Query - Credit Card application details...?

Lopo

Hi all, - Thanks for you advice in advance!! !

This has always crossed my mind and I've often wondered if there is a right (advantageous) or wrong (disadvantaged) way of doing this....

Basically, when applying for a new credit card...what is the purpose of the lenders asking for what your existing cards are and also the limits and outstanding balances they carry ?

Odd question, but warrants some thought as I would like to know if it has an impact on what you may or may not be offered as a limit once you make an application.

I figured either way, they are going to look at your credit history details, and be able to view the same information anyway. Is it therefore for security? Or, to prove who you say you are etc...? Check to see if you already have too much credit or too much debt ?

If you had a few cards generally at your disposal, is it wise to detail the big limits on the application or smaller limits that you have. Again, should you detail the big current spend debts or just the smaller amount ones ? Do they view the big debts as a moneyspinner for themselves or view it as risk hence giving you a low limit!? Which is it!!! ???

Can anyone shed any light on this or have an insight into the murky world of how they issue credit values or perhaps even speak from personal experience !??

I have basically today applied for a 0% card for 9 months, so looking to see what they offer me as I do wish to buy something large and use this to pay for it over time, its hard to judge what I may get so thought I'd appeal to the masses of wisdom out there for an idea of the possible amount!

I will off course update you all once something comes through, but would appreciate some of your experiences or opinions on it all in the meantime!

....ooohhh the suspense!!!

Just some more info for those wanting to compare with me....the only debts that I have currently have are on two cards, which are the two I decided to detail on the application. One is around £6000 limit carrying £250 of spend. The other is £2500 carrying £200 of spend. I generally clear them all monthly. Have no property, so no mortgage and no other debts....Have a spanking good credit rating as far as I know, never had any issues generally...

The credit issuer that I have applied for with this new card I have personally used in the past, but do not currently have any products with them, so they are aware of me historically....I have also a few other cards with other lenders, some going upto £10k (they will see this in the credit check anyway, right!???!?) but never use which is for very rainy emergency days!! (Not sure if its wise having these generally as they have not been used for years!?)

Lets see what happens....! 8)

Thanks for your time...!

Lopo

SmartRRRR

I have wondered about these questions, and the reasons behind them. It could be to assist the issuing company with a credit history search.

Because your application will be referenced through a credit agency, such as Experian or the like, if the information you give doesn't match the details on your records then that could be a disadvantage.

I've just cancelled a couple of MBNA accounts and opened Barclaycard and Accucard accounts so there will be a delay before the info filters through. I don't know if this will have any effect on my rating, but I doubt it.

I might be wrong, but it's the reason I came up with.

Lopo

Hi again...

Thanks SMARTRRRR, good to know I am not the only one who wonders these things!!

Its an MBNA card that I have applied for. They are normally pretty good and flexible to use. Just hoping the amount is decent enough for what I had in mind.

Interestingly, I did the equifax credit score rating check thingy online the other day for £3.50, managed to get a score of over 500 which I thought was pretty respectable seeing as the little coloured bar image they had only showed 475+ so even if this is taken with a pinch of salt since it is only an indicator from equifax's perspective I should be in for a good amount from MBNA on the new card hopefully.

The equifax site is interesting in the sense of revealing that you can be considered as having too many products active. Rather than an "Excellent" rating, I was given a "good" for having currently 6 products open from about 20 or so accounts that still show up on my profile

I did as a result of that, close down a card that I had not used since January....

We shall see what happens...! Anyone hazzard a guess on what figure I could expect !??? ::)

Cheers..!

Lopo

Just an update as promised..!

Looks like MBNA were not feeling too generous at first. Offered a humble £6000 for the card applied for 9 months at 0% with the freebie dect digital phone.

Rather oddly though, a couple of days later folllowing confirmation of the first card I applied for the virgin (by mbna) card for with the freebie mp3 player.....They have now confirmed that also with £7000 with 9 months 0%!!

So £13000 given in the space of a week from one provider with relevant credit checks... interesting.

I have also just got a cahoot 5.5% savings account which will soon be filled up courtesy of mbna!!!

Who should I apply for next!! ?

whoo-hoo!