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Response to EGG.COM - WARNING

from pendle (pendle@amun-ra.demon.co.uk)
I was under the impression that details of applications you had made for credit were logged by the credit reference agencies.

If, for example, you applied for a credit card with MBNA and were accepted with a 7k limit, details of the search plus your account details would then appear on agency files.

If you then decide to apply for a card with Nationwide, when they search they will see that you have a card with MBNA which may affect their decision. If they refuse you and you apply for a Barclaycard, then Barclaycard would see that you already had a 7K credit limit and had also applied for Nationwide card. Its a way of seeing what you're up to and how far committed you are and also to stop fraudulent users.

Because they are an internet only card issuer, EGG might have a more stringent criteria than other card issuers. It might not have anything to do with you how good a payer you are, but maybe because you're not in the right type of job, or haven't been there long enough, maybe because you've only just got a new mortgage might have something to do with it. Its probable that EGG will not give you a full explanation of where you failed, credit companies rarely do, they will send you a form letter saying something like they use a process called credit scoring and this time you weren't successful.

If you've just got a mortgage, then I wouldn't bother applying for more credit just yet. Some mortage companies do credit check you again before they release the funds to make sure that you're not borrowing your deposit on credit!

On a personal note, I wouldn't bother using MBNA, although they give a low interest rate to start, its quite high compared to other cards, plus they don't give you an interest free period, interest is charged from the day you make a purchase. A good always-low interest rate card is Nationwide or even People's Bank, to name just two.

Pendle

(posted 8892 days ago)

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