Balance Transfer

moorems · 8 June 2017 at 1:12PM

Hi All,

Just wondering if anyone else had the same problem as me? I wanted to do a Balance transfer (I just didn’t want to pay the Interest fee’s back to my bank, so I was trying to be clever) I did the eligibility check and was offered the 0% spending 0% Balance transfer on a 38 month card with MBNA. Happy Days! I went and applied for it said I wanted to do the balance transfer of £1000 that next minute I got accepted with a £500 limit and the balance transfer wasn’t accepted as my limit was too low! My credit card I have with my bank is £2500 so I can’t see why this happened. I cancelled my application with in the 14 day period, as the only reason I got it was to do a balance transfer and help me to save money on interest fees.
What went wrong?:(

Ebe_Scrooge · 8 June 2017 at 1:45PM

Each lender will have their own criteria, which influences the amount of credit they're willing to extend to you. Key factors tend to be income and credit history. The reason you were offered a relatively low limit could be anything, but if you have a relatively low income, or any negative markers on your credit file, or already have a reasonable level of debt, then this may well be it.

However, no-one will ever know for sure - criteria will differ from one lender to another, and are confidential. You could try another application to a different lender - but don't attempt any more. Generally, 2 applications in a short space of time is OK, more than this and it starts to negatively affect your credit file.

Candyapple · 8 June 2017 at 1:47PM

Read this:
http://www.moneysavingexpert.com/credit-cards/bad-credit-rating

My guess as to why you got such a low limit is any or all of the below:
a) Your salary is too low
b) You have a lot of debt elsewhere
c) There's a history of late payments/defaults/CCJs on your credit history

swallow123 · 9 June 2017 at 10:03PM

Some banks have a nasty habit of doing this! Take a bow .... Clydesdale Bank! I filled out their online application for a 0% balance transfer card. In the box where I was asked to input the amount I wished to transfer I input £4000. Hey presto - all accepted and ticked the agreement box.

A few days later the written agreement arrives in the post. I check the credit limit of the card and its £500 !! Basically, about as much use as a Chocolate Teapot!

It's not Treating Customers Fairly and you are basically agreeing online on a form that is not Contract Certain.

I felt totally 'led up the garden path'. I complained and the robots at the other end could only spout out their much practised platitudes. They just couldn't grasp the point that surely accepting a transfer request of £4000 means the customer will get an account with the card provider that has a £4000 limit (or more) to accommodate that £4000 transfer.

Absolutely disgusting.

[Deleted User] · 9 June 2017 at 10:43PM

Fraid its their business, their rules, their limits.

Ben8282 · 10 June 2017 at 3:46AM

swallow123 wrote: »

Some banks have a nasty habit of doing this! Take a bow .... Clydesdale Bank! I filled out their online application for a 0% balance transfer card. In the box where I was asked to input the amount I wished to transfer I input £4000. Hey presto - all accepted and ticked the agreement box.

A few days later the written agreement arrives in the post. I check the credit limit of the card and its £500 !! Basically, about as much use as a Chocolate Teapot!

It's not Treating Customers Fairly and you are basically agreeing online on a form that is not Contract Certain.

I felt totally 'led up the garden path'. I complained and the robots at the other end could only spout out their much practised platitudes. They just couldn't grasp the point that surely accepting a transfer request of £4000 means the customer will get an account with the card provider that has a £4000 limit (or more) to accommodate that £4000 transfer.

Absolutely disgusting.

I think you will find that they did not actually agree to the balance transfer request at the time of application. You were merely asked to state the amount of the balance transfer that you wished to make as part of your application.
As it turns out you were given what was probably their lowest possible limit, no doubt for reasons similar to the OP and as suggested by others above.

bigadaj · 10 June 2017 at 9:12AM

swallow123 wrote: »

Some banks have a nasty habit of doing this! Take a bow .... Clydesdale Bank! I filled out their online application for a 0% balance transfer card. In the box where I was asked to input the amount I wished to transfer I input £4000. Hey presto - all accepted and ticked the agreement box.

A few days later the written agreement arrives in the post. I check the credit limit of the card and its £500 !! Basically, about as much use as a Chocolate Teapot!

It's not Treating Customers Fairly and you are basically agreeing online on a form that is not Contract Certain.

I felt totally 'led up the garden path'. I complained and the robots at the other end could only spout out their much practised platitudes. They just couldn't grasp the point that surely accepting a transfer request of £4000 means the customer will get an account with the card provider that has a £4000 limit (or more) to accommodate that £4000 transfer.

Absolutely disgusting.

So you'd presumably prefer to have been declined?

Balance Transfer

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