What to do as Virgin Money keeps rejecting our credit card application?

My partner and I have been trying to apply for a Virgin Money High Flyer card for the last 3 years. We earn approximately 250k to 300k per annum between us through our business (which has been establised for 6 years) have a mortgage and 2 kids. We currently have 3 credit cards with a total limit of 30k, 2 of which I plan to cancel once this Virgin card is approved. We pay the balances every month and have an excellent credit rating. Virgin Money are not able to provide any guidance as to why they keep rejecting our applications, they are most unhelpful. I could cancel the other two credit cards now, but I will only do this if I know if will make a difference. Has anyone else had a similar experience and overcome it? If so, what did you do?

Yes, I have but not directly with Virgin Money.

I always keep only 1 card open and usually the lowest credit limit when I apply.

Credit lenders have there own policies and threshold so by having a mortgage, kids and 3 other cards you may have hit your credit limit?

Have you considered going for the Virgin Money Flyer Cards - $6k limit, 100k points if you spend $1.5k per month?

If I go for the 6k limit card are they more likley to allow me to upgrade to the High Flyer card at a later date?

Possibly, but I don’t know why you would want to?

Firstly, I don’t think your credit rating, how much you earn, or the fact you pay off your existing balances every month necessarily even comes into it when it comes to getting approved for credit cards.

These decisions are made overseas in a back-room department where the person deciding it is simply going through their “tick sheet”. And if you don’t tick all the boxes, you get declined. Don’t think they are doing any more than that because I believe it is as simple as that.

They just seem to add up the total credit limits of all the cards you presently hold, plus the one you’re applying for, and if it takes you over whatever their cut-off is then they decline (and you are never going to find out what that “cut-off” is so forget even asking them).

Your monthly expenses is the other thing they take into account, and perhaps you could lower your monthly expenses in your application.

And it’s not just Virgin Money, all credit card companies and their overseas centres, are “unhelpful” when it comes to why they decline.

Personally I find I can hold my regular credit card I use for all my daily purposes ($6,000 limit), plus two others which I am only using for points offers and cancel immediately after getting the points ($6,000 each) , at any given time.

That’s just my experience but it works for me. I’d get rid of one or more of your other cards before applying.

The other issue is that card you want has a minimum credit limit of $15,000. Don’t know what the credit limits of your existing cards are, but if they’re both also $15,000 minimum credit limit cards (which is quite high) then there’s the issue why you may get declined. The card companies just add up all the credit limits and assumes the worst debt ($45,000 if you have 3 cards with $15,000 limits each) and decides your application on that. You can find cards that come with similarly large points bonuses with only $6,000 limits and that helps getting approved every time.

Thanks Graham, I’ll have a look at the other Virgin Money cards and see if there are any better options.

1 Like

@nick26 If your goal is Velocity points, Citi had a really good one called “Citi Rewards - Velocity” which gave you 100,000 Velocity points and you could just keep applying for it over and over without waiting 12 months, but they have recently discontinued the offer. It might come back again.

Another card for Velocity points is the Westpac Altitude Velocity Platinum with 75,000 Velocity points and only a $6,000 minimum credit limit.

Thanks Graham, this is really helpful. Are they both Visa cards? I already have a Velocity Rewards Amex card, but looking for a Visa card to fill the Amex gaps.

There’s nothing in the Virgin Money terms which says you can’t do this with the Virgin Money flyer card. I’m currently on my second round in 6 months (a bit annoying that you need to hold it for 4 months but it’s a good point v annual fee outcome for me).

1 Like