Applying for Credit
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sai5
Posts: 34 Forumite
HI Friends,
I would like to know what should be the gap for applying for credit when your credit check is going through. I know if it is declined you should wait for 6 months.
Last month I needed around £ 5000 pounds. I did not knew about money transfer credit cards so applied for a loan and got the loan at 16.4 APR. So took it. This month I have came to know about the Money transfer MBNA credit card and applied. I got a credit limit of £2000 which is 0% for 29 months. So I want to apply for another MBNA card so that if I get another £2000 I would be able to pay off the loan using my overdraft and part of salary. Then I would be having plenty time to clear the cards.
My question is what should be the gap between credit checks if you are passing the credit check.
Thank You
Sai
I would like to know what should be the gap for applying for credit when your credit check is going through. I know if it is declined you should wait for 6 months.
Last month I needed around £ 5000 pounds. I did not knew about money transfer credit cards so applied for a loan and got the loan at 16.4 APR. So took it. This month I have came to know about the Money transfer MBNA credit card and applied. I got a credit limit of £2000 which is 0% for 29 months. So I want to apply for another MBNA card so that if I get another £2000 I would be able to pay off the loan using my overdraft and part of salary. Then I would be having plenty time to clear the cards.
My question is what should be the gap between credit checks if you are passing the credit check.
Thank You
Sai
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Comments
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It's not so much the searches themselves (if done in moderation) that's going to be the problem here. There is no hard or fast rule but three or so searches in succession is my personal limit (and then not doing anything for 3 - 6 months until reapplying for credit).
MBNA has just given you a credit card and the likelihood of them giving you another without reducing your existing limit (which presumably has now been used for money transfer and hence cannot be reduced) is slim.
You're effectively asking them "Hey there Mr Lender, give me more credit now please" when they have just entrusted you with £2000 to see how well you manage it. There's a reason they gave you a £2K limit. Depending on your income, expenditures you may very well be able to afford repaying additional credit but until the lender's confidence in your ability to stick to the terms are proven I'd be skeptical if you got additional credit through them in the short term.
It's also not a very good idea to pay off debts with overdrafts unless they are cheaper than the loan APR (or 0% for x in the red). The other issue is that overdrafts are repayable on demand so make sure you have the means to clear it very quickly if you decide to go down that route!0 -
Thank You for the information. As you said I have got 0% overdraft for 6 months. So that is the reason I am using my overdraft.0
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As MadProf pointed out the chances of being able to do this are exceedingly slim. How about applying for 10 MBNA CC accounts and getting a total of £20 000 limit - doesn't make sense does it.So I want to apply for another MBNA card so that if I get another £2000 I would be able to pay off the loan using my overdraft and part of salary.loose does not rhyme with choose but lose does and is the word you meant to write.0 -
I agree with you but is there any other way to reduce that APR.
Thank you0 -
Be wary of the OP, multiple posts on multiple boards with conflicting info0
This discussion has been closed.
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