[Thomaska]

Hi, I'm new to the forums.

Recently, I tried applying for a Wizard Clear Advantage MasterCard to avoid paying international fees when using the card to purchase online. After researching what seemed such a fantastic (and rare) card, I was mortified to read my mail and find I was declined! Arrgggh!?!?!

To date, I've never made a late payment. Never a defult. My only other form of credit is a single credit card with a $2K limit, nothing owing. I've been living in Melbourne for 5 months, and employed by my current employer about the same.

Does anyone know what could possibly have caused them to decline my application? Perhaps some card issuers target and accept only those with high existing debt?

[one9]

Originally Posted by Thomaska

Hi, I'm new to the forums.

Recently, I tried applying for a Wizard Clear Advantage MasterCard to avoid paying international fees when using the card to purchase online. After researching what seemed such a fantastic (and rare) card, I was mortified to read my mail and find I was declined! Arrgggh!?!?!

To date, I've never made a late payment. Never a defult. My only other form of credit is a single credit card with a $2K limit, nothing owing. I've been living in Melbourne for 5 months, and employed by my current employer about the same.

Does anyone know what could possibly have caused them to decline my application? Perhaps some card issuers target and accept only those with high existing debt?

There is no way anyone can say with accuracy why you were declined without having all the information.

There are many possibilities. Send a request to Baycorp Advantage for a copy of your credit file.

Check:
- There are no credit defaults
- How many addresses are listed in your file?
- Is the latest address in the file the same as the address you applied with?
- How many credit applications in total?
- How many credit applications in the last 6 months?

Also, think about:
- How long you have lived at your address? Less than 2 years?
- How long with your employer? If less than 2 years, was your previous employer 3 years or more?
- Any history with Wizard
- Does your gross income compared with after tax income make sense (i.e. Is the difference (tax)) about right? If not, it is more likely it is made up or fudged
- How much income do you have compared with expenses (what you stated)
- If you have mortgage and/or credit cards, your stated amounts may be ignored and calculated amounts may be used
- Do you have a partner? Live with someone? Share expenses? If this question is asked, and if you answer affirmative, then your calculated expenses will be lower

It could be simply that the calculations of your income compared with living expenses (and mortgage repayments if any) don't allow for spare for more credit card payments.

Different lenders all have slightly different credit criteria. My suggestions are (a) possibly call up Wizard and try to speak to someone in the right department, and there is a small chance they may tell you why (b) Check your credit report (c) Don't apply for another credit card for at least 3 months, possibly 6 months, preferably 12 months.

[mileagemax]

Wizard is owned by GE Money, so you might want to check if you have any current or past relationships with them. GE Money includes credit cards like Coles Myer Source Mastercard or retail finance at Harvey Norman, etc.

[Thomaska]

There has never been any credit relationships with GE and myself. Nor Harvey Normans. In fact, I've never had a hire purchase (although have enough of a credit record to obtain credit).

I requested my credit file from Baycorp. It listed my mobile phone account, Virgin Credit Card and unsuccessful attempt at a Wizard card. 100% clean.
1 address listed on file, the same as I applied with.

I've lived on and off in my current address for 5 years, however recently it's been closer to 5 months. I listed 5 years on the application. My previous employer was less than 3 years, but I would guess this is fairly common? For those of you with a Wizard Clear Advantage Mastercard, how long have you lived in your current address? Been with your employer?

The income entered was correct and was entered directly from my payslip (above $50K). My expenses are minimal - no rent to pay nor dependents. Nothing owing on my Virgin credit card (limit $2K) and only pay $70 per month for my mobile. No mortgage.

I'm living with family.

Thanks.

[aspro2]

Thomaska, in the end none of us can see inside GE Money's criteria, so your best bet is to write a letter explaining your situation. Don't make assumptions about why you were rejected -- just describe the salient details for supporting an application.

[straitman]

Originally Posted by Thomaska

There has never been any credit relationships with GE and myself. Nor Harvey Normans. In fact, I've never had a hire purchase (although have enough of a credit record to obtain credit).

I requested my credit file from Baycorp. It listed my mobile phone account, Virgin Credit Card and unsuccessful attempt at a Wizard card. 100% clean.
1 address listed on file, the same as I applied with.

I've lived on and off in my current address for 5 years, however recently it's been closer to 5 months. I listed 5 years on the application. My previous employer was less than 3 years, but I would guess this is fairly common? For those of you with a Wizard Clear Advantage Mastercard, how long have you lived in your current address? Been with your employer?

The income entered was correct and was entered directly from my payslip (above $50K). My expenses are minimal - no rent to pay nor dependents. Nothing owing on my Virgin credit card (limit $2K) and only pay $70 per month for my mobile. No mortgage.

I'm living with family.

Thanks.

The one thing that jumps out at me is that you may not have a sufficient credit record. i.e. when they did the credit checks and went looking for information about you they found that from a credit reference point of view you almost don't exist.

[aspro2]

Originally Posted by straitman

The one thing that jumps out at me is that you may not have a sufficient credit record. i.e. when they did the credit checks and went looking for information about you they found that from a credit reference point of view you almost don't exist.

It's a logical conclusion, but I was issued one without any credit record in Australia, so there are other criteria at play.

[bfarnickle]

That's weird - i applied for one for just that reason - so i don't pay conversion fees overseas.

i actually gave up at the point where they needed me to fill in 1000 forms to verify income etc etc. I just left them in the house and didn't even bother filling them out, let alone post them, but a few weeks later the card arrived in the mail.

you should hassle them to give you a good reason for declining you - you must be the first person in the world whom a credit card company didn't want business from!

[oz_mark]

I know two people that were rejected by GE. Both of them subsequently obtained credit cards from a bank (one from Bankwest, one from Commonwealth). This tells me that there is something a little different in GE's scoring.

[Thomaska]

Yeah, ended up speaking with the top manager at the complaint resolutions department. No joy.

I work in lending so have a pretty good idea on the possible lending criteria a company can use.