Virgin Money Credit Card Rejected. Please Help

littlepcat on 31/01/2025 - 10:03

Dear All,

I recently applied for Virgin Money Credit card (the one with 60k points) with $6k credit limit and was rejected. I have contacted them for a review and offered to submit more documents if needed. I heard nothing back but received the 2nd rejection letter with no specific reason mentioned.

I need a credit card and I am concerned this rejection will affect my future applications. Ideally I'd like to have their decision overturned. Hopefully I can get some advices here. Thanks in advance.

My situation:

  1. Income - way more than enough income and stable employment. After verifying my income on the phone, I was told "all good".
  2. Credit score - excellent. 947 from Illion
  3. Credit card history - I closed Kogan credit card ($6k credit limit. Had it for 3 years) just a few days before applying for VM credit card. Now I only have Amex with $2k credit limit.
  4. Debt - $2700 monthly repayment for my home loan. Fully offset. Minimum interest paid. No other debts.

I suspected my loan repayment was the killer and offered to provide bank statements to prove my ability to pay it. They didn't ask me to provide anything, but send me the 2nd rejection letter.

So the recent closure of a credit card could be the reason ?! If that's the case, how long should I wait to apply for another card ?

Thank you so much.

Any advice or personal experience will be highly appreciated.

Financial Credit Card

Comments

  • Bruceflix on 31/01/2025 - 10:11

    3 times a charm?

  • ddhar on 31/01/2025 - 10:12

    I had a similar rejection; no explanation provided either. Anyway, I successfully applied for a credit card from another bank within the week. No dramas.

    Additionally, I re-applied for the Virgin card a few months later and was successful this time. Go figure.

    • HeWhoKnows on 01/02/2025 - 18:09

      Agree
      Suggest OP forgets about Virgin and applies with another provider.

      Applying again with Virgin wont change anything

      Try the Bankwest Zero Platinum Mastercard

      I applied with Bankwest a few months ago and got rejected.
      At the same time got approved for a $10,000 credit card with HSBC .
      Go figure
      Then 2 weeks ago, applied again with Bankwest and I was successful.

      May have been because a loan I had outstanding with no money owing (paid out in advance) ended its term late last year.

      Sometimes it simple stuff like that

  • CptnObvious on 31/01/2025 - 10:22
    +1

    I have had similar experiences with St. George, who keeps on knocking back my application twice over 2 year period. I went with another two banks and was approved almost immediately.

  • aragornelessar on 31/01/2025 - 10:27
    +1

    My only experience with Virgin Money was when I applied a decade ago. Was rejected but could not understand why. Turns out it was my work Diner's Club card - they saw that and declined. Found out both Virgin Money and Diner's Club were under the Citigroup brand. I argued that it was a work card and work paid for it (but sometimes late), but no luck.

    I ended up getting a card with my everyday banking at St George with a larger limit instantly. I've heard people's experiences with Citigroup aren't the most positive

    • BronzingStubble on 01/02/2025 - 10:49

      Used to work for them. I would never ever have anything to do with them on the banking and finance side.

  • Dollar General on 31/01/2025 - 10:46
    +7

    So a virgin has screwed you

  • Hybroid on 31/01/2025 - 10:55
    +4

    Virgin Money don't want your business - so go somewhere else?

    • boomramada on 31/01/2025 - 18:59

      Yeah but op won't get 60k virgin points lol

  • crentist on 31/01/2025 - 11:46
    +1

    Please Help

    There there

  • MrBr0 on 31/01/2025 - 11:53
    +2

    When was your last credit card based from Citi? If within 3-4 months you will get an auto reject from Virgin. Call them they can’t explain, the system will auto reject. You won’t get an enquiry on your credit history as it’s their internal system rejecting you.

    Wait 4 months, apply again and it will go through with no changes made by you.

    • littlepcat on 31/01/2025 - 13:45

      My last Citi credit card (Coles Rewards) was closed more than 2 years ago after holding it for more than maybe 3 years. When I closed it, I had half of my annual fee refunded ($50).

      Now you got me thinking…
      When I cancelled my Citi card, they told me I would receive a cheque of $50. But that cheque never came. I had to make a phone call every month. Everytime I was told it's been processed, or something wrong with the previous refund, please wait. Eventually I received it after a few months. Evidently I didn't sound nice on my last phone call.

      I wonder if they blacklisted me ?

      • aragornelessar on 31/01/2025 - 14:56

        Looks like Kogan cards was owned by Citi until 2022 when it was bought by NAB, but still in progress perhaps:

        https://www.nab.com.au/about-us/citi-sale-notice

        Integration of the Citi Consumer business into NAB will occur progressively over the next two to three years. NAB will communicate with Citi Consumer customers about any changes to products and services as required over this period.

        My experience with Virgin Money above was also when they were owned by Citi. Perhaps your rejection is along similar lines

        • littlepcat on 01/02/2025 - 00:32

          Thank you for the information.
          That might explain it.
          We'll never know. :$

  • littlepcat on 31/01/2025 - 11:59

    Thank you so much, everyone.

    I probably can go somewhere else, but worry about being knocked back again for unknown reasons.

    I will make another inquiry.
    If still no luck, so be it.

    Thank you.

  • Foggy Fluoride Stare on 31/01/2025 - 12:07
    -3

    A loan that is fully offset carries little weight in terms of loan serviceability. It would be far wiser to close the account, as it serves to demonstrate one's actual ability to meet their financial obligations.

    Allow me to share a most enlightening tale, about a dear friend's uncle.

    This genius uncle acquired a residence with the intention of reducing his taxes through registering the property in his sister's name to avail himself of certain tax concessions. An offset account was opened and linked to the mortgage, in order to provide a buffer should unforeseen financial distress arise. However, in a series of unfortunate events, it was discovered that several years later, his sister had withdrawn the entire sum from the offset account and squandered it in its entirety at the Parq Casino.

    • Mugsy on 01/02/2025 - 10:15

      I'm pretty sure everyone else here can see that the problem with this tale is not with the offset account but the fact that Uncle Idiot bought a property in his sister's name. The moment his name wasn't on the title was the moment he had given his money away.

      An offset account opened in one's name and used correctly will save a tonne of money in interest paid. That's coming from an offset account user of almost 20yrs… and I have a wife who's bad with saving too BTW.

      In short, bad intentions results in bad outcomes. He should have found an honest way of lowering his taxes (which there are plenty of options).

  • tsunamisurfer on 31/01/2025 - 12:19
    -1

    After all that you didn't tell us what your income is.

  • wetsandwich on 31/01/2025 - 13:13

    Some providers only want riskier clients so they can just get the ones who pay interest and overdue fees.

    I was declined for a Kogan card (how insulting) of a few k, yet I've since got mortgages, margin loans, and bigger credit cards with other banks (and never missed a payment on anything).

    They will never tell you what their criteria is, so just go to another bank.

    If you get declined again though, give it a rest for 6 months so your credit rating isn't completely trashed.

  • littlepcat on 31/01/2025 - 13:14

    Just finishing speaking to them.
    They definitely don't want my business and that's ok.

    At least this time they told me because I was marked as "unemployed". How ?! After realising my employment status, they then said my income was the problem. The proof of income I submitted was more than $80k. It's not all my income, but it's more than the requirement.

    My request to speak to the verification team was refused. And I was told the application was now closed. They suggested reapplying after 3 months.

    End of the story.

    Thank you, all.

  • DingoBilly on 31/01/2025 - 15:40

    It happens. AMEX and commonwealth bank outright reject me now without explanation.

    The rest are happy to give me $50k limits without issue. As long as there's points to churn I'll keep churning.

  • Bonbi on 31/01/2025 - 16:03

    It's not even a good card, why are you so desperate for it?

    • littlepcat on 01/02/2025 - 00:43

      It suits me the best at the moment. I have some big spending and domestic flights coming. $2k Amex won't help much.

      Most importantly, I'd hate to see this rejection affect my credit score negatively.

      • ddhar on 01/02/2025 - 19:36

        The current amex velocity offer is pretty good (120k vff with free return domestic flight and virgin lounge access for $440 af). It also includes international insurance, unlike the Virgin Flyer.

        • Mugsy on 01/02/2025 - 20:27

          It's a good card but may not be an option for littlepcat as they currently hold an Amex… need to read those T&Cs to be sure but I've always not held an Amex credit card permanently as the Amex Velocity is part of my churning rotation and holding any Amex card use to exclude me from the bonus points. Hopefully they've changed the rules.

          FWIW, my Velocity credit card churning options include:

          • Velocity Flyer
          • ANZ Rewards
          • Citi Rewards
          • Amex Velocity

          and I would include the NAB options now… just never applied for one as there was always a better option when it was time to churn.

          As such, I stay clear of having any cards from these institutions as my permanent credit card. Up until recently, I was using sole debit cards between churns. Now I use the Bendigo Ready card.

  • Mugsy on 01/02/2025 - 09:47

    Definitely not your fully offset loan or monthly repayment… my mortgage repayments have been greater than $5k for a while and Virgin still gave me a card.

    Hell, last year I had canceled an ANZ Reward card and a day or two later I applied for the Virgin Flyer when there was that bonus 30k points and got it.

    I have no idea why you got rejected other than Virgin Money not needing more business at the moment. Makes me glad I kept my card a while longer.

  • Thrifty1 on 01/02/2025 - 11:02
    +1

    I had the same issue. I kept insisting on knowing the reason why as there was no reason to reject, met all criteria. Turned out when I closed the Qantas credit card (after they doubled fee) I stated it offered no value, customer service agent entered this as I cannot afford credit card!

    • Mugsy on 01/02/2025 - 11:55
      +1

      Yeah, need to be careful what we give as feedback. Usually I try to be honest as that's the only way a product can be improved on but sometimes that can backfire if feedback isn't taken as intended.

      These days, for credit card closures, I just say that I'm considering applying for a property loan which is usually met with zero resistance/pleas for me to retain the card since my goal is to churn cards and I just want to leave.

  • Gallop12 on 01/02/2025 - 12:08

    Not sure if relevant for you, but your residency status may also influence, I believe Virgin money (and Citi) only accept Australian permanent residents or citizens

  • yellowfever on 01/02/2025 - 21:09

    Serviceabilty and historical expenses is what they look at, not just income.

  • vorsprung on 01/02/2025 - 23:19

    I once got declined for a 24 month $80/m phone plan with Virgin.

    Despite having a decent income, zero debt and a house deposit in savings

    No reason given. All they said was that they’ve decided to reject my credit application due to information provided by one of their credit reporting agencies. I freaked out and checked my credit report with all 3 agencies, all was fine.

    I just bought it outright and went pre-paid, which is what I’ve done ever since. Kinda glad!

    To be honest, I think they had insufficient stock of the iPhone X, so knocked me back to sell to someone on a bigger plan.

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