application. One's ability to repay is backed up by regular ingoing income. You could have the same problem if you went for a mortgage.

jewett

Thanks for all the replies.

MBNA could have had the decency to give me a straight answer 1-3 weeks after submitting my application, instead of 3 months.

Instead, each time I phoned them to follow-up on the case I got glib comments about the application still being processed.

I would certainly recommend to anybody considering a credit card, for godsake don't choose MBNA.

Not straightforward people to deal with at all.

CSC

OP - If I were you I would check your credit rating. MBNA don't refuse credit if your circumstances and credit history are as good as you claim.

Fozzie Bear

My brother works for MBNA. Believe me you do not want their credit card OP. If I could sit you down for an hour with him you would soon know why. There are a lot of fine print terms and conditions which they use to financially rape their customers.

You had a lucky escape.

jewett

Fozzie Bear wrote: »

My brother works for MBNA. Believe me you do not want their credit card OP. If I could sit you down for an hour with him you would soon know why. There are a lot of fine print terms and conditions which they use to financially rape their customers.

You had a lucky escape.

ok thanks for the warning FB!

gbee

jewett wrote: »

I am self-employed. I have over 50k in my account. .

They don't do business cards ... like what's the difference, but that's the way it is. I do have a card with them and this came up when I was offered a big loan, pay off existing loans and have some cash to boot with one payment ~ perfect until ...

Self employed, so I says to her what if I said I wanted the money to buy a yacht, I'd have given it to you, but as you've already, I'm afraid I can't.

CSC

Fozzie Bear wrote: »

My brother works for MBNA. Believe me you do not want their credit card OP. If I could sit you down for an hour with him you would soon know why. There are a lot of fine print terms and conditions which they use to financially rape their customers.

You had a lucky escape.

Examples?

I have a card and have read the terms and conditions, I have never been financially raped by them.

Most of the posts on here about MBNA are generally about things like late charges, interest etc. All banks charge them, granted MBNA charge more than most, but if you adhere to the t & c's you don't pay these charges.

tawfeeredux

seamus wrote: »

Yes, having a credit history is better than having been debt-free.
http://www.icb.ie/credit_rating.php#q01


If you're thinking about applying for a mortgage in the next couple of years and have no debts, it would be worth your while taking out a €1,000 loan over 2 years to make yourself look better on a credit history report. It'll cost about €150 over the life of the loan.

I'm in a similar position, and am thinking of taking out maybe a €1k loan for 12 months. Anyone have any idea who's the best value provider for such a loan?

SophieX

OP I know of a similar case were the person had no debts and was strung along for the past three months. No reason given either.

A lucky escape if you ask me.

LadyJedi

You should just try a different CC provider, am with MBNA myself and I know they charge more then most

vector

the OP is "self-employed" could that be a red flag on some credit scoring system?

meaning variable income, possibly hard to send debt collectors after because no fixed work address?

100gSoma

CSC wrote: »

Examples?

I have a card and have read the terms and conditions, I have never been financially raped by them.

Most of the posts on here about MBNA are generally about things like late charges, interest etc. All banks charge them, granted MBNA charge more than most, but if you adhere to the t & c's you don't pay these charges.

I have to second this. I never found them sly or underhanded and have had no issues with them at all. As I said in a thread before, they actually lowered my interest rate to 10.4% 2 years ago when I said the payments were too much, and its been there ever since. Although I have had a zero balance since about that time too.

Dublin_Gunner

jewett wrote: »

Thanks for all the replies.

MBNA could have had the decency to give me a straight answer 1-3 weeks after submitting my application, instead of 3 months.

Instead, each time I phoned them to follow-up on the case I got glib comments about the application still being processed.

I would certainly recommend to anybody considering a credit card, for godsake don't choose MBNA.

Not straightforward people to deal with at all.

In fairness, if I hadn't an answer within a week or two I would have told them to eff off and gone elsewhere.

3 months?? Ha! What were you thinking?:p

Just go to your bank, a much better bet for acceptance, and probably a better rate - at least on charges.

MagicMarker

If you have €50k in your account then why do you want a CC?

CSC

SophieX wrote: »

OP I know of a similar case were the person had no debts and was strung along for the past three months. No reason given either.

A lucky escape if you ask me.

I wouldn't be so sure you are getting the full story.

MBNA want to issue as many cards as possible in order to make money, they don't decline applications for no particular reason.

Merch

Fozzie Bear wrote: »

My brother works for MBNA. Believe me you do not want their credit card OP. If I could sit you down for an hour with him you would soon know why. There are a lot of fine print terms and conditions which they use to financially rape their customers.
You had a lucky escape.

Thats severe, RAPE!? all CC have terms and conditions, when you sign up, you agree to them. I'm with them and I cant say I have found them any worse than anyone else, if anything I'm quite happy.
Online services, secure, they dealt with a company that never delivered/closed down for a large sum, I got my money back virtually straight away.

100gSoma wrote: »

I have to second this. I never found them sly or underhanded and have had no issues with them at all. As I said in a thread before, they actually lowered my interest rate to 10.4% 2 years ago when I said the payments were too much, and its been there ever since. Although I have had a zero balance since about that time too.

I had a similar situation and I got a similar reply,
I think the OP should move on to their bank or another bank and apply there.
As for why anyone would want a credit card with such a balance, I'd say because you have some protection against fraud, if its your own money ie debit card its a different story.

They are a business, I'd say they are no more ruthless or unethical than any other cc company?? why would anyone else stay away from them just because you (the OP) haven't fitted their requirements for a customer??
I guess I need to check their rates and fees, but in the past I found them better for rates (for me anyway) and their fees and penalties didn't seem much worse than any other organisation?

the_syco

MagicMarker wrote: »

If you have €50k in your account then why do you want a CC?

At a guess: protection. CC does chargebacks, you'd have to goto court otherwise.

brianwalshcork

If you were to start a credit card company tomorrow, who would you try to issue cards to? i.e. what would your definition of a perfect customer be?

If, god forbid, you should make a profit, would you consider it to have been earned unethically?

I've had an MBNA card for nearly 13 years, and they have yet to call to my house and murder my pets - which would be fairly ruthless... in fact, I can't see any eveidence of them being ruthless at all from your posts.

delllat

MBNA are weird

i had a card few years back with a 10k limit when i was on the dole with practically no savings

now im a self employed director of 2 compnies doing very well from it but strangely my new limit is 6k

they were giving me cash when i couldnt afford to pay it back but now i can afford it they dont offer it

Trampas

I left them as soon as they start making deposit to gambling sites (€10) as a cash withdrawal. I asked them was that not double charging since you charge the merchant and me. they avoided the question.

Tazz T

Awful company. I had a nightmare with them. Getting rid of them was just as bad.

Go to your bank and get a better deal with them.

Personally I've found Permanent TSB and their Ice card to be great although the interest rate has gone up quite a bit over the last year.