Credit card firms refuse applicants who are likely to clear debt

Credit card borrowers with flawless borrowing histories are increasingly likely to be turned down when applying for new plastic, research from has revealed.

Mounting evidence from users of the online data analyst points to card companies giving preference to more profitable applicants who are less likely to clear their monthly balances.

Analysis of the credit card approval process reveals a pattern of approvals for those borrowers whose previous histories showed they were soft targets for card companies while those who paid off their balances were more likely to be refused.

Richard Brown, chief executive of, says: A common scenario is for card providers to decline applicants who already have a substantial line of credit available on other cards, but who want to take advantage of longer interest-free periods from newly available plastic

Our users tell us they are baffled by the rejection as they have perfect credit histories and only find out the real reason when they apply to credit reference agencies such as Experian or Equifax.

Credit card companies tell us they are acting responsibly by turning down borrowers who already have existing, generous lines of credit.

But the more cynical view and one that is backed up by Moneynet users is that they prefer to issue cards to applicants who they know will ultimately be more profitable.