Turned down on 'affordability'

ferry

I recently applied for a MBNA card to take advantage of a long term 0% deal but was turned down based on 'affordability'.
The application was designed to BT all other expensive credit to it which would have meant a reduction in my outgoings-I stated this on my application.


Thanks for any advice
Ferry

YorkshireBoy

ferry wrote: »

The application was designed to BT all other expensive credit to it which would have meant a reduction in my outgoings-I stated this on my application.

But there was no guarantee that you'd close down the other revolving credit (card) facilities, meaning you could very quickly double your debt...and that's probably what they meant.

You could try appealing their decision, but put particular emphasis on your intention to immediately close down the other cards once the BT has gone through.

Do you have a 'lot' of available credit (in relation to your income)...of the revolving type, ie credit cards, overdrafts etc?

ferry

Hi YB and thanks for the reply..
At this stage I have a Egg CC 1900 balance/6k limit & Mint CC 6000 bal/7500 limit.No other debt commitments

If it helps I earn around 30k per annum and havent missed a payment anywhere for years.I am a homeowner (105k mortgage against property around £220k even by todays standards)
I'm a bit worried about making multiple applications if this is likely to keep happening especially as I'm due to remortgage in May.

I'm considering consolidating into my mortgage next time round given the amount of equity I have?

Thanks again for any advice
F

YorkshireBoy

ferry wrote: »

At this stage I have a Egg CC 1900 balance/6k limit & Mint CC 6000 bal/7500 limit.No other debt commitments

As verified by your credit reports? ie, have past agreements been properly closed and marked as settled?

If it helps I earn around 30k per annum and havent missed a payment anywhere for years.I am a homeowner (105k mortgage against property around £220k even by todays standards)

Equity won't be taken into account for the credit scoring, although mentioning it in an appeal letter (along with other information) has brought me success previously in overturning rejections.

I'm a bit worried about making multiple applications if this is likely to keep happening especially as I'm due to remortgage in May.

Another one shouldn't matter? Anyway, if you appeal the MBNA decision they'll probably search you again.

I'm considering consolidating into my mortgage next time round given the amount of equity I have?

I'm no debt expert, but they always say that should be an absolute last resort don't they?