Refused 0% credit card deal - advice needed

BillBonesKnows

Evening all,
New to the forum, looking for some pretty urgent advice !

I have been working in a temproary position for a few motnhs, along with my girlfriend also. Therefore we have been earning less than usual, but with the same outgoings.

As a result we have both been using our agreed overdrafts, (within the limits and no unauthorised usage/fines). We have both been asked today to reduce our overdrafts significantly within a few weeks, which is unrealistic and so have had to agree to a repayment plan to reduce the overdraft mroe gradually.

Further, I recently got a new job and we bought a holiday with the intention of switching the cost to a 0% credit card - however Virgin told me where to go, citing the amount outstanding - which isn't huge and vertainly won't be compared to my new salary.

However now I am unsure as to whether I should apply for another 0% deal to transfer the debt to, or whether given that I am on a repayment plan with one current accounts overdraft that I will just get rejected again and this will affect my credit negatively?

Any advice on this would be greatly received.
Thanks everyone

CannyJock

Can you get a refund on the holiday or sell it to someone?

CannyJock

If you check your credit report you'll be able to see how the overdraft and payment plans look to the outside world. Will also help confirm you've no other dormant cards that you don't know about.

Personally, in for a penny, in for a pound. I'd put in an application for another card. There's a full list of current 0% super balance transfer offers on the stoozing site (supported by MSE).

milliemonster

Have you checked your credit report to see what is detailed on there? if you haven't gone over your overdraft limit and are currently paying it back then there should be nothing negative recorded about that which has caused the rejection.

From what you say, Virgin have refused you due to level of current debt is that right? this is the reason we keep getting rejected at the moment even though we are overpaying like mad and have nothing adverse on our files.

Who is your current card with? sometimes you can be rejected as you may already have a card with the same provider (eg Alliance and Leics and Virgin are both MBNA owned)

You need to check your credit report first and perhaps try and completely different provider (such as Egg?) and if you get rejected again then the only other option is to just knuckle down and pay off what you owe in the interim until your credit rating improves

Karl.H_2

BillBonesKnows wrote: »

Further, I recently got a new job and we bought a holiday with the intention of switching the cost to a 0% credit card - however Virgin told me where to go, citing the amount outstanding - which isn't huge and vertainly won't be compared to my new salary.

I don't think purchasing a holiday on a credit card is a good idea, esp. when you're in your overdraft. How will you be switching the cost to the 0% credit card? Is the amount you paid for the holiday sitting on another credit card or in your overdraft? How many other credit cards do you have? You have only just started your job so you will not have proof of what you're earning, hence why Virgin has 'told you where to go'. I would certainly try another card company and if that's rejected you know something's wrong with your credit file.

Moggles_2

We have both been asked today to reduce our overdrafts significantly within a few weeks, which is unrealistic and so have had to agree to a repayment plan to reduce the overdraft more gradually.

You don't mention which bank is involved but, from feedback here, this negative data turns up on credit files within a month, so I'd apply for another credit card PDQ

Moggles_2

To help you further, we would need to know which credit cards you have at the mo or have held recently.

BillBonesKnows

No worries, thanks for the input guys.
I wouldnt normally have gone for the credit card option but it was a particular situation - hadnt been for a while and won't get the chance for a fair time as I will be working hard.

I'll try and answer all questions in a one-r:

1- the holiday has been and gone, and is sitting on my nationwide creditcard - just wanted to switch it to 0% to save paying the interest.

2- I have signed up for credit check, just waiting on a pin through the post so that I can check the file

3- Virgin just said it was purely the amount outstanding, as I had recently put the holiday on my card which added up to the majority of my credit limit

4- current credit cards - £900 on nationwide, I have an amex card with £3,000, but just wanted to get the 0% card to switch the holiday amount to 0% to let me pay the overdraft back first (£700) which is incurring interest as well

5- think i will give it a bash on another 0% - that would solve the issue

You don't mention which bank is involved but, from feedback here, this negative data turns up on credit files within a month, so I'd apply for another credit card PDQ


Mine is Nationwide - I spoke with 2 different customer service peoiple who assured me that the repayment overdraft wouldnt affect negatively unless I defaulted on a payment - so you think they have lied then?

hattiefats

I got knocked back for virgin but barclaycard gave me 0% balance transfer last year. I think virgin needs a really good credit score.